Before you start to plan how you are going to fund your retirement, it’s worth spending some time thinking about your retirement budget. No one wants to be in a position where they run out of money, and working out your monthly expenditure is the best place to start. That way you establish what your minimum income requirement will be. It will take some time to enter the information into this tool, but it’s important to invest this time so that your planner is as accurate as possible. And you can print out your results afterwards to refer to later on if you wish.
Using the tool
- Start by entering your age and current state of health. Then add each source of income separately. This may include: your State Pension; any other pensions; investment income; buy-to-let income; and any income that you will earn from employment.
- Then enter your costs. For each item that you add, you’ll need to decide whether it is an essential cost or not. You can also set costs to stop at a future date (such as when you have finished paying off your mortgage) or you can add future costs.
- The budget planner will then split all of your costs into essential and non-essential items.
- Then it will work out whether you will have money left over, or a shortfall in the money that you need to enjoy your retirement and display this visually for you.
- It will also show you how likely you are to live to different ages, depending on how you rated your health, so that you have a good understanding of how long you need to plan for.
Please bear in mind that we haven’t made any adjustments to the calculations for inflation and future changes to taxation and legislation.