How much do you really need for retirement? Stockport financial experts help us find out
Retirement may feel like a distant milestone, but planning for it today is one of the most important financial decisions you can make.
Although many people understand the need to save, few know how to determine how much they'll actually need when they retire.
That's where a qualified financial adviser can make all the difference - our friends and sponsors at Beech Tree Financial Advice Ltd share their insight.
Why retirement planning matters
People are living longer, and the cost of living isn't going down. Relying solely on the state pension or workplace schemes may not give you the lifestyle you're hoping for in your later years.
The earlier you start saving — and planning — the more control you'll have over your financial future. But effective retirement planning isn't just about saving blindly. It's about saving strategically.
How much will you need?
The big question isn't, "How much should I save?". It's: "How much will I need to maintain the lifestyle I want in retirement?"
This is where a financial adviser adds real value. Rather than guessing, we help you calculate your desired retirement pot based on:
1. Your Desired Retirement Lifestyle
We start by helping you define your retirement lifestyle:
- Do you plan to travel?
- Will your mortgage be paid off?
- Will you want to help children or grandchildren financially?
Your lifestyle goals help us estimate your annual retirement income needs.
2. Your retirement age
The earlier you retire, the longer your retirement will be — which increases how much you'll need. We'll factor in your preferred retirement age to determine how many years your retirement pot needs to last.
3. Inflation and rising costs
Inflation silently erodes the purchasing power of money. A good plan accounts for inflation over the decades before and during retirement.
4. Existing savings and pensions
We review your current pension pots, ISAs, investments, and other assets. This gives us a starting point and helps identify any shortfall between where you are now and where you need to be.
5. State pension and other income
We'll factor in what you're entitled to from the state, plus any other regular income you may have in retirement (e.g. rental income, business income, part-time work).
Bringing it all together
Once we understand the full picture, we can calculate your target retirement pot — the total savings you'll need by the time you retire to generate your desired income sustainably.
For example, if you want an income of £30,000 per year from age 67, we'd model how big a pot is needed to generate that income without running out of money — often using a mix of drawdown, annuity, or investment strategies.
We then work backwards to determine how much you need to save monthly or annually, adjusting for your risk appetite, investment strategy, and timeframe.
Final thoughts: you don't have to do it alone
Retirement planning can feel overwhelming — but it doesn't have to be. Working with a financial adviser means you get a personalised, actionable plan built around your goals, not just vague rules of thumb.
The best time to start was yesterday. The next best time is today.
If you'd like to understand what your retirement number looks like, and how to get there, Claire or Eden at Beech Tree Financial would love to answer your questions! Contact them today at: 0161 282 4521 or [email protected].
Want to explore your retirement options? Click here to book a free initial consultation.
Approver Quilter Financial Services Ltd 14/08/2025
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