Do you know what your retirement income will be?
We have no idea what our retirement savings would be worth in the future. Nobody can predict the future as markets are volatile and influenced by global politics and occurrences, however, your financial advisor can project what your accumulated savings and investments could possibly be worth based on current performance history.
- They will use the performance history of funds and markets, and average interest earned over the lifespan, and apply it to your current capital to determine possible future value,
- Or take a conservative interest average of for example 5-6% interest earned and apply it to the growth of your investment to obtain a compounded projection,
- Or they can do a projection of what a monthly income could be, based on an annual % of your projected capital.
This could be over 20,30 or even 40 years depending on your retirement age. Remember we are living longer and need more capital to fund our longer retirement.
It is ideal to get these projections every few years as part of your review. These projections are by no means 100% accurate, but, serve as a guideline of where you currently are in your retirement planning, and is a good indicator of how to adjust contributions or investments to achieve your retirement goals.
Knowing these predictions can give you a reality check (as you don’t just see a lump sum which you might think is sufficient), but an actual monthly income. Chat to your advisor today to include this in your review. It might give you a better understanding or perspective of your retirement savings.
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.