04/11/24
News, Resources, Insight and Opinion from Browning Financial Planning
The Rule of Thumb with regards to accumulating pensions and investments
04/11/24
In 2024, the UK average salary is £33,696.
As a rule of thumb, you should have accumulated an investment/pension pot equivalent to 1 year's salary by the age of 30. For the average wage earner, this equates to £33,696.
By 40 you should have three times average salary, so £101,088.
By 50 it is six times, so £202,176.
At 60 it is eight times, so £269,568.
And at 67 (state pension age) it should be ten times, so £336,960.
Please note these are 2024 figures so the figures needed will increase in line with wages/inflation.
Your own income may be higher or lower than the average, and YOUR figure is the only important one, however people often ask me how they are doing compared to others, so please take these figures as a general guide only.
Financial advice will help you work out "your number", the amount you will need to ensure you do not run out of money before you die. Nothing can beat a personalised financial plan, built by us and our clients, using cutting-edge cashflow planning software.