Richard is 43, divorced and earns £75,000 a year as an airline pilot. His salary should increase every year, so at age 50 he will earn around £95,000 a year and at 60 £120,000. His workplace pension currently has a value of about £45,000, and for every 6 per cent he pays in, his employer contributes almost 16 per cent. Richard has recently sold his house and is renting because he has relocated due to a job change.
Pensions, Isa and trading account invested in shares and funds, cash
Retire at 60 on £50,000 a year, save up a deposit to buy a home, support two children
“I want to retire at age 60 on an income of around £50,000 a year in today’s money,” says Richard. “I used to serve in the armed forces and the pension I accrued when doing that will provide at least £18,000 a year from age 55, and is index-linked. I have already taken my 25 per cent tax-free entitlement from it. That means I need to generate a further £32,000 a year from my current employer pension and assets.