How much money do you need to buy retirement bliss?

Have you ever wondered how much would really be enough to achieve true financial freedom?

There’s no “golden number” that would satisfy everyone – the amount you would need to fully let go of financial worries and achieve your goals is unique to you.

For many, the question of, “How much is enough?” ties in with retirement. After all, having the wealth to retire at the age you choose, with enough to sustain your lifestyle and leave a legacy for the next generation, is likely to fulfil most people’s idea of financial freedom.

However, half of over-55s say they’re worried they will outlive their savings, Pensions Age reports, equalling 10.5 million people. With the cost of living continuing to rise, tax brackets remaining stagnant in many cases, and a number of tax breaks having been tightened in recent years, you too might be beginning to worry that you won’t reach your retirement goals.

Luckily, there are measures you can take to work out how much is enough for you to reach these all-important goals and achieve retirement bliss.

Keep reading to find out more.

First, figure out your non-negotiable goals

Everyone has non-negotiables that keep them motivated. Perhaps yours is retiring under 60, or being able to help your children step onto the first rung of the property ladder.

Maybe you have several non-negotiables that inform your financial behaviours and act as your compass.

Or, as is the case for many busy executives approaching retirement, maybe you have never really stopped to think about your most treasured ambitions for life after work.

If the latter rings true for you, it’s never too late. Alongside your partner or spouse, if you have one, take the time to sit down and discuss your goals at length. It might be beneficial to have these conversations while you’re both in a good mood and experiencing low stress levels, such as during a holiday, where you’re able to spend quality time as a family and have the mental clarity to envision your ideal future.

Questions to ask yourself (and each other) include:

• When do I want to retire, and is this a non-negotiable deadline?
• How do I want to retire? In other words, what kind of life do I want to lead once I stop working?
• Where do I want to live in retirement?
• How much would I like to give to my children and grandchildren before or after I pass away?
• Are there any items on my bucket list that are yet to be ticked off?

By identifying some answers – even if they’re vague to begin with – you can take the next step towards finding out how much is enough to achieve your version of retirement bliss.

Read more: Your practical checklist for retiring successfully in 2025

Next, use cashflow modelling software to map out your wealth circumstances

With your goals and ambitions noted down, now comes the reality check: will your wealth measure up against the lifestyle you want to achieve?
Cashflow modelling might help you answer this all-important question.

This intelligent software (along with the human insights of your financial planner) analyses your financial information, including your:

• Existing income
• Cash savings
• Investment portfolio
• Pensions
• State Pension entitlement
• Properties
• Ideal retirement age
• Monthly/annual expenses.

Using this information, the software creates a projection of your potential financial circumstances in retirement. It takes factors like inflation, interest rates, and investment returns into account.

You can also include one-offs like providing a lump sum to a child for their house deposit. You may even wish to include a long-term gifting strategy, such as handing over surplus income gradually to adult children.

Not only might these elements help you understand your financial position for retirement, but these strategies are also important for mitigating Inheritance Tax (IHT), especially as pensions are likely to be caught in the IHT net from April 2027 onwards.

Finally, keep in touch with a financial planner who can provide ongoing bespoke guidance

Whether you’re decades away from retirement or just months away from this important milestone, speaking to a Kellands financial planner could help you form a plan of action.

We understand that in today’s ever-changing financial landscape, you might feel pessimistic about achieving complete financial freedom. But with professional intervention, you could find that your goals are closer than you’d imagined, and you may be able to pursue previously unknown wealth creation opportunities for you and your family.

Engaging with us provides you with a springboard for your ideas and a professional foundation on which to build your retirement and legacy.

We’ll provide you with:

• Access to cashflow modelling software to help you figure out how much is enough to reach your ambitions
• One-to-one chats with our award-winning team
• Ongoing communications that help you come to terms with complex financial issues
• Guidance on changing legislation regarding tax, pension savings, and investments
• A long-term relationship with a financial planner who prioritises your financial freedom and listens to your concerns.

To find out more about working with us, email us at hale@kelland.co.uk, or call 0161 929 8838. 

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, cashflow planning, or tax planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

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