Retirement plan - rules of thumb

Rules of thumb

  1. The retirement plan - 50% rule: Take the age you start your retirement plan and halve it. Put this percentage of your salary aside each year until you retire.

    Retirement plan example: An individual starting his / her retirement plan at age 32 needs to invest 16% of their salary for the rest of their working life.

  2. Annuity - 13 times rule: To secure a consistent level of income payments on the purchase of an annuity, you will need to accumulate an amount approximately equal to 13 times the annual income you would like to have upon retirement.

    Annuity example: In order to receive €50,000 per year in lifetime income payments from an annuity, you will need a pension fund of €650,000.... to create a pension fund of €650,000 it is necessary to save circa €750 per month at 8% interest for 25 years.

Click on our pension calculator to determine the size of your future retirement fund.