How much money do I need to retire

Having a Dh1 million fund for retirement may seem a difficult task, but that may be the minimum amount of money you might need once you stop working, say experts.

Richard Musty, Managing Director, Lloyds TSB in the Middle East says “the sooner the better” should be the approach for starting a retirement fund as each delayed year adds to the pressure on the individual.

Click here for the top 5 ways to prepare for retirement

“For every five years that you wait to start your retirement savings plan, you have to double your monthly contribution to reach a set lump sum,” Musty told 'Emirates24|7'.

“If an individual is 35 years of age, and plans on retiring at age 65 with a view to have a pension fund at retirement of Dh1 million, then that individual will need to save Dh33,000 per annum. If the same is 45 years old with the same view of a pension fund at retirement (of Dh1 million), then that individual will need to save Dh132,000 per annum,” he said.

However, this figure is not applicable on all and the amount can vary. “Retirement planning advice will differ from person to person and will depend on a number of factors, including personal circumstances, age, employment and life priorities,” Musty said.

Retirement Calculator

Assuming you are 35 years of age now, expecting to retire at 60 with Dh36,000 monthly expense then... Click here to do the math...

Assuming you are 25 years of age now, expecting to retire at 60 with Dh45,000 monthly expense then... Click here to do the math...

Assuming you are 45 years of age now, expecting to retire at 60 with Dh30,000 monthly expense then... Click here to do the math...