Click to Chat

Live chat with our customer service team.

InsureWithMax Blog


Setting Investment Goals

The summer is a good time to consider investment goals, even with rapidly rising living costs. Whatever the age or the financial situation, working people need to set investments goals that will drive their savings strategy. What are your investment goals for the next 10 years?

Investment goals

Money is king

The government issued guidelines, showing how much of your existing income you'll need to receive in retirement to help maintain a current standard of living:

  • 70% of current income if earning £12,20-£22,400
  • 67% of current income if earning £22,400-£32,000
  • 60% of current income if earning £32,000-£51,300
  • 50% of current income if earning over £51,300

A retirement income is lower than current earnings, as many everyday expenses won’t apply after retirement, e.g., travel to work costs or mortgage payments.

Think now 

Spend 30-minutes thinking about your investment goals. Here are some typical goals:

  • Avoid running out of money before dying.
  • Maintaining or improving lifestyle.
  • Increasing wealth over time.
  • Spending everything before dying.

Your situation is the driving force 

Each person will have their own needs, but here are the key considerations:

  1. Your State Pension entitlement, as it currently a £185.15 with 35 years’ worth of NICs or credits.
  2. Your planned lifestyle in retirement.
  3. Your expected retirement date year.
  4. Your investment risk appetite, as more risk can create higher returns.

The government made all employers offer auto-enrolment workplace pensions for employees, where employees contribute a minimum 5% (which includes tax relief) and 3% from the employer. Many pension experts say that the minimum should be increased to 12.5% by 2028. No mean feat when we are gripped by a cost-of-living crisis that may run for years.

ChildMax continues to ensure your salary and pays your take home salary while you’re on 12 months’ unpaid leave, caring for a sick child. It starts from £49.50 or for easy budgeting an initial payment of £8.25 followed by 11 monthly payments of £3.75.

Visit at www.insurewithmax.com or call the UK call centre 0333 323 0098 for more information.

Important: Investing involves the taking risk that may include losing money, given that past performance is no guarantee of future performance.

Sources:

https://www.fisherinvestments.com/en-gb/how-to-invest/investment-goals/

https://www.aviva.co.uk/retirement/pension-basics/how-much-should-pay-into-my-pension/

https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/automatic-enrolment-an-introduction

 

Date: 22 August 2022 by max robinson