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How Much Should We Aim to Have in our Pension as a Married Couple at 68?

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Sep 14

Most people underestimate the amount they need to have saved for retirement.

And the problem is that it’s very hard to pick an appropriate investment strategy when you don’t have a clear financial goal.

Having a goal requires knowing what you want so here’s a handy formula to work out what you need.

  1. Decide on the level of after-tax income you’d like to have each month when you’re retired. It’s important to be realistic here because €100 of monthly retirement income needs about €30,000 in a pension to provide it.
  2. Calculate the pre-tax equivalent if you want more than €3,000. (To work it out, simply multiply the excess amount above €3,000 by 1.67)
  3. Next, subtract whatever you’re entitled to from the state. (The full state pension is approximately €2,040 p/m for a married couple)
  4. Then subtract any monthly income you can see coming from any assets you own e.g. rental income.
  5. Now take what’s left and multiply it by 300 to get an estimation of how much you would need in a pension fund; in today’s money.
  6. Finally, determine the inflation-adjusted fund you would need at 68, by multiplying that figure to the factor nearest your current age.
  • Age 20, multiply by 2.59
  • Age 25, multiply by 2.34
  • Age 30, multiply by 2.12
  • Age 35, multiply by 1.92
  • Age 40, multiply by 1.74
  • Age 45, multiply by 1.58
  • Age 50, multiply by 1.43
  • Age 55, multiply by 1.29
  • Age 60, multiply by 1.17
  • Age 65, multiply by 1.06

…And there you have it!

Now, if you’re like most people you will be looking at a reasonably large number here so, whilst not an exact science, you’re in the right ballpark.

If you need help with your plan, or see if you can make improvements to your current setup, then connect with me here or message me directly.


Give me a call anytime on 087 123 2475



*Multiple of 300 assumes a 4% annuity rate.

*Inflation assumed at 2%

*You can earn €3,000 per month in Ireland as a 65 year old with dependant spouse.

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