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I want to retire with £10 million. How much should I save?

By Sam Instone - May 07, 2019

£10 million is a lot of money.

For most, it seems impossible to accrue.

But it can be done…

With discipline and a plan of action.

In 2011 my good friend, Andrew Hallam, wrote a best-seller explaining how he became a millionaire on a teacher’s salary.

But that was then.

For millennials, with around 40 years until retirement, inflation means £10 million may just about cover a comfortable retirement.

£1 million will have the same spending power as £306,000 today.

£10 million will equal £3,060,000.

Over the course of that retirement – it will shrink again.

Your money will buy you less over time

Puts things in perspective doesn’t it.

Everyone’s so busy planning their blissful non-working days sipping martinis on a beach…

They forget about things like housing and medical costs.

Palliative care.


Expenses for the family, and more.

According to The Motley Fool…

10,000 baby boomers in the USA reach retirement age every day.

Every 1 in 4 baby boomers have no retirement savings.

A problem that’s not unique to the USA alone.

Only 1% will retire wealthy

With a projected $400 trillion retirement savings gap by 2050

We have to ask ourselves: “how did we get here”?

More importantly, how can we avoid a personal retirement crisis?

The first step: stop making excuses.


“I’m young – I’ll save when I’m older”

It’s easy to find an excuse to not save.

Or not save enough.

But those who save sooner rather than later…

Not only contribute less but also have compounding work harder for them.

Let’s take the seemingly ambitious goal of retiring with £10 million.

Assuming an annual return of 7% (the long-term average of investments)…

A 20-year-old would need to save £2720 a month…

A 30-year-old: £5690

A 40-year-old: £12,540

And a 50-year-old: £31,830

This is illustrative of course.

We’re perfectly aware a 20-year-old affording those monthly contributions is unlikely.

However, considering most of our clients are management consultants, bankers, lawyers, engineers and other professionals…

The reality is that hard work is typically rewarded with partnership.

Career progression isn’t linear…

Salaries and bonuses get bigger every year.

When these pay days happen – we encourage them to invest spare capital, not to speculate or take undue risks.


“My company’s pension plan will fund my retirement”

One of our clients had a rude wake-up call.

A senior executive at an oil and gas company, earning a lucrative salary with benefits…

He expected a large pay-out from his company’s pension plan.

45% of his final salary to be exact.

However, on his last working day, the company broke the news…

They had unknowingly shifted pensions based on final salaries at retirement age…

To cheaper ones based on a ‘career average’ salary.

The pay-out he looked forward to was slashed by 25%.

Hitting him like a ton of bricks, he needed to make urgent decisions.

He didn’t have the benefit of time on his side.

So, he downsized his villa to a humble 2-bedroom apartment and sold his luxury car…

Luxury car

Placing the earnings from both into an index fund.

The tropical holiday he planned for himself and his wife were temporarily put on hold.

Now, slowly able to rebuild his wealth… he makes sure others learn from his mistakes.

Especially his adult children.

“Don’t rely on your company’s pension scheme. Always have a separate investment that can bridge any possible savings gap”, he says.


“I lost a lot of money in 2008. I’ve been nervous to enter the stock market again.”

I’m going to be radically transparent…

People only lost money in 2008, because they panicked and withdrew their investments.

Those who remained calm and rode out the storm made tremendous comebacks.

Investors who left the market missed out on the opportunity to make up their losses, and more.

Not to mention those who never bought back into the market… missed out on the longest bull run in history.

The markets are resilient.

What goes down, comes back up again.

Long-term investors understand these market fluctuations actually work in their favour.

Warrenn Buffett's wealth over time


In the words of Nike – just do it!

In our last blog, we mentioned the fact that not everyone needs a financial adviser (at least not all of the time)…

But there is no one who wouldn’t benefit from good financial advice.

Like dieting and exercise – investing can be simple BUT NOT EASY!

Many people benefit from a coach.

The right advice at the right time can help you feel relieved, confident, empowered and good about your financial future.

Don’t miss your chance.

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