Personal Finance

Want to retire as a 'millionaire'? The key steps to take for comfortable later life

No one wants to retire with less money than they expected, but only by having a disciplined saving strategy before retirement can one hope to get that seven-figure balance. This is how much one should look to save and invest each month for retirement depending on when they are planning to retire.

Retiring as a millionaire may appear far harder than it actually is, and all it truly takes is some self-discipline and knowledge of what one actually needs to achieve this goal. 

Aside from the millionaire status, the seven-figure nest egg can also ensure that one’s later years are filled with luxury and bliss rather than financial woes. 

However, a big factor in determining one’s retirement income is how early on in life they begin planning for it. 

Longer-term investments generally carry less risk to capital due to its timespan, but that’s not to say investing for five or 10 years is not going to have a big enough impact on one’s retirement fund. 

While this may be a riskier tactic, having a diversified portfolio, and understanding the financial terminology and trends of a stock or share before investing, can help mitigate it a bit more. 

It must also be noted that every investment made has capital at risk, although the level of risk may differ. 

The Motley Fool calculated how much one should invest using a balanced portfolio of stocks and bonds, and with the expectations of an average eight percent annual return in order to retire as a millionaire, depending on when they intend to retire.

Retiring in five years can be a nerve-wracking time, one may feel that their savings are lacking and that they don’t have the time to fix it. 


However, investing £10,288 every month should see the digits quickly stacking up. 

Having 10 years until retirement does leave a little more leeway but does still require a hefty monthly contribution of £4,166 to achieve the millionaire milestone.

Retiring in 15 years will require £2,222 put aside in monthly investments while 20 years only needs roughly £1,318.

If one has more than 25 years until they plan to retire, the monthly investment goal becomes more and more feasible, making it easier to invest, save and still live a good life. 

Investing £824 for 25 years will see one reaching millionaire status by retirement. 

This lowers to £532 with 30 years until retirement and an almost inconsequential £349 for five years.

Clearly, the longer one has until retirement the easier it may be to reach their millionaire status, and while a couple hundred pounds turning into a million may seem unreasonable the key is consistency.

Ensuring the one invests this amount every month and does their share of research on the investments they are making, achieving a seven figure net worth is almost too easy.

One of the most popular methods to make sure one’s decided amount gets invested every month is to automate the process and treating the investment like a bill rather than an optional expense. 

Aside from simply guaranteeing that one keeps on track with their pension contributions, by putting investment money aside as soon as one gets paid it also allows them to spend their leftover money guilt-free as they know their bills, savings and retirement have all been taken care of already. 

However, even if one can’t afford to make these contributions every month or at all, beginning their investing journey as early as possible provides the maximum amount of time and chance for them to greatly improve their financial situation. 

Many financial experts also advise that those investing for the first time actually should not use large sums to invest, but rather start with small amounts that would not greatly affect them if the investment ends up tanking.

Britons are generally urged to seek financial advice on the suitability of investment for their circumstances.


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