The Rule of 25

The rule of 25 says that if you want an income of £10000 you need to save a quarter of a million.

What? That's too much, haven't  you got ...

A rule of 20

Yes that would be...

Or 15?

Better.

How about 12?

Then I would only need to save half as much. So which one is right?

All of them in a way.....  x25 is not a bad estimate, but if you can live on 2/3 of your income that gets you to x15

No it doesn't it gets you to 16.66

Ah, but you don't pay national insurance  at 10% anymore. So maybe you can make do with x15

And x12?

If you have been saving  20% of your income, then you won't need the full x15, x12 will do.

Ah....where does x20 come in?

Thats how the government values pensions in payment. If you have a £5000 pension that counts as equivalent to £100 000 in value.

So what should I use?

Better go x25 for safety

But that means to get a pension of £10000 I will need to save..

That's right, a quarter of a million.