Your retirement income
For most people, the retirement pension does not, and will not, provide sufficient income for a comfortable retirement. Successive governments have made it clear that private provision for retirement is now essential. Therefore, throughout your working life – starting as early as possible – you will need to build the resources necessary to provide an adequate income in retirement. As a rough guide, to maintain your current lifestyle in retirement you will need an annual income equivalent to 60 – 80 per cent of your current income requirement.
You need to plan how you will build up a fund capable of generating this level of income once the flow of income from your business comes to an end.