Invest like a sloth, avoid the sharks.

This is a simple model to show the idea. It ignores tax, state and workplace pensions, and the fact that markets never grow smoothly. It is not financial advice.

Show amounts in

How big does your retirement pot need to be?

Current age

Retirement age

Money needs to last until

Currency

Yearly spending in retirement

In today's money.

Assumptions

Inflation per year

Withdrawal rate

Safe withdrawal rate

Your target pot

How much do you need to save each month?

Already saved

Average growth per year

Fees

Index fund fee per year

Vanguard LifeStrategy 60% Equity ETF charges 0.25%.

Adviser fee per year

Management charge plus the fund fees inside the product. Charged through retirement too.

Adviser initial fee

Taken from every payment you make.

Start saving each month in a low-cost index fund

Your pot growing to the target

Sloth: index fundShark: adviserMoney paid inTarget

What the shark eats

Years of retirement spending lost

Monthly saving needed with an adviser

Same savings, same spending. When does the money run out?

Your pot over your lifetime

SlothShark

Sloth: index fund

Shark: adviser

What if…

Markets

I need full-time care

From age

For

Cost per year, in today's money

Replaces your normal spending while you are in care.