Everybody knows that we should start planning for our
retirement as early as possible and the days of the state
pension providing for us in old age are well and truly
behind us (in 2008-2009, the full basic State Pension is
just £90.70 a week for a single person and
£145.05 a week for a couple).

We'd all like to imagine that we'll be able to spend our
retirements sunning ourselves on foreign beaches or
pottering away in our gardens, but unless we make provision
above and beyond what the state offers, there's not much
chance of that.

So how much do you really need in retirement and what steps
should you take now to make sure you have enough?

How much will you need in retirement?

Of course the answer to this question will be based on your
own lifestyle expectations. If you want the sunny beaches
then you're going to need and awful lot more than someone
who is content with the pottering around the garden.

If you're just starting to consider a pension

If you're just starting to look at your retirement needs,
it's easy enough to plan out the amount that you'll hope to
have available to you in retirement - and then work
backwards to see how much you'll need to save each month to
achieve that.

For example, if you want an income of £35,000 a year,
an annuity at 7% would need a pension pot of £1/2
million to deliver that level of income. That doesn't
necessarily mean that you'll need to save £500,000
before you retire - interest on your pension fund through
saving and investments should help - but it does mean the
earlier you start the better.

The growth of pension funds can vary, as can factors like
inflation, but your independent financial adviser should be
able to help you get a good working figure to base your
plans on - and find you the best pension product to get you
started.

If you already have a pension

If you're already saving for your retirement through a
personal pension, stakeholder pension or SIPP of some
variety then it's important that you keep an eye on the
performance of your pension to ensure that your initial
calculations are still working out.

Many people are not aware that they can change their
pension arrangements and pension providers if their pension
fund is not performing as well as they had hoped - or not
on course to deliver the retirement income they need.

An independent financial adviser can help you shop around
for the best fund for you - and ensure you get the most
from your money.

If you're just about to retire

The decisions you make just before retirement can have a
huge effect on the amount of money you have at your
disposal in retirement. If you've been regularly paying
into a pension you have two basic choices; either buy an
annuity to provide you with an income for life or an
unsecured pension - whereby you take an annual income but
invest the remainder.

Even something as simple as choosing the right annuity for
you can make a massive difference to the amount of annual
income you can expect - so it's vital to get the best,
unbiased advice you can.

If you've already retired

If you have already retired then it's certainly worthwhile
taking an occasional look at your income and any other
savings or investments you may have. If their performance
can be improved then you'll see an immediate impact on the
amount you have to enjoy in your retirement.

No matter what your current situation, if you want to get
the most from your money in your retirement it's important
that you get the best possible advice and have access to
the best possible products - and the earlier you do that
the better.

An independent financial adviser, especially one who
specialises in retirement planning or has pension advisers
on staff, is well placed to deliver just that.