When you picture your retirement, what do you see? Do you want to go travelling and see the world, or would you rather indulge in some previously neglected hobbies? On a more practical level, how often do you see yourself dining out? What car would you like to be driving in retirement? How many DIY projects would you like to complete each year?
These are all things you probably haven’t thought too deeply about, but is the future you want the future you will be able to afford?
The Retirement Living Standards website, published by the Pensions and Lifetime Savings Association (PLSA), the trade association for the pensions industry, has been developed to help you understand exactly this. Their straightforward categories can show you what life in retirement will be like, depending on how much income you’ll have.
The figures indicated are based on various yearly expenditures, including food, transport, holidays and even birthday gifts. There’s also a breakdown so you can see exactly how much you can expect to spend on each category each year.
There’s no one-size-fits-all amount when it comes to retirement savings, so the RLS website has provided three lifestyle options, giving you a better idea of how much you might need, depending on your plans.
The three standards of living demonstrated are:
Minimum: covers all your needs, with some left over for fun
Moderate: more financial security and flexibility
Comfortable: more financial freedom and some luxuries
Each standard of living is shown as an amount for a single individual, and an amount for a couple.
Their most recent research indicates that you would spend the following amounts per year, depending on your lifestyle of choice:
| Single |
|
Couple |
|---|---|---|
| £12,800 | Minimum | £19,900 |
| £23,300 | Moderate | £34,000 |
| £37,300 | Comfortable | £54,500 |
For a more in-depth look at the figures, go to www.retirementlivingstandards.org.uk