Understanding your retirement income needs just got a lot easier
The Pensions and Lifetime Savings Association (PLSA) recently published its new ‘retirement living standards’ which aim to give people a clearer idea of how much money they will need in retirement.
The standards, which include three different levels of living, are based on goods and services, ranging from holidays to food and gifts. It is hoped that these guidelines will change the way people think about their retirement savings.
So what kind of lifestyles do the standards describe? Well for those living outside of London, there are three levels of affordable lifestyle:
The level of income needed for the minimum would be £10,200 for a single person and £15,700 for a couple. Under this minimum lifestyle you would be able to get a £38 weekly food shop and a holiday in the UK but you wouldn’t be able to own or run a car!
If you wanted to have a car (replaced every 10 years) and an annual 2-week holiday in Europe, you would need an income of £20,200 per year for a single person or £29,100 for a couple.
The final, more comfortable lifestyle outlined would require an income of £33,000 for a single person or £47,500 for a couple. This would allow you a few more luxuries including three weeks in Europe per year, a replacement car every five years and a £56 weekly food shop.
Planning your retirement is a huge decision, so these standards are a good guideline to help you make decisions about your future today. If you still have questions, or you want advice on how to achieve your desired level of income in retirement, then book a free retirement planning consultation with one of our advisers. Call us on: 01925 396 122 for a FREE review today.