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How much to live on

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  • kimwp
    kimwp Posts: 2,909 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    The Retirement Living Standards website new update shows a big increase. Having recently retired I have found that everything is just more expensive than planned for.
    Hi @TywysogLloegr, how did you do your planning? I'm basing it off what I spend now, but there's a big unknown about costs filling in the time that I currently work, any tips or lessons learned greatly appreciated 😊
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • The Retirement Living Standards website new update shows a big increase. Having recently retired I have found that everything is just more expensive than planned for.
    Typical, just a few months before my retirement.

    As usual, my timing is impeccable.

    Cfisis Mr Picton, Cfisis!
  • Phossy
    Phossy Posts: 180 Forumite
    100 Posts Second Anniversary Name Dropper Photogenic
    For me the research base isn't really big enough or representative enough. They have extrapolated a lot from a very small sample size - "135 participants took part in 14 discussion groups between January and May 2023 "

    In previous iterations, they stated that their modelling showed 75% of employees would achieve at least the minimum standard, around half would be between minimum and moderate and that 1 in 6 would be between moderate and comfortable.

    I'm not sure this report represents 'reality' but  if it does, it points towards the minimum being more the norm.
  • Albermarle
    Albermarle Posts: 27,755 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Phossy said:
    For me the research base isn't really big enough or representative enough. They have extrapolated a lot from a very small sample size - "135 participants took part in 14 discussion groups between January and May 2023 "

    In previous iterations, they stated that their modelling showed 75% of employees would achieve at least the minimum standard, around half would be between minimum and moderate and that 1 in 6 would be between moderate and comfortable.

    I'm not sure this report represents 'reality' but  if it does, it points towards the minimum being more the norm.
    I am sure quite a significant % will be below the minimum as they will either not be able to retire, or will retire still with mortgage, credit card debt to pay etc.
    I think the lowest socio economic groups are at least partly ignored.
    Anyway here are the figures if anyone is interested.

    Note the figures are for expenditure, so gross ( pre tax income) needed would be higher.
    Note they do include an  annual cost for replacing items every few years, like Kitchens, cars, white goods, house maintenance etc and holiday costs. So they are not talking just about day to day spending.
    However as a new item that has not been included before, they include helping out family with money. 

    Pension income needed to retire jumps as family costs rise - BBC News
  • Of course retiring with a mortgage or rent still to pay can be more challenging.
  • I have just read the article on the BBC website. To be honest I find some of the figures unbelievable. To say a single person needs over £43000 a year to be comfortable! Lots of families have to get by on that or less! Crazy.
  • @helensbiggestfan. Thanks so much for your excellent post. Wonderful to hear from you again! 
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