Retirement Living Standards in the UK: 2024 update published

[Deleted User]

As always the amount needed for retirement depends on individual lifestyles and  personal preferences. As a single person I appear to be in the moderate section, but personally feel very comfortable and able to save a decent amount each month.
In my opinion the concerning thing about publishing such figures is that they can cause unnecessary worry to people considering or entering retirement.
Spending categories also vary enormously from person to person. For example assumptions that people will spend so much on alcohol or hobbies  is very generalised.

cheerfulcat

Phossy said:

They have interviewed a few more people this year "In total, 249 people participated in the discussion groups, across thirteen different locations in the UK (including groups in Northern Ireland, Scotland and Wales)", but it feels a woefully small number to get a real feel. Add to that a high proportion are not retired and under 50. I don't think this is a fair representation, but it is nicely packaged and media outlets and YouTubers will run with it without question, but likely a few defense mechanisms.

If you read the methodology it specifically says that the groups involved in determining these numbers were made up of people over 50.

kimwp

GunJack said:

Marcon said:

Cobbler_tone said:

So between £13,400 - £60,600 depending if you are single, in a couple, live on pasta or enjoy the finer things in life.
These numbers always generate debate, which is about the most use you get from them.

Quite.

The main absurdity is that the numbers assume people are mortgage and rent free at the point of retirement.

Mortgage free I get, but how do you get to be rent free unless on benefits of some sort, which then begs the question how you would afford the moderate or comfortable levels in the first place?!?!?!? Barking...

It's just saying you need to add any mortgage or rent payments to these numbers.

Albermarle

JoeCrystal said:

Cobbler_tone said:

So between £13,400 - £60,600 depending if you are single, in a couple, live on pasta or enjoy the finer things in life.
These numbers always generate debate, which is about the most use you get from them.

£13,400 to £60,600 NET rather than gross which bump up the income required even higher!

In the table in the OP, it also quotes pre tax income needed. A 'Comfortable Couple' need nearly £70K pre tax and another £2K after tax  if they live in London is mentioned in the report itself ( seems a small premium for London)

I would think in reality though their income would be lower than that, and that at least some one off purchases would come from savings/S&S ISA's etc 

kimwp

Albermarle said:

JoeCrystal said:

Cobbler_tone said:

So between £13,400 - £60,600 depending if you are single, in a couple, live on pasta or enjoy the finer things in life.
These numbers always generate debate, which is about the most use you get from them.

£13,400 to £60,600 NET rather than gross which bump up the income required even higher!

In the table in the OP, it also quotes pre tax income needed. A 'Comfortable Couple' need nearly £70K pre tax and another £2K after tax  if they live in London is mentioned in the report itself ( seems a small premium for London)

Pondering the premium, housing is more expensive, but excluded from the figures. Eating out will be more expensive, maybe car insurance due to crime rates? Are things like utilities, groceries and clothes more expensive? 

SouthCoastBoy

Our annual expenditure is around 30k a year(after tax) give or take a couple of thousand. On this we run two cars,have holidays abroad (at least once a year) and some uk weekend breaks, plus support  2 adult kids with the odd few hundred pounds now and then. 

The 30k puts us in the moderate category, but I would say I am living comfortably on 30k after tax, which should get easier when we are retired as currently we have to take holidays during school holidays as my wife is a TA.

Albermarle

westv said:

The "comfortable" income will be easily attainted by most on here. 😂

Or perhaps more accurately - That comfortable income could be easily attained, but instead they/we spend less,and keep the rest squirrelled away 'just in case' 

Organgrinder

When compared to the IFS figures for household incomes, the PLSA figures place the categories for singles/couples a follows:

Comfortable: Better than 91%/85% of the population
Moderate: Better than 78%/66% of the population
Minimum: Better than 17%/17% of the population

Of course this is after housing costs - so will differ even more for those with housing costs. But we should remember that the figures themselves are based on a survey of a small number of people. Myself and my wife do not come anywhere near the comfortable figure but our figures would I think provide for a nice retirement.

So I delved further into their examples.

Nicole who they decribe as a higher earner contributing 8% of her salary - she would have a slightly below moderate retirement.
Daniel and Aisha (one higher earner, one median) - a similar story moderate
Josh and David (both higher earners) - again moderate but slightly higher
etc.

They suggest increasing the pension contributions. Hardly surprising given who the PLSA represent - yes, the pensions industry.

GenX0212

Holidays & Leisure

• TV, laptop, printer, speakers, CDs and stationery supplies

Might need to revise my plan! 

HedgehogRulez

Love a stapler