Retirement Living Standards in the UK: 2024 update published

Cobbler_tone

I found this raw data on the average comfortable couple's spending habits*
They should definitely look to shave some off that broadband deal.



* I made it up.

MeteredOut

Cobbler_tone said:

I found this raw data on the average comfortable couple's spending habits*
They should definitely look to shave some off that broadband deal.



* I made it up.

I only need a Mulberry handbag every second month, so there's a saving of nearly £5K.

Albermarle

Organgrinder said:

michaels said:

Organgrinder said:

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.

This is the bit I find hard to fathom - surely the standard of living should compare to the average standard of living in the UK - afaik median household income is about 34k so 'moderate' which sounds to me like some sort of measure of average surely should reflect what life in the UK is actually like rather than being something highly aspirational for most?

Perhaps income distribution is skewed towards those who are older so may be moderate rather than relating to the general population should be linked to the median household income of those close to retirement age?  Is there any data for this?

Roger175 said:

SouthCoastBoy said:

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.

Totally agree, our expenditure is around £35k which buys us a comfortable living. We've accurately recorded exact expenditure for the last 3 years as we geared up for retirement, so this is not an estimate. We have a large detached countryside property, run 3 cars, take several foreign holidays a year and help 3 adult children from time to time.

I've always found the PLSA figures bizarre. They suggest our comfortable cost of living in retirement will be more than we've ever actually earnt and that was when we were building up pensions, bring up 3 kids and paying a mortgage etc. 

I too find the figures the PLSA uses bizarre.  

We estimate being able to holiday abroad 3 or 4 times a year. Be able to replace our cars every 4 years, eat out regularly etc and still find our savings growing! Ok things may change over the next few years but even so I find the figures they quote somewhat unrealistic.

As you can guess I am somewhat cynical with regard their motives. So maybe what we should be asking is "in comparison to the PLSA figures what do those on similar incomes spend their money on?" or "what do you need to have a lifestyle similar to those quoted?"

I am getting some deja vu regarding these discussions about these figures.

ali_bear

I think your comfortably typical couple are eating a bit too much. Either that or too often in M&S 

Cobbler_tone

ali_bear said:

I think your comfortably typical couple are eating a bit too much. Either that or too often in M&S 

That was actually a line which probably isn't too far off our spending, maybe a little over. She drinks too much Cava and I like the £3.50 baked beans from Waitrose. I also spend a fortune in our fabulous local bakery. My jokey quip is "I'm too old to shop in **** supermarkets"
You also get to hear some great one liners in Waitrose.

I don't have an issue with what we spend on groceries. Some people will happily pay £15 in McDonalds or £50 in Nando's to avoid washing up and eat stuff you could do far better yourself. We tend not to go out to eat too often because I am such a good cook. Her words not mine.

ali_bear

I was also getting through a few bottles of their cava when they were selling it at £9. Thanks for the beans tip. Waitrose is my local convenience store. 

GenX0212

Roger175 said:

SouthCoastBoy said:

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.

Totally agree, our expenditure is around £35k which buys us a comfortable living. We've accurately recorded exact expenditure for the last 3 years as we geared up for retirement, so this is not an estimate. We have a large detached countryside property, run 3 cars, take several foreign holidays a year and help 3 adult children from time to time.

I've always found the PLSA figures bizarre. They suggest our comfortable cost of living in retirement will be more than we've ever actually earnt and that was when we were building up pensions, bring up 3 kids and paying a mortgage etc. 

My Dad probably has in the region of £15k annual pension (incl. SP). He lives a happy life and still manages 4 to 5 weeks a year holiday abroad.

westv

GenX0212 said:

Roger175 said:

SouthCoastBoy said:

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.

Totally agree, our expenditure is around £35k which buys us a comfortable living. We've accurately recorded exact expenditure for the last 3 years as we geared up for retirement, so this is not an estimate. We have a large detached countryside property, run 3 cars, take several foreign holidays a year and help 3 adult children from time to time.

I've always found the PLSA figures bizarre. They suggest our comfortable cost of living in retirement will be more than we've ever actually earnt and that was when we were building up pensions, bring up 3 kids and paying a mortgage etc. 

My Dad probably has in the region of £15k annual pension (incl. SP). He lives a happy life and still manages 4 to 5 weeks a year holiday abroad.

I guess it depends on what your expectations of a holiday are.

arthur_fowler

westv said:

GenX0212 said:

Roger175 said:

SouthCoastBoy said:

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.

Totally agree, our expenditure is around £35k which buys us a comfortable living. We've accurately recorded exact expenditure for the last 3 years as we geared up for retirement, so this is not an estimate. We have a large detached countryside property, run 3 cars, take several foreign holidays a year and help 3 adult children from time to time.

I've always found the PLSA figures bizarre. They suggest our comfortable cost of living in retirement will be more than we've ever actually earnt and that was when we were building up pensions, bring up 3 kids and paying a mortgage etc. 

My Dad probably has in the region of £15k annual pension (incl. SP). He lives a happy life and still manages 4 to 5 weeks a year holiday abroad.

I guess it depends on what your expectations of a holiday are.

Yes. Our budget is £20k pa on holidays.

westv

arthur_fowler said:

westv said:

GenX0212 said:

Roger175 said:

SouthCoastBoy said:

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.

Totally agree, our expenditure is around £35k which buys us a comfortable living. We've accurately recorded exact expenditure for the last 3 years as we geared up for retirement, so this is not an estimate. We have a large detached countryside property, run 3 cars, take several foreign holidays a year and help 3 adult children from time to time.

I've always found the PLSA figures bizarre. They suggest our comfortable cost of living in retirement will be more than we've ever actually earnt and that was when we were building up pensions, bring up 3 kids and paying a mortgage etc. 

My Dad probably has in the region of £15k annual pension (incl. SP). He lives a happy life and still manages 4 to 5 weeks a year holiday abroad.

I guess it depends on what your expectations of a holiday are.

Yes. Our budget is £20k pa on holidays.

Ours is a more modest £6k for two a year.