What kind of lifestyle you could have in retirement.
Alice_Holt
Posts: 5,949 Forumite
I came across this site:
https://www.retirementlivingstandards.org.uk/
"Retirement Living Standards - The standards show you what life in retirement looks like at three different levels, and what a range of common goods and services would cost for each level."
They are " the starting point to help you engage with your future lifestyle needs."
Apparently to have a comfortable lifestyle (for a single person), requires a (net after tax) income of £33k in retirement.
This doesn't include housing costs (mortgage or rent), amongst other things. It's assumed the mortgage is paid.
To achieve this comfortable retirement apparently requires (in addition to the State Pension), a DC pension fund of £587,116. This is shown on a separate table (click on See How much income you could need for each standard - on the detail page).
I can't see any notes / reference to the effects of inflation on that final fund.
I think I would be rather dispirited on starting a DC pension with, say, a salary of £30k (a figure above the average earnings number), if I was told I needed to accrue a sum equal to almost 20 times my annual salary to achieve a "comfortable" retirement.
Be interested to hear the comments of others.
https://www.retirementlivingstandards.org.uk/
"Retirement Living Standards - The standards show you what life in retirement looks like at three different levels, and what a range of common goods and services would cost for each level."
They are " the starting point to help you engage with your future lifestyle needs."
Apparently to have a comfortable lifestyle (for a single person), requires a (net after tax) income of £33k in retirement.
This doesn't include housing costs (mortgage or rent), amongst other things. It's assumed the mortgage is paid.
To achieve this comfortable retirement apparently requires (in addition to the State Pension), a DC pension fund of £587,116. This is shown on a separate table (click on See How much income you could need for each standard - on the detail page).
I can't see any notes / reference to the effects of inflation on that final fund.
I think I would be rather dispirited on starting a DC pension with, say, a salary of £30k (a figure above the average earnings number), if I was told I needed to accrue a sum equal to almost 20 times my annual salary to achieve a "comfortable" retirement.
Be interested to hear the comments of others.
Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
0
Comments
-
I think there is already a thread going on this:
https://forums.moneysavingexpert.com/showthread.php?t=6060190Think first of your goal, then make it happen!0 -
Alice_Holt wrote: »I came across this site:
https://www.retirementlivingstandards.org.uk/
"Retirement Living Standards - The standards show you what life in retirement looks like at three different levels, and what a range of common goods and services would cost for each level."
They are " the starting point to help you engage with your future lifestyle needs."
Apparently to have a comfortable lifestyle (for a single person), requires a (net after tax) income of £33k in retirement.
This doesn't include housing costs (mortgage or rent), amongst other things. It's assumed the mortgage is paid.
To achieve this comfortable retirement apparently requires (in addition to the State Pension), a DC pension fund of £587,116. This is shown on a separate table (click on See How much income you could need for each standard - on the detail page).
I can't see any notes / reference to the effects of inflation on that final fund.
I think I would be rather dispirited on starting a DC pension with, say, a salary of £30k (a figure above the average earnings number), if I was told I needed to accrue a sum equal to almost 20 times my annual salary to achieve a "comfortable" retirement.
Be interested to hear the comments of others.
It depends on how you define comfortable. If I wanted a retirement income of 33k pa net I'd have to work well into my 60s. No thanks.0 -
I think the figures for Comfortable (£33,000 single, £47,500 couple) are way too high - in my opinion £35k for a couple would be fairly comfortable. I think that would be achievable if it includes State Pensions for both parties.Alice_Holt wrote: »I think I would be rather dispirited on starting a DC pension with, say, a salary of £30k (a figure above the average earnings number), if I was told I needed to accrue a sum equal to almost 20 times my annual salary to achieve a "comfortable" retirement.
Be interested to hear the comments of others.
I also think the figures for Minimum are far too low (£10,200 single, £15,700 couple) as the £15,700 figure is less than two full State Pensions.0 -
I think the figures for Comfortable (£33,000 single, £47,500 couple) are way too high - in my opinion £35k for a couple would be fairly comfortable. I think that would be achievable if it includes State Pensions for both parties.
Yes I'd agree.
Especially as these don't include housing costs.
It implies that a much, much higher than average salary for a working age person / couple is needed for them to be "comfortably off" - since costs at that stage in life would include mortgage repayments, pension contributions, commuting to work, and (maybe) bringing up a family.
I fear that the thought of having to accrue such an (overly) large DC pension pot, to arrive at these numbers might dissuade people from trying. Whereas the more sensible number you quote could be achievable.
I didn't spot the other thread on this topic- apologies for the duplication.Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.0 -
I think the figures for Comfortable (£33,000 single, £47,500 couple) are way too high - in my opinion £35k for a couple would be fairly comfortable. I think that would be achievable if it includes State Pensions for both parties.
I also think the figures for Minimum are far too low (£10,200 single, £15,700 couple) as the £15,700 figure is less than two full State Pensions.
I couldn't work out why you need a budget of over 1k pa for clothes and shoes to be comfortable. I never spent anywhere near that much on those things even when I was earning good money.0 -
@joeengland, I agreed with you until I read it includes all of this:
Clothing and footwear budget
Cosmetics, toothbrush, toothpaste, shaving supplies, hair styling, beauty treatments (if applicable), suitcases, umbrellas
Dentist, opticians, podiatry, minor first aid (e.g. plasters, paracetamol)Save 12 k in 2018 challenge member #79
Target 2018: 24k Jan 2018- £560 April £26700 -
A successful retirement plan requires that you know your budget and have some spending discipline. We are all different and what is comfortable for one person might be penury for another. The amounts quoted in the article sound generous to me as I live on a lot less. However, being frugal while I was working as well as now that I'm retired means that I could live a caviar lifestyle with my pension pot, but I choose not to do that as I'm perfectly happy spending less and want to pass some money on to my heirs.“So we beat on, boats against the current, borne back ceaselessly into the past.”0
-
ive budgeted £12000 a year when i go early 4 years short of retirement . single no mortgage no kids just bills . that figure includes holidays as well . once the state kicks in i should be well off .0
-
@joeengland, I agreed with you until I read it includes all of this:
Clothing and footwear budget
Cosmetics, toothbrush, toothpaste, shaving supplies, hair styling, beauty treatments (if applicable), suitcases, umbrellas
Dentist, opticians, podiatry, minor first aid (e.g. plasters, paracetamol)
They have a strange definition of clothing and footwear!0 -
stronginthesun wrote: »ive budgeted £12000 a year when i go early 4 years short of retirement . single no mortgage no kids just bills . that figure includes holidays as well . once the state kicks in i should be well off .
I'm genuinely intrigued as to how you could manage on this and have holidays too? I see a lot of threads posted by people who have huge pension pots and it makes me feel thoroughly inadequate!0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards