The bare least you’ll need to live comfortably in retirement.

0

The bare least you’ll need to live comfortably in retirement.

In order to live well in retirement, UK pensioners may need as much as £33,000, but many people underestimate their demands.

Saltus ran a survey to see how accurate Britons’ estimates of how much money they’ll need in retirement are. According to Michael Stimpson, a partner at Saltus, the data revealed “a clear misconception about how much money is required for a decent retirement.”

Overall, 92 percent of respondents underestimated the amount of money they would need in retirement to live comfortably. The most unrealistic expectations were held by younger people and those with a lower net worth.

Even high-net-worth individuals in the UK, on the other hand, greatly underestimate how much money they will require for the retirement they desire, with the typical respondent making an error of over half.

“If anything, the perception gap between expectations of what will be needed and what will actually be needed will widen as life expectancy rises – living to 100 could become ordinary, and the implications on retirement planning could be enormous,” Mr Stimpson added.

“Rising life expectancy will have the greatest impact on millennials, who, according to our research, are the least realistic about what they will require in retirement.

“Not only does this emphasize the significance of having a solid financial plan in place, but it also demonstrates that it is never too early to begin investing in your future.”

The Pensions and Lifetime Savings Association (PLSA) developed their Retirement Living Standards to help people understand what their retirement living will be like at various income levels.

The PLSA looked at how much the average pensioner would need to spend on essentials like housing, food and drink, and transportation, and then how much money would be left over for things like holidays and leisure, clothing and personal care, and helping others to calculate the cost of retirement at a’minimum’,’moderate’, and ‘comfortable’ retirement lifestyle.

As the name implies, a’minimum’ lifestyle covers the requirements while leaving a modest amount of money for enjoyment and social gatherings.

To attain a’minimum’ retirement, a single retiree would need £10,900 per year, while a pair would need £16,700. Around three-quarters of employees are required to meet this baseline standard of retirement living.

This amount of money would cover a weekly food shop of £41 (or £67 for a pair), clothing costs of £410, and other expenses. “Brinkwire News Summary.”

Share.

Comments are closed.