13 Nov 2019

This is how much money you need to save to retire comfortably

This is how much money you need to save to retire comfortably

Do you know how much money you would need to enjoy a minimum, moderate or comfortable retirement?

Probably not, but help is at hand.

New retirement living standards designed to help people picture the lifestyle they want when they stop work - and understand the cost - have just been published.

The Pensions and Lifetime Savings Association (PLSA) says that a single person will need around £10,200 a year to achieve a minimum living standard, £20,200 for moderate, and £33,000 a year for comfortable.

For couples, the equivalent figures are £15,700, £29,100 and £47,500.

PLSA says the standards cover a range of goods and services that are relevant for the majority of people. Currently most people when they reach retirement do not have mortgage, rent or social care costs. But these, and other costs such as tax on pension income, may need to be added depending on an individual's circumstances.

Minimum living

This standard covers all your needs plus enough for some fun - including social participation and social occasions. For example, you could holiday in the UK, eat out about once a month and do some affordable leisure activities about twice a week.

Moderate living

This lifestyle provides, in addition to the minimum lifestyle, more financial security and more flexibility. For example, you could have a two-week holiday in Europe and eat out a few times a month.

Comfortable living

At this level, retirees could also enjoy some luxuries like regular beauty treatments, theatre trips and three weeks in Europe a year.

Nigel Peaple, director of policy and research at the PLSA, said: "The retirement living standards will support better saver engagement. They distill robust, in-depth research with the public into an easy-to-understand basket of goods that helps people picture the future - and relatable figures that can provide a powerful and practical tool for encouraging engagement with saving.

"A recent PLSA survey showed 76% of people with a workplace pension agree that retirement living standards would help them know if they were on track for the lifestyle they want in retirement.

"The PLSA looks forward to working closely with the pensions industry to ensure widespread adoption of the retirement living standards to transform the way people think about saving for spending in later life.

Speak to an expert about retirement planning

If you would like to speak to one of our advisers about planning for your retirement, click here.

Please correct the errors below before submitting your request:

Get in touch

Our dedicated client contact team prefer to receive enquiries through our contact form. We'll endeavour to get back to you within 24 hours or during the course of the next working day.

Tick this box if you wish to receive news and offers from Aberdein Considine. By doing, you indicate your consent to receiving targeted email marketing messages from us. On each occasion that we contact you in the future, you will be given the option to opt-out from receiving such messages. You may also email marketing@acandco.com at any time to opt-out.

The personal information that you provide to us in this form will only ever be used by Aberdein Considine (as the Data Controller) for the following specifically defined purposes:

  • email you content that you have requested from us
  • with your consent, occasionally email you with targeted information regarding our service offerings
  • continually honour any opt-out request you submit in the future
  • comply with any of our legal and/or regulatory obligations