Most of us don’t actually imagine having a Ferrari or a second home on the Costa del Sol when we retire. It’s more likely that, in life after work, we’ll want to continue the lifestyle we’ve enjoyed while working.
Living with a partner can work out a lot less per person than living alone. The costs used in this calculator reflect that, so think about what your situation might be when you come to retire, and choose one of the options below.
Living costs in London and the South East are considerably higher than the rest of the UK and you should plan for that. Choose from the options where you think you will live.
To keep things simple, the Retirement Living Standards are levels – minimum, moderate and comfortable – which give you a sense of what different standards of living could cost you in life after work. They have been designed as a guide to help you set a target to aim for. Full details are available at retirementlivingstandards.org.uk
Roughly speaking, a will need about a year after tax to achieve a standard of living at retirement.
This figure is based on a ‘basket’ of common goods and services shown below. Using it as a starting point, if you think you would spend more, or less, simply change the weekly amounts to create a personal target.
These figures are based on the Pensions and Lifetime Savings Association (PLSA)/Loughborough University Retirement Living Standards.
The amounts in the orange blocks are the annual cost of each category. To change the amounts to suit your needs, edit the weekly breakdowns and the calculator will work out the annual costs and update the overall total.
Based on a basket of common goods and services, for a hoping to achieve a standard of living at retirement, you will need about a year.
These figures are only a rough guide to help give you a target to aim for. They are not a guarantee of the income you will need.
By changing the amounts in the basket of goods and services, you have created a personal target to aim for based on your individual wants and needs. This doesn’t mean it can’t change in the future, but knowing now how much you might need later is a great step towards being able to work out if your current level of saving will be enough.
The figures used in the retirement budgeting calculator are the property of the Pensions and Lifetime Savings Association (PLSA)/Loughborough University Retirement Living Standards, and have been used with the permission of the PLSA. Further information on the PLSA/Loughborough University Retirement Living Standards can be found here.
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