ARE you on track for a relaxing retirement or will you have to scrimp by in your golden years?
A typical retiree living outside London on their own needs an income of £12,800 a year to have a minimum standard of living, while it’s £19,900 for couples.
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The full state pension is currently £10,600 a year, leaving it up to you to plug the gap.
Knowing how to do this can be daunting, but even saving a little each month can make a big difference.
Tom Selby, head of retirement policy at AJ Bell, says: “Saving
in a pension is simply making an investment in your future self.
“If you don’t save enough by the time you retire, you’ll have to
drastically cut back on planned spending or risk running out of money.”
Sun Money has the below interactive flow chart quiz to find out if you’re saving enough – and suggests how to catch up.
Read further below for how much each income level could get you in retirement too.
What level of income would you like to have?
SINGLE
Minimum – £12,800
£54 a week on food, £580 a year on shoes and clothes,
no car, one week and one weekend holiday in UK a year, £20 on each birthday present for family and friends, some cash for home DIY and
decoration.
Moderate – £23,300
£74 a week on food, £791 a year on shoes/clothes, car replaced
every ten years, two weeks’ holiday in Europe and one weekend in UK, £34 on each birthday present for family and friends, some cash for tradesmen for the home
Comfortable – £37,300
£144 a week on food, £1,500 a year on shoes and clothes, car replaced every five years, three weeks’ holiday in Europe a year, £56 on each birthday present for family and friends, enough money to replace kitchen and bathroom every ten to 15 years.
COUPLE
Minimum – £19,900
£96 a week on food, £460 a year each on shoes and clothes, no car, one week and one weekend UK hol, £20 on each birthday gift for family and friends, some cash for DIY.
Moderate – £34,000
£127 a week on food, £791 a year each on shoes and clothes, car
replaced every ten years, two weeks’ holiday in Europe and one weekend in UK, £34 on each birthday present for family and friends, some cash for home maintenance and decor.
Comfortable – £54,500
£238 a week on food, £1,300 a year each on shoes and clothes, car replaced every five years, three weeks’ holiday in Europe each year, £56 to spend on each birthday gift for family and friends, enough cash to replace kitchen and bathroom every 15 years.
In other retirement news, one savvy Brit is £1,000 a year better off in retirement after two savvy moves to boost her state pension.
Meanwhile, a gran of four is going back to work until 74 or she fears she’ll end up homeless.
