Business & Investment

The pandemic boosts the cost of a comfortable retirement by £ 2,200!

Image Source: Getty Images

NS Pension and Lifetime Savings Association We just confirmed what we all think. The pandemic means that things will cost more when it comes to retirement.The report found that couples who want to achieve a comfortable standard of living in their retirement have to pay. £ 2,200 Extra year.

The cost of retirement is high

It’s hard to dodge all the headlines that tell us that living expenses are rising. Soaring energy prices and rising taxes mean that daily costs are rising.

However, consumption habits have changed over the last few years. Retirees want more money for eating out, a higher personal grooming budget, and, of course, the most important Netflix subscription!

So how much money do you need? PLSA divides the standard of living into three levels: minimum, moderate and comfortable. This is a breakdown of the annual budget adjustment proposed by PLSA in 2021.

Minimum retirement standard of living

This standard of living includes a week’s vacation in the UK, eating out about once a month, and affordable leisure activities.

One person’s budget has increased by £ 700 since 2019 to £ 10,900. For couples, it will increase by £ 1,000 to £ 16,700.

Moderate post-retirement standard of living

It’s one layer above, adding a bit more financial security and flexibility. So consider taking a two-week vacation in Europe and eating out several times a month.

To achieve this, one person is looking at an annual budget of £ 20,800 (up £ 600 from 2019), and the couple needs £ 30,600 (up £ 1,500).

Comfortable retirement standard of living

This is where a little luxury begins, such as regular cosmetology treatments and theater trips. However, this standard of living is also seeing the biggest cost increases for couples.

One person needs to budget an additional £ 600 for an annual income of £ 33,600.But the couple is watching £ 2,200 For more £ 49,700.

Future plans

You may want to push your pension ideas to one side, especially if you have other, more pressing demands on your money.

However, starting early and planning retirement savings can make a big difference later in life. Therefore, it is important to think about what standard of living you want to achieve when you finally quit your job.

Here are some important points to consider:

  • National pension: First of all, it is useful to know how much National pension You have the right.You can get a quote using the calculator above website..
  • Pension pot: If you don’t know how much you already have, it’s hard to keep track of your retirement savings. Therefore, it is advisable to check the pension pots to see what growth trajectory they are on.
  • Plan in advance: Think about how much money you really want to retire. This means that you need to think about when you want to retire and how long you want to live each year.

If you don’t know where to start, it’s a good idea to talk to an independent financial adviser.

Unbiased An online directory that seems to match you with your local financial adviser. Advisors can let you know if you need to change your pension plan to achieve a standard of living after retirement.

Can you be rewarded for your daily spending?

Reward for credit card Include a scheme where you can get paid just by using your credit card. You can earn points, voucher air miles in the store, etc. by spending money on reward cards. With The Motley Fool, it’s easy to find the right card for your spending habits, so you get the most value from your rewards.

Was this article helpful?


Some offers on The Motley Fool UK site are from partners. Here’s how we make money and keep this site going. But does it affect our reputation? No. Our commitment is you. If the product is not good, our rating reflects it or we do not list it at all. We also aim to showcase the best products available, but we do not review all the products on the market. Click here for details.. The above statement is for The Motley Fool only and is not provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s Board of Directors. Motley Fool UK recommends Barclays, Hargreaves Slan’s Down, HSBC Holdings, Lloyds Banking Group, Mastercard and Tesco.

The pandemic boosts the cost of a comfortable retirement by £ 2,200! The pandemic boosts the cost of a comfortable retirement by £ 2,200!

Back to top button