How much income do I need in retirement?

By Rachel Efetha, Chartered Financial Planner.

How much income do I need in retirement? This is one of the questions that I get asked the most by clients, and the answer is ‘How long is a piece of string?’  It all depends on the kind of lifestyle you want in retirement.  I have some clients who have quite modest needs, no overseas holidays, and just need £1,000 pm, whilst at the other end of the scale I have a client who is planning to spend £12,000 per month. So, it will probably come as no surprise that the difference in their income whilst working was just as large.

However, I have recently been introduced to an excellent website-

 

https://www.retirementlivingstandards.org.uk/ which has an excellent rough guide as below:

And for a couple:

I personally think I would like more than 3 weeks in Europe every year, am not bothered about having a two-year-old car every five years or spending £125 on clothes every month and happy to spend less than £144 a week on food and eating out to give me more money for travel – or I could aim higher than the £37,300 to fund it, but at least with these figures, you can start to flesh out what retirement might look like for you.

The next conundrum?

The next conundrum is, how do you get to your chosen figure?  So you know you’re in a couple and want a comfortable lifestyle of £54,500 per year.  You’ve got half a dozen pensions worth between £1,000 and £40,000 each and you’re paying £100 a month in, with 20 years left until you retire and your spouse is in a similar situation.  What does it mean?  That’s where, as a Financial Designer, I can add value.

My job is to make sense of all your bits of paper and tell you what you need to do to achieve the retirement lifestyle that you deserve.  And it’s not as expensive as you might think, in fact, most of my clients are better off after having seen me as I’ve spotted somewhere that savings can be made on charges, or better performance to give a higher return.

If you’ve never engaged in Financial Planning before, give it a try, it will be worth it, I promise.

How Anstee & Co. can help to plan your retirement.

At Anstee & Co we are independent financial advisers (IFA’s). This means that we offer unbiased advice. We will look at all the financial options. Some financial advisers only operate from a limited panel or only sell their products and services. Why not arrange a meeting with us today? The initial “getting to know you” meeting is at our expense and is without obligations. The idea behind the meeting is so you can see how we work and how we can help you. It is about building relationships.

Our expertise covers all aspects of financial planning including pensions, investments, and mortgages.

If you have any thoughts or comments on this article, “How much income do I need in retirement?”, then it would be great to hear your views.

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. No action should be taken based on this information alone. Anstee & Co is authorised and regulated by the Financial Conduct Authority (FCA).