The numbers have been crunched (Picture: Getty Images)
Whether you’re on the cusp of adulthood, entering your 30s, dancing into middle age or about to hit 60, there’s one thing that everyone has in common: retirement will catch up with you one day.
For some, the thought of ditching the 6am Monday to Friday alarm can’t come quick enough, but for others, wondering how you’ll cope financially without your annual salary can be a daunting prospect.
In the UK, the current cost of living crisis is affecting a huge proportion of the population.
Back in January 2024, Statista revealed that over half of households reported their cost of living had increased compared with the previous year. But what does that mean for those about to retire?
In 2022, researchers at Loughborough’s Centre for Research in Social Policy created a set of three retirement living standards, detailing exactly how much money pensioners need to maintain each one.
The three standards are: minimum, moderate and comfortable. The higher you are on the scale, the easier your retirement will be financially.
Save as much as you can, for as long as you can (Picture: Getty)
The figures given can be achieved through various means, from simple savings accounts, to private pensions, to investment portfolios.
Unfortunately, in just two years these figures have jumped quite significantly, therefore future retirees will need to save/earn more than ever before to ensure they can get by.
Here, we’ve broken down these groups to give you an idea of where you might place (or where you may want to aim for) plus five tips on how you can boost your savings for a more comfortable future.
Disclaimer: the below numbers are how much an individual or couple would have to save to qualify for each bracket assuming they retire at 66, and is inclusive of the full state pension of £11,502 per year.
In addition, the research excluded London, as costs in the capital are obviously higher.
Minimum
A ‘dignified’ existence (Picture: Getty Images)
For some perspective, Loughborough University released their latest figure update in February 2024.
It revealed that the Minimum Retirement Living Standard had increased from £12,800 per year in 2022 to £14,400 for a single person, and from £19,900 to £22,400 for a couple.
That means a single person would need to have £2,898 saved per year of retirement, with the full state pension taking it up to £14,400 to live on annually.
If you were retired for 15 years, you would need savings of £43,470 overall on top of the state pension.
This ‘minimum’ category reflects a ‘dignified’ existence, covering basic survival needs (food, bills, etc.) but without the use of a car. Plus, a little disposable income set aside, specifically £95 for a week’s groceries, enough for a week’s holiday in the UK, two affordable leisure activities a week, and a meal out once a month.
Additionally, these numbers only apply to those who have paid off their mortgage, worked until the …read more
Source:: Metro
