Living costs in retirement
What will you have to spend money on in retirement? The answer will help you understand what your costs in retirement could be, and help you plan for your retirement. For example, will the income you expect to receive cover all your costs, or only the essentials?
Once you know what costs you’re likely to face, you can start to plan the decisions you need to make, or look for help or further guidance if you need it.
To get an idea of where your money needs to go, or your different types of income you can try categorising them. For example essential and non-essential costs, or guaranteed and variable incomes.
Your costs could include:
Things that you need to have:
Things that will make your retirement more enjoyable:
Things which though not essential, most people would consider critical:
Occasional but major costs
Unforeseen or major items like replacing a fridge or helping children with a housing deposit:
Your income could include:
Income that will be paid at regular intervals for the rest of your life, and might come from:
Known income that may come as one off amounts:
Income that could be used to cover important costs:
Other sources of income
Income sources that you might not be aware of in advance, such as:
Where can I find more help about this?
If you need help, guidance or advice to understand your future financial situation or to answer any questions you have, we recommend you take advantage of the free and impartial guidance offered by Pension Wise, or ask a financial adviser.
Ready to find out more?
Select one of the options below:
Or take a look at
Pension Options which looks at the different ways you can access your pension pot.