How long your savings will need to last
How long do you think you’ll spend in retirement? People tend to underestimate the length of their retirement, but research carried out by the Office for National Statistics in 2015 shows us that people are living longer now than ever before:
- People who are 55 today are likely to live into their eighties.
- Around 1 in 10 men, and 1 in 5 women, who are aged 55 now will live to see their 100th birthday
This means that your savings may need to last longer than you think. Use the Office for National Statistics tool to see what this might mean for you.
How much will you need in retirement?
It’s a good idea to think about what you’ll need to spend in retirement and it helps to create a goal to work towards. It’s not just about adding up your day-to-day expenses, you’ll need to give some thought to how you’ll spend your time in retirement and what that could cost. Legal & General's 'How much will you need?' tool can help you work out how much income you'll need.
The retirement living standards from the Pensions and Lifetime Savings Association show you practical guidance to help you work out what your retirement might cost based on three lifestyles.
What does this mean for me?
The guidance describes three different standards of living: minimum, moderate and comfortable. They provide you with information about the costs in retirement and cover everyday living expenses and lifestyle choices such as food, drink, travel, fun and luxuries such as holidays.
The standards capture couples and individuals and fit into the retirement income brackets of roughly: £11k - £21k - £34k for individuals and £17k - £31k - £50K for couples. This provides a useful ‘rule of thumb’ of how much money you’ll need each year in your retirement to support the way you want to live.
Find out what your future might look like at retirementlivingstandards.org.uk
You can also use our 'How much will you need?' tool to help you work out how much income you'll need.