Retirement living standards
Many people don’t save enough for retirement because they don’t know how much money they’ll need when they stop working.
Affordability and cost of living also play a part.
You can use the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards to work out how much money you’ll need in retirement, and how much you need to save now to reach that target. This should help you achieve your desired level of financial security, flexibility and freedom once you retire.
Will you have enough?
As part of these Retirement Living Standards, the PLSA has outlined the income you’ll need in order to achieve three potential standards of living.
PLSA Retirement Living Standards - Income Levels
At the minimum level you will have covered all your needs, with some money left over for fun. The moderate standard of living gives you more financial security and flexibility, with the comfortable outcome providing more financial freedom and some luxuries.
PLSA Retirement Living Standards - Income Levels
Minimum | Moderate | Comfortable | |
Single | £14,400 | £31,300 | £43,100 |
Couple | £22,400 | £43,100 | £59,000 |
These figures will change in future as the cost of living increases. Deductions have also been made for income tax – you can check this for the current tax year and see what the UK government allows people to earn before they start paying income tax.
Find out more
To find out more about the standards and the goods and services you’d be able to afford go to the PLSA website.
Remember
You should consider other possible income sources apart from your Schroders Retirement Benefits Scheme pension, like the State Pension, or benefits from any previous or future employers, when you review your retirement income. This way you’ll be able to decide whether you’re on track for the retirement you want, or whether you need to save more.