Do you know how much income you’ll need in retirement?

We all have different goals for retirement, but one thing we all have in common is to achieve the perfect retirement, which might look different for different people.

To do this, plenty of planning and important decision making is needed to ensure we have the financial backing to live the lifestyle we want.

Terry, our Director and Chartered Financial Planner, has taken a look at some recent studies around retirement and broken down what this means for you.

So, how much will you need to have a comfortable retirement?

The Pensions and Lifetime Savings Association (PLSA) recently reported that, on average, you will need £31,300 a year for a moderate lifestyle which is an £8,000 increase on last years figure.

The figure for couples also saw a similar increase of £9,000 on last year, with them now needed £43,100 a year.

Reports from the International Longevity Centre have also shown that anyone born after April 1970 in Britain could be working until they are 71 – five years longer than the threshold if you were to draw a state pension today.

Some say that the state pension age may need to be raise to 70 or 71 to “maintain the status quo of the number of workers per state pensioner”. However, it’s important to note that the state pension age is not the age you can retire – there is technically no limit on this. The minimum age you can draw from personal pensions is currently 55, but that too is set to rise, changing to 57 by 2028.

What does all this mean for you aim for financial freedom in the future?

Circumstances are constantly changing, so you need to be able to adapt your plan when any unforeseen events occur, such as the recent global pandemic and current cost of living crisis.

Retirement planning can be extremely overwhelming, even before you consider the everchanging economic climate. That’s why we’d always recommend getting professional advice from a regulated financial planner, so that you can have the peace of mind that you are making the right decisions for your future and will be able to be proactive when it comes to hard times.

Here at Wealth Experts, we can help with pension savings, investments and managing your exposure to risk, so if you need assistance with your journey to financial freedom, please don’t hesitate to get in touch with one of our team here.