A recent survey from the Pensions and Lifetime Savings Association has found that 77% of savers don’t know how much money they’ll need in retirement, demonstrating a need for clearer guidance to help savers to engage with their pensions*.

Help is at hand

Recently, the PLSA published its Retirement Living Standards, which outline three levels of annual expenditure that retirees would need to attain three different standards of living in later life.

The Standards demonstrate what a ‘minimum’, ‘moderate’ and ‘comfortable’ lifestyle might look like (e.g. what a person or couple might be able to afford in terms of holidays, social activities and other luxuries), and the estimated yearly income required for each. For single people, around £10k would be needed for a ‘minimum’ lifestyle, £20k for a ‘moderate’ retirement and £30k to be ‘comfortable’. For couples, the figures increase to around £15k, £30k and £45k, respectively.

A new industry standard?

The PLSA’s vision is that 90% of active savers will belong to a pension scheme that includes the Standards in communications with its members by 2025.

Look to the future

If you are unsure about how much you should be saving to live comfortably in retirement, or need assistance to plan for the future, please get in touch.

*PLSA, 2019