Daniel Stansall, IFA Barnet – How much pension do you need to retire on?

Thursday 27 April, 2017

Daniel Stansall, Independent Financial Adviser, Barnet, and member of the North London financial planning team reviews a recent survey in Which? magazine and how it can be useful for anyone working out their expenditure in retirement.

How much retirement income do you need?

A recent study from Which? magazine which collates the views of retired Which? members confirmed that households were spending just under £2,200 per month or approximately £26,000 per annum in retirement.  
According to Which? the amount covers households for basic expenditure and some luxuries,  for example European holidays, meals out and hobbies and leisure activities.  For households wanting to do long-haul travel and renew their car every five years the figure rose to £39,000 per annum.

The Which? study found that the cost of travelling and holidays were a very substantial part of the household budget, and as people got older they were spending more on utility bills, insurance premiums and their health, than food and drink, household payments and leisure activities.

Daniel Stansall, independent financial adviser, Barnet, North London said:

‘This survey is particularly interesting for anyone doing retirement planning who wants to work out how much pension they require in retirement.  The Which? survey confirms the views of our own clients that many people overestimate how much money they will need to live on in retirement.  When we meet clients they often budget for their retirement using their current salary or spending levels, but according to Which? the general consensus is that you will require between half and two thirds of the final salary you had when you worked after tax to maintain your lifestyle in retirement.  Remember you may have paid off your mortgage by then, and are unlikely to be bringing up young children or spending money commuting to work.’

Daniel Stansall, independent financial adviser, Barnet, North London said:

‘The Which? figures confirm why we recommend all our clients have a customised  Lifetime Financial plan so our independent financial advisers can model your current and future income and expenditure to achieve your desired lifestyle in retirement.  It is difficult for clients to imagine how they will be living in retirement and the types of activities they will be doing, but using the Which? survey offers a starting point.   When our Lonsdale financial consultants offer independent financial advice we recommend saving for a pension as early as possible.  Read Daniel Stansall, Barnet IFA – Why you should regularly save into a pension,  and review our Retirement Options guide – Freedom & choice: before, at and in retirement.’ This brochure recommends what decisions you should make regarding your pension planning at different stages of your life.’

'The Financial Conduct Authority does not regulate Cash flow modelling'

Review the Which? survey in full 

 

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