We all want a good standard of living as we get older and retire.
A law introduced in 2012 obliges companies to integrate their employees into a company pension scheme so that they can build up their finances for their old age.
But for those at work, unemployed, or unable to work, the prospect of retirement can be daunting if you don’t have a decent pot of money.
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Experts at the Center for Social Policy Research at Loughborough University have come up with a minimum for people to retire to have an acceptable standard of living. So how much do i need to retire? We know this…
How much do i need to retire?
Loughborough University experts have developed three age levels: an acceptable minimum standard, a moderate standard, and a comfortable standard.
A single person would need £ 10,900 a year to meet a minimum standard. This increases to £ 16,700 for a couple. This category does not only include food, clothing and other essential items and goods. It also includes what you need to play a role in society.
The researchers said, “A ‘minimal’ lifestyle covers all of your needs, some of which are left for fun and social occasions.
“You could go on vacation in the UK, eat out about once a month and have affordable leisure activities about twice a week. Around three quarters of the employees should at least achieve the minimum standard. “
For a moderate standard of living, a single person would take home £ 20,800 a year, for a couple even £ 30,600.
The researchers said, “A ‘moderate’ lifestyle offers more financial security and more flexibility.
“You could go on vacation abroad a year and eat out a few times a month. You would have the opportunity to do more of the things you want to do. Around half of the employees should have an income between minimal and moderate. “
Those in the comfortable category take home £ 33,600 a year or £ 49,700 if there are two of them.
The researchers said, “A lifestyle that allows you to be more spontaneous with your money.
“You could have a subscription to a streaming service, regular beauty treatments, and two overseas vacations a year. Around every sixth employee is expected to have a medium to comfortable income. “