New research from academics has revealed that to meet the minimum UK standard of living, a single person will require an annual post-tax income of around £10,900. For couples, this spending budget will increase to £16,700.
The comprehensive research has been updated to reflect the expenses of contemporary living and, for the first time, includes haircuts and streaming subscriptions to popular platforms like Netflix.
According to the study, the lockdowns experienced in the UK since March 2020 had given many an idea of what their retirement needs might involve. With people spending far more time at home, they were made aware of the additional resources and finances required to experience quality of life.
The study’s calculations for living standards during retirement were pitched at three specific levels. These included comfortable, moderate and minimum.
The research is intended to urge people to focus on their retirement plans and ensure they are adequately saving for the future. This may involve maximising their employer contributions to a workplace pension or making well-informed investments.
The assessment has been produced as a guide for retirement saving, but housing costs have not been included. The study assumes that the majority of pensioners will have successfully paid off their mortgages. However, researchers commented that this exclusion from the calculations would be reviewed in the future.
Savers concerned about their standard of living after they stop working and retirement planning in Chester, Birmingham and other UK areas will find wealth managers an excellent resource for advice.