According to a new study published by the UK’s Pensions and Lifetime Savings Association (PLSA), the living standard level required to enjoy a moderate retirement income has recently experienced an increase.
Over the last year, the cost of a moderate lifestyle when no longer working has risen for a single British retiree from £23,300 to £31,300 per annum.
To compensate for substantial shortfalls due to economic shifts, savvy savers in the UK often look to retirement planning specialists in Shropshire, Cheshire and other parts of the country for guidance. Retirement experts like wealth managers provide periodic reviews of plans, ensuring that they can still supply adequate income when their employment ceases, accounting for increases in the cost of living and other mitigating factors.
The increase recorded by the PLSA reflects the considerable increase in prices households have experienced, especially for energy use and food. The study also highlighted an increased importance for many people wishing to spend more time with friends and family out of the home, following the pandemic.
Britain currently has a “triple lock” that was introduced in 2010 under the then pensions minister, Steve Webb. It is designed to protect people from increased living costs in retirement. As a result, this year, those receiving retirement benefits from April onwards will enjoy an 8.5 per cent increase, rising to just over £11,500 per annum.
However, Mel Stride, the present Pensions Secretary, is not committed to the triple lock continuing indefinitely.
