Summer 2023Has the definition of a comfortable retirement changed?

Whether you’ve got 20 years before you retire or just a few, it’s important to have an idea of just how much money you’ll need for a comfortable standard of living once you’ve finished working.

The amount individuals and couples need to enjoy a comfortable, moderate or minimum standard of living in retirement has risen by almost 20% in the past year.

Whatever stage you’re at on your saving journey, having a specific income in mind can help you focus and plan.

How much money do I need to retire?

For a minimum standard of living (with a weekly food budget of £54 and one week and weekend away in the UK each year), latest numbers show a single person now needs £12,800 a year, while a couple needs £19,9002.

Meanwhile, individuals need £23,300 a year for a moderate standard of living, while couples need £34,000. A moderate standard of living stretches to £74 a week on food, with two weeks in Europe and one long weekend in the UK every year.

For a comfortable standard of living (which includes three weeks in Europe yearly and a food budget of £144 each week), a single person needs £37,300 a year, while a couple needs £54,500.

Why do you need a financial adviser?

Advice can be invaluable here. In addition to looking at your cash flow and helping you work out how much you’ll need to live on, an adviser can help your retirement plans remain on track.

For those who are likely to retire relatively soon, the cost-of-living crisis and the stock-market volatility that has accompanied it will have been a major cause for concern.

For some, this will mean rethinking their retirement plans to a degree, delaying retirement can be an easy solution, but a more palatable one might be a phased retirement, winding down from work over a period of years, rather than a hard stop.

Your adviser will also be able to ensure that the risk profile of your investment portfolio (not just your pension) is at the right level for you and that it’s in the best position to serve you into retirement.

Get in touch

Even if you’re not overly concerned, it’s still worth having a regular check-in with your adviser. We can help you build a retirement plan that will give you a bit more flexibility.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

Sources 1 & 2: Rising Prices Add Almost 20% to the Cost of Retirement, Pensions and Lifetime Savings Association, January 2023.

About the writer
As director of Front Row Financial, Steven Worrall provides a truly holistic approach that demystifies financial advice and puts you in control, with tailored solutions and ongoing support to help you achieve your financial and lifestyle goals.