How much does the average person spend in retirement?

As financial advisers, we are often asked by those approaching retirement, “How much money do most people spend in retirement?” A study in partnership with Loughborough University offered valuable insights into this question.

This question has always been challenging because everyone has different desires and lifestyles in retirement. As a result, the research has been divided into different sections: minimum, moderate, and comfortable lifestyle. The amounts also vary for a single person versus a couple and those living in London versus the rest of the country. This provides 12 different options to consider, covering the majority of situations.

Below are the outcomes from the latest findings in 2023:

The overview figure is a great starting point for understanding your needs. This can be further broken down into different areas, indicating which level might be closest to your situation. Below is a summary for each main area, including house maintenance and weekly shopping. This gives more context into each area and highlights what sort of lifestyle one can have at each level.

For further information and a deeper dive into the Retirement Living Standards, you can visit the website: https://www.retirementlivingstandards.org.uk/

Everyone’s financial circumstances are unique. The Retirement Living Standards serve as a practical, rule-of-thumb guide based on typical costs for many people in retirement. They are the first step on the journey: you might want to consider using them to develop your own personal target for retirement planning. This practical approach can help you feel reassured and confident in your retirement planning.

Ultimately, the Retirement Living Standards are a valuable tool to assist individuals in effectively planning and budgeting for retirement, enabling them to achieve the lifestyle they desire without experiencing financial strain.

Considering your unique circumstances and options is essential, and discussing these with your Beechwood adviser is recommended. They will collaborate with you to determine the best course of action tailored to your specific needs and goals.