Retirement planning

Follow these steps to plan your retirement

Working out how much you need to live off in retirement can be tricky.

It is likely that you will have a different lifestyle when you come to retire, and so different expenses.

For example, the financial support you give to any children or other dependants may change, but you may have more time to go out and spend money.

The Department for Work and Pensions suggest that you might need the following levels of income when you retire, based on your earnings at work:

Earnings before retirement Suggested amount of income you might need
Less than £12,200 80% (£9,760 or less)
£12,201-£22,400 70% (£8,541-£15,680)
£22,401-£32,000 67% (£15,009-£21,440)
£32,001-£51,300 60% (£19,201-£30,780)
Over £51,300 50% (£25,650 or more)

Although this kind of table can be helpful, it’s worth thinking about your own circumstances and expectations for retirement. Consider what your expenses are likely to be (do you expect to have paid off the mortgage or downsized?) and how this will match your expected income (do you want to live off just your pension savings, or would you consider working in some way as well?). If you find you are not going to have enough money, you might want to think about how much you are saving and the age you plan to retire.

You can look at the Retirement Living Standards website to explore all of this in more detail at

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