The Pensions and Lifetime Savings Association (PLSA) have developed the Retirement Living Standards to help us to picture what kind of lifestyle we could have in retirement. The standards show you what life in retirement looks like at the three different levels, and what a range of common goods and services would cost for each level.
Explore them below:
Required annual pension income:
£22,400 – £43,099
In summary:
A ‘minimum’ lifestyle covers all your needs, with some left over for fun and social occasions. You could holiday in the UK, eat out about once a month and do some affordable leisure activities about twice a week.
Average monthly spend: £1,858
DIY £100 a year to maintain condition of your property.
Average monthly spend: £531
Around £95 a week on groceries, £50 a month per couple on food out of the home, £30 a month per couple on takeaways.
Average monthly spend: £549
No car, £15 per week for the couple on taxis, £100 per year per person on rail fares.
Average monthly spend: £90
A week long UK holiday. Basic TV and broadband plus a streaming service.
Average monthly spend: £304
Up to £630 for clothing and footwear each year.
Average monthly spend: £334
Twenty four gifts of £20 each year and £50 per person a year for charity donations.
Average monthly spend: £50
Required annual pension income:
£43,100 – £58,999
In summary:
A ‘moderate’ lifestyle provides more financial security and more flexibility. You could have one foreign holiday a year and eat out a few times a month. You’d have the opportunity to do more of the things you want to do.
Average monthly spend: £3,605
£500 a year to maintain condition of your property, £300 contingency.
Average monthly spend: £871
Around £100 a week on groceries, £60 a week per couple on food out of the home, £20 a week per couple on takeaways, £100 a month to take others out for a monthly meal.
Average monthly spend: £980
3 year old small car, replaced every 7 years, £20 a month on taxis per household, £100 a year on rail fares per person.
Average monthly spend: £379
A fortnight 3* all inclusive holiday in the Med and a long weekend break in the UK. Basic TV and broadband plus two streaming services.
Average monthly spend: £643
Up to £1,500 for clothing and footwear each year.
Average monthly spend: £556
£30 for each gift, £200 per household a year for charity donations. £1,000 for supporting family members e.g. paying for grandchildren activities, treats, trips etc.
Average monthly spend: £176
Required annual pension income:
£59,000 +
In summary:
A lifestyle that allows you to be more spontaneous with your money. You could have a subscription to a streaming service, regular beauty treatments, a foreign holiday and several UK minibreaks a year.
Average monthly spend: £4,911
£500 a year to maintain condition of your property, £300 contingency.
Average monthly spend: £1,128
Around £100 a week on groceries, £60 a week per couple on food out of the home, £20 a week per couple on takeaways, £100 a month to take others out for a monthly meal.
Average monthly spend: £1,262
3 year old small car, replaced every 7 years, £20 a month on taxis per household, £100 a year on rail fares per person.
Average monthly spend: £452
A fortnight 3* all inclusive holiday in the Med and a long weekend break in the UK. Basic TV and broadband plus two streaming services.
Average monthly spend: £1,317
Up to £1,500 for clothing and footwear each year.
Average monthly spend: £602
£30 for each gift, £200 per household a year for charity donations. £1,000 for supporting family members e.g. paying for grandchildren activities, treats, trips etc.
Average monthly spend: £150
