Retirement Living Standards

Have you ever considered how much you will need as an income in retirement? The Pensions and Lifetime Savings Association (PLSA) published the Retirement Living Standards to help people answer this very question.

There are three levels:

1. Minimum (covers all your needs, with some left over for fun) — £10,900 per year for a single person and £16,700 for a couple which would cover a holiday in the UK, eating out once a month and some affordable leisure activities twice a week.
2. Moderate (more financial security and flexibility) — £20,800 per year for a single person and £30,600 for a couple which would provide, in addition to the minimum lifestyle, a two-week holiday in Europe and eating out
   a few times a month.
3. Comfortable (more financial freedom and some luxuries) — £33,600 per year for a single person and £49,700 for a couple which would achieve both the minimum and moderate lifestyles, plus extra luxuries such as spa days, theatre trips and those important holidays.

On the Scheme website you will find an interactive modeller. With this you can:

• Explore the three different Retirement Living Standards set by the PLSA;
• Increase or decrease the assumption for one or more of the six expense categories to create your own personal Living Standard; and
• Input the values of your current retirement savings to assess whether you have enough to fulfil your retirement aspirations.

To access the modeller, click or tap on the ‘Interactive tools’ button, which you will find at the bottom of each page on the Scheme website.