The Pensions and Lifetime Savings Association says the minimum income needed to fund retirement has fallen.<\/p>\n
The PLSA publishes annual \u2018retirement living standards\u2019 levels to give the public a generalised indication of what income levels they might need in retirement.\u00a0\u00a0According to the PLSA\u2019s\u00a0figures, a minimum annual income level required for a retiree is now \u00a313,400 a year \u2013 down \u00a31,000 on 2024 \u2013 while for couples it is \u00a321,600, down \u00a3800 from last year. The PLSA says this is\u00a0largely thanks to falling energy costs.<\/p>\n
The association models three standard retirement living standard scenarios, including the minimum.\u00a0\u00a0For a \u2018moderate\u2019 retirement income, single retirees need \u00a331,700 a year, while couple require a joint income of \u00a343,900. These figures have increased by \u00a3400 and \u00a3800, respectively, on the year before.\u00a0\u00a0The income per person is less for couples, as many costs, such as household bills, are shared.\u00a0\u00a0In order to live a \u2018comfortable\u2019 retirement, single retirees currently need an annual income of \u00a343,900, while couples must earn \u00a360,600. These figures are up \u00a3800 and \u00a31,600 respectively on 2024.<\/p>\n
Zoe Alexander, director of policy and advocacy at the PLSA, said; \u201cWe\u2019re not just seeing changes in costs, we\u2019re seeing changes in how retirees live. Retirement isn\u2019t a one-size-fits-all experience. The Standards recognise that retirees can share costs, often with a partner, and that can make a huge difference to affordability in later life.\u201d<\/p>\n
The figures incorporate key lifestyle costs such as holidays and leisure, clothing and personal care and gifts for others.\u00a0However, they exclude housing costs such as rent and mortgages. Broadly speaking, the PLSA compiles the standards on the basis that most retirees are homeowners.<\/p>\n
Why does this matter to me?<\/strong><\/p>\n Retirement income is an essential aspect of long-term financial planning. These figures are general and designed to help people visualise what they might need in retirement to live different levels of lifestyle.\u00a0For those for whom retirement is still some way off, it is important to remember that these figures will look different in the future \u2013 thanks in large part to inflation.\u00a0For anyone closing in on accessing pensions and even the state pension, the Standards can provide a useful rule of thumb when considering how they intend to generate a sustainable retirement income.<\/p>\n It is important to work with a financial planner to consider the best approach to maximising your long-term income potential and planning for a financially sustainable retirement.<\/p>\n","protected":false},"excerpt":{"rendered":" The Pensions and Lifetime Savings Association says the minimum income needed to fund retirement has fallen. The PLSA publishes annual \u2018retirement living standards\u2019 levels to give the public a generalised indication of what income levels they might need in retirement.\u00a0\u00a0According to the PLSA\u2019s\u00a0figures, a minimum annual income level required for a retiree is now \u00a313,400 a year \u2013 down \u00a31,000 on 2024 \u2013 while for couples it is \u00a321,600,…<\/p>\n