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What are you aiming for?

Which standard of living are you aiming for in retirement?

The information below gives you a picture of what different standards of living look like and what income they are based on.

Minimum

Enough to cover all of your basic needs and still leave you a little bit more for fun, such as:

  • DIY maintenance and decorating one room a year,
  • a weekly food shop of £41,
  • short holidays in the UK,
  • no car,
  • £410 for clothing and footwear each year, and
  • enough to spend £10 on each birthday present.

Moderate

Enough to give you more financial security and flexibility than the minimum standard of living such as:

  • some help with maintenance and decorating each year,
  • a weekly food shop of £47,
  • a two-week holiday in Europe, and a long weekend in the UK, and
  • a three year old car, replaced every 10 years,
  • £730 for clothing and footwear each year, and
  • a £30 budget for each birthday present.

Comfortable

Enough to give you more financial freedom and some luxuries, such as:

  • replacing the kitchen every 10/15 years,
  • a weekly food shop of £59,
  • a two year old car, replaced every five years,
  • a three-week holiday in Europe each year,
  • £1,200-£1,500 for clothing and footwear each year, and
  • a £50 budget for each birthday present.

Visit PLSA’s retirement living standards website so see what else minimum, moderate and comfortable standards of living would include.

How much retirement income do I need for each standard of living?

Minimum

An income of around £10,900 a year if you are single, or £16,700 between you if you are a couple.

Moderate

An income of around £20,800 a year if you are single, or £30,600 a year if you are a couple.

Comfortable

An income of around £33,600 a year if you are single, or £49,700 if you are a couple.

These figures assume that you have paid tax on your income already, so when it comes to planning how much you’ll need to enjoy the standard of living that you want in retirement, don’t forget that you’ll have to pay tax.

Don’t forget the state pension

At the moment the full state pension is £9,339.20 a year once you reach your state pension age.

If you’re entitled to the full state pension that would go most of the way to making sure you had enough income in retirement to have the ‘minimum standard of living’.

You can see how much state pension you are entitled to by going to gov.uk/check-state-pension

The pension or savings that you build up with Nestlé (and any other pension savings that you have elsewhere) will help to provide you with the rest of the income you’ll need when you stop working.