As well as your age, your retirement planning strategy will be determined by a number of factors:
Is there a company pension scheme?
- Are you self-employed?
- How old are you?
- How much can you invest for retirement?
- How much state pension will you receive?
For a forecast of your state pension, phone the State Pension Forecasting Team on 0845 3000 168.
You can estimate your post-retirement living expenses at roughly 60-80% of your current living expenses. Studies have shown that, comparing people aged 45-54 and those aged 65 or more, the average reduction in expenses is:
| Personal care, heat and light and food | 35% |
| Housing and furnishings | 39% |
| Entertainment | 50% |
| Clothing | 56% |
| Insurance | 85% |
| Education | 88% |
While the above table represents an average some other questions may assist in helping you calculate what income you might need in retirement.
- Will your car costs now be payable by you personally instead of by the business?
- What additional personal costs will you incur? e.g. holidays
- Will your hobbies cost you money, or maybe earn some income for you?
- What family costs might you still incur? e.g. weddings, house deposits, grandchildren
- Will you continue to save?
