Research shows that an average £15,000 a year is needed to fund holidays, motoring and hobbies in retirement. How close will you be to achieving this ‘magic figure’?
Holidays and weekends away… clubs and classes… days out and trips in the car… it all adds up. How much would it cost you to fund the kind of retirement you’re hoping for?
A study of people over age 40 found that two thirds have some idea how they would like to spend their retirement years – and an annual income of around £15,000 is needed to support the lifestyle they’d like. For a couple, this means nearer £30,000 a year is required.
We’re not talking about expecting to live the high life. Researchers found that the average Brit intends to go on three holidays a year – one of them abroad – run a car and enjoy some activities and hobbies in their new-found spare time.
The study looked at what you might expect from a typical year during their retirement and how much this could add up to:
- One holiday abroad – £950
- Two breaks in the UK – £634
- A further three mini-breaks – £532
- Hobbies such as attending classes, playing golf or joining a gym – £2,114
- Visiting family and treating children and grandchildren – £1,156
- Running a car – £2,044
- Healthcare and insurance – £308
- Household bills, food and essentials – £6,447
Your state pension is unlikely to cover everything you want to do during your retirement, so it’s important to have a financial plan in place to provide these additional funds.
Are you on target for the kind of retirement you want?
We can help you gain an idea of the estimated future value of your personal pension plans – and also help work out how much more you might accumulate by changing the amount you save each month.
It is essential to try and focus your thoughts – you do not need an accurate picture of your income during retirement, but it is important to have a rough idea of whether your expectations are realistic.