Posted on: 18th October 2019
This is a question we all yearn to answer, yet we do not ever really know until we are fast approachingand understand what standard of living we would like into our retirement. But do not fear – researchers at Loughborough University and the and Life Association have produced a report to help people understand what is required for differing levels of quality of life and what is required for a comfortable retirement.
Stateis not enough
The research obtained views from 26 group discussions with the a selection of the general public across the socio-economic scale and life cycles, alongside expert analysis to determine what each level of retirement meant and what the costs associated with the different aspect of living were such as the amount needed for nutritional needs, utilities, transport etc.
Whilst most retirees will be eligible for a full state, currently set at £8,767, the research shows that a single pensioner will require a further £2,500 per annum to achieve a minimum quality of living and couples may survive on their joint state .
Credit: Loughborough University, DevelopingLiving Standards, October 2019
Whilst £20,200 per annum may seem like an unattainable goal, this level of research and the introduction of auto-enrolment will assist in quantifying what retirement costs and what is achievable through early changes in thejourney.
Achieving subjective aims objectively
Lead author Matt Padley, of Loughborough’s Centre for Research in Social Policy (CRSP), said: “This pioneering research for the first time looks at what the public agree you need for different standards of living in retirement.
“We’ve known what society agrees is needed at the minimum for a long time now, but we now know what the public think you need for a moderate and a comfortable living standard as well.
“This is important as there is currently very little to guide people in thinking about, planning and saving for retirement.
“It’s all very well saying ‘I want a comfortable retirement’, but what does this look like and how much will I need to spend to have this living standard?
“Through our detailed discussions with the public, we have explored just what this means. The research started by asking groups of members of the public to define these different levels and their key features.
“A lot of this was about having greater security, flexibility and more choice in retirement than at a minimum living standard.”
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