HOW WILL YOUR SPENDING CHANGE IN RETIREMENT?
Retirement represents a major lifestyle change; not only will you have more time to enjoy all those things you’ve never had time to do whilst you were working, you’ll also find that your spending habits will change too. To enjoy a comfortable old age means doing some in-depth thinking about how much you’ll need to spend under headings such as basic living costs, spending on your family, and most importantly, enjoying life to the full.
Those in their 60s are often thought of as wealthy baby-boomers, but research1 shows that many are managing- on a comfortable income rather living an extravagant lifestyle. With an average income of more than £20,900, they generally have a disposable income of around £337 a month to play with. A few (1.7%) have an income of over £75,000.
Household bills, food, utility bills, insurance account for most of a typical 60-year-old’s budget. However, travel, outings and spending time with their families and friends also figure largely in their budget planning. On average, they take one foreign holiday a year, with a lucky few (5.6%), enjoying four trips or more.
Money matters and the over 70s
Research shows that the average income of a 70-something is £21,617. Most of their spending goes on household bills such as food, utilities, insurance, and household goods. On average, they have £301 of disposable income each month. This group are not known for being big spenders, but they do like to use their spare cash for travel, eating out and groceries.
What is particularly noteworthy is that around 30% wished that they had saved more, 34% worry about saving money, and 28% worry about paying their bills. If you’re making plans for your retirement and would like some professional advice, then please get in touch. The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.
It is important to take professional advice before making any decision relating to your personal finances. Information
within this document is based on our current understanding and can be subject to change without notice and
the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored
investment advice and is for guidance only. Some rules may vary in different parts of the UK.