Working out how much money you’ll need for retirement can be tricky. It can help to think about how you might want to live when you retire. The Pensions and Lifetime Savings Association has developed a set of Retirement Living Standards to help you imagine the retirement you want and work out how much it will cost.
What are the standards?
The three Retirement Living Standards are based on independent research by Loughborough University, with different annual target incomes for single people and couples:
- A minimum standard covers all your needs with some left over for fun.
- A moderate standard means you are more financially secure and flexible.
- A comfortable standard gives you financial freedom and some luxuries.
Getting the retirement lifestyle you want
Understanding how much money you need is the first step towards getting the retirement lifestyle you want.
You can then work out how much you are likely to have if you continue saving at your current rate. Your retirement income may come from lots of different places, including your Vodafone pension, your State Pension, any retirement savings you have with other employers, your property or even inheritance.
If you log in to your LifeSight Account you’ll be able to see how much you have already saved. You can also use the ageOmeter tool to work out your LifeSight Age which will tell you when you will have enough put away to fund the retirement lifestyle you want. The Retirement Living Standards are already built in to the ageOmeter tool.
For more information about your State Pension entitlement visit the Government’s Your Pension website.
If you need to trace a pension from an old workplace you can use the Government’s Pension Tracing Service.
You can find out more about the Retirement Living Standards on the dedicated website.