retirement look like in 2023?

By Paula Hurford, Wealth Management Consultant

Whether you’re planning to retire next year, or you’ve still got 20 years to go, it’s great to have an idea of how much money you may need to have a comfortable standard of living in retirement, particularly when this has risen by almost 20% in the past year alone.1

So, what does that comfortable retirement look like in 2023?

According to the Pension and Lifetime Savings Association, a minimum standard of living in retirement is based on £54 per week on food, one week and one weekend UK holiday per year. Individuals would need £12,800 a year, and couples would need £19,900 to reach this minimum.2

For a moderate standard of living (£74 per week on food, two weeks in Europe and a long weekend in the UK a year), a single person would need £23,300 whilst a couple would need £34,000 a year.

For those aspiring to live comfortably in retirement, with three weeks in Europe a year and £144 a week on food, you’ll need £37,300 a year as an individual and £54,500 for couples. All these figures are for the UK and exclude London.

Although these figures can be daunting, they are a good basis to work from. How much you personally need to live off will depend on how you want to live in retirement.

What can I do to help reach my retirement goal?

Asking for advice is an invaluable option. A financial adviser can look at your overall circumstances and help work out how much you will need. They can also help keep you on track to reach the goals you want to achieve.

Due to the current cost-of-living crisis and market volatility, those that are looking to retire soon might need to tweak their retirement plans. This might mean that winding down from work over several years is more suitable than stopping immediately or topping up your pension using a bonus.

If retirement is still a while away, it can still be unnerving to see the figures. Talking to an adviser can be helpful in giving you confidence to see the long-term view of your investments and ensure that you are in the right risk portfolio to suit you into retirement.

If you would like help in building your retirement plan and reaching your retirement goals, feel free to contact me on 01978 311611, or email paula. hurford@sjpp.co.uk.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.