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“The good news is that through a combination of the full State Pension and auto-enrolment in a workplace pension, the minimum level should be achievable for most people.” “It’s vital to realise that building a decent retirement pot means being engaged with the process early on.” “There’s still a long way to go in terms of raising awareness,” says Tony Clark, Head of Retirement Marketing at St. Given that the average amount sitting in pension pots after a lifetime of saving is £59,224 2, many retirees may be shocked to learn how little income their savings will provide. This is if you want to turn your pension into an annuity, which pays you a guaranteed annual income for life in retirement. Reality checkĪssuming you qualify for the full State Pension of £9,339 a year, the PLSA says you’ll still need to build up a pension pot worth at least £599,667 to achieve a comfortable retirement 1. For example, you could have a two-week holiday in Europe and eat out a few times a month.Īt the comfortable level, retirees could enjoy some luxuries like regular beauty treatments, theatre trips and three weeks in Europe a year.īy giving savers a general figure that they can understand, the hope is that savers can then start to develop their own personal targets based on their individual circumstances and aspirations. The moderate lifestyle provides, in addition to the minimum lifestyle, more financial security and more flexibility. For example, you could holiday in the UK, eat out about once a month and do some affordable leisure activities about twice a week.
#Average monthly expenses in retirement plus
The minimum living standard covers most people’s basic needs plus enough for some fun - including participation in social occasions. As your needs decrease or increase, your plan and its cost do too. This gives you the chance to live the life you want while only paying for the care you need.According to the trade association, a single person will need £10,200 a year to achieve the minimum living standard, £20,200 a year for moderate, and £33,000 a year for comfortable. Because we provide custom care that is designed to meet your specific needs, you only have to pay for the services you need. If you’re looking into one of our assisted living or memory care communities, our personalized service system is one of the many ways that can affect your costs. If you need more specialized care like memory care, you can probably expect to pay more than someone who is moving into an independent living community where there are convenience services but no care is provided. The cost also varies depending on the type of care you need. Have I always dreamed about living on a golf course, or am I okay with choosing a community that has a golf course within driving distance? Is it a priority for me to live in a trendy, desirable city, or would I be just as happy in a more rural or suburban town?
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If you want to adjust the total cost of senior living, you can ask yourself questions like:ĭo I really want a private, two-bedroom apartment, or would I rather pay less for a companion suite and live with a roommate? We know that the cost of senior living may come as a surprise to some people, but what if you could raise or lower that price based on your individual circumstances?
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You may be surprised to learn that senior living may be more affordable than you think. So before you write off senior living communities because you think they’re too expensive, add up your monthly expenses and see how that total compares to the cost of communities in your area. Some communities even have their own general stores, ice cream parlors, fishing ponds and golf courses near campus. Most of your ordinary expenses are included in your monthly fee-and you get to enjoy things like housekeeping and laundry services, educational workshops, interesting classes, happy hours and ice cream socials, and fun-filled excursions with people who like the same things you do.Īnd we haven’t even touched on the on-campus amenities like swimming pools, gardens, beauty and barber shops, transportation services and more. That’s what happens when you live at a senior living community. Now imagine wrapping all of those costs into a single monthly payment. You also have to budget for things like groceries, healthcare costs, entertainment and travel expenses. Living at home requires you to pay separate bills for things like the mortgage, utilities, property taxes and homeowner’s insurance. And as it is, they don’t even have access to the kinds of amenities and services that are included in the price of community life! Many seniors are surprised to discover that they’re already paying pretty close to what they’d pay if they lived in a senior living community. If you added up the cost of all your monthly expenses, what would the total be?