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How much adds up to a good retirement?

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Research shows that, on average, around £15,000 a year is needed to fund holidays, motoring and hobbies in retirement. How close will you be to achieving this ‘magic figure’?

Aviva’s new Retirement Planner can give you an idea of your progress... 

Holidays and weekends away... clubs and classes... days out and trips in the car... it all adds up. How much would it cost you to fund the kind of retirement you’re hoping for?

A study of the over 40s found that two thirds of people surveyed have some idea how they would like to spend their retirement years – and an income of around £15,000 a year would be needed to give them the kind of lifestyle they’d like. For a couple, this means nearer £30,000 a year is needed.

We’re not talking about people expecting to live the high life. Researchers found that the average Brit intends to go on three holidays a year – one of them abroad – run a car and enjoy some activities and hobbies in their new-found spare time.

Great expectations?

The study looked at what people might expect from a typical year during their retirement, and how much this could add up to:

  • One holiday abroad – £950
  • Two breaks in the UK – £634
  • A further three mini-breaks – £532
  • Hobbies such as attending classes, playing golf or joining a gym –  £2,114
  • Visiting family and treating children and grandchildren – £1,156 
  • Running a car – £2,044
  • Healthcare and insurance – £308
  • Household bills, food and essentials – £6,447 

Clive Bolton, Managing Director, Retirement Solutions at Aviva said:

“It’s all very well to have an idea of what you want to do after you finish working, but many people underestimate how much money they will need.  Your state pension is unlikely to cover everything you want to do during your retirement, so it’s important to have some kind of financial plan in place to provide additional funds.  

The study would certainly suggest this is true – researchers found that around three in ten over 40s have no plans in place to fund their retirement. But that’s not all. Of those that have a financial plan, 64% admit it’s probably not going to be enough to do everything they want to do.

Are you on target for the kind of retirement you want for yourself?

We’ve developed a new online tool, ‘My retirement planner’, it can help you gain an idea of the estimated future value of your personal pension plans – and you can work out how much more you might accumulate by changing the amount you save each month.

The planner simply aims to help you focus your thoughts – it isn’t designed to provide an accurate picture of your income during retirement. Before you make any decisions, we strongly recommend that you talk to an adviser.

Why not take a look at ‘My Retirement Planner’ now? If you want to check if you’re on target for the kind of retirement you’d wish for, it’s a good place to start.

We interviewed members of the public about their thoughts on retirement and what they think their future retirement may look like. Watch what they had to say. 

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