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Research shows £15000 a year gives a happy retirement
| Published: | 5 Jun at 6 PM |
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One of pension savings’ great mysteries is how to calculate exactly how much income per year equates to a comfortable retirement.
A recent industry study in the UK concluded that an amount of £15,000 per year was enough to keep the average pensioner happy, and that contentment tended not to rise with an improved level of income. The National Employment Savings Trust, the author of the reports, might be surprised to discover that the amount barely covers the total monthly expenses of the average British retiree.
The Trust might also be surprised to discover that it’s significantly lower than the annual pension amount paid to our American cousins. They, of course, don’t need to have saved over and on top of their government pensions to live at a reasonable standard as fuel, food and just about everything else except heathcare is cheaper than in the UK.
Retirement in the UK for the majority of the older population means not only cutting out treats and even holidays but, for many, a choice between heating and eating. It’s no wonder that an ever-increasing number of retirees are heading for EU member states destinations containing an established foreign community, warmer weather and cheaper housing.
Retiring to the other side of the world is admittedly for the brave, and needs to take into account the UK’s frozen pension policy. However, with the state pension at its present rate and a small investment income, living in Thailand, Cambodia, Laos or Vietnam gives an inexpensive, unique experience, bargain housing costs, culture shocks a-plenty and a chance to readjust to a healthier lifestyle.
A recent industry study in the UK concluded that an amount of £15,000 per year was enough to keep the average pensioner happy, and that contentment tended not to rise with an improved level of income. The National Employment Savings Trust, the author of the reports, might be surprised to discover that the amount barely covers the total monthly expenses of the average British retiree.
The Trust might also be surprised to discover that it’s significantly lower than the annual pension amount paid to our American cousins. They, of course, don’t need to have saved over and on top of their government pensions to live at a reasonable standard as fuel, food and just about everything else except heathcare is cheaper than in the UK.
Retirement in the UK for the majority of the older population means not only cutting out treats and even holidays but, for many, a choice between heating and eating. It’s no wonder that an ever-increasing number of retirees are heading for EU member states destinations containing an established foreign community, warmer weather and cheaper housing.
Retiring to the other side of the world is admittedly for the brave, and needs to take into account the UK’s frozen pension policy. However, with the state pension at its present rate and a small investment income, living in Thailand, Cambodia, Laos or Vietnam gives an inexpensive, unique experience, bargain housing costs, culture shocks a-plenty and a chance to readjust to a healthier lifestyle.
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