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So, you’ve started thinking about the “R word”, but there’s one big problem; you have no idea how much you are actually going to need to retire.
Planning for your retirement as a single person can feel confusing. The good news is that it doesn’t have to be. That’s why we’ve created our singles retirement calculator to help you work out how much you need to retire. It will help you:
- understand the rough numbers around your retirement based on your expenditure
- use our simple calculations to help you budget accordingly
- gain the confidence to make the right decisions for your future
- have the opportunity to receive further, in-depth and tailored advice from our team of investment specialists
How our singles retirement cost calculator works
You want to enjoy the retirement of your dreams; we want to help you get there.
We’ve taken the hard work out of retirement planning with our free calculator. It’s based on up-to-date industry figures and average retirement spending for single people - alongside our own research - to deliver straightforward calculations that will help you budget for your golden years.
Simply run through each step and tell us your financial and lifestyle commitments. We’ll cover the rest.
Why should you use this retirement calculator?
Control your financial future
64% of UK employees aged 45 and over do not know how much money they need to save for a comfortable retirement. We believe it's time to change that. This calculator will put the control back in your hands, kickstarting the process in an easy, empowering way.
Get excited about retirement
Our retirement calculator allows you to handpick all the activities you want to enjoy in retirement… It's designed to be a fun tool to help you gain an exciting picture of what your retirement could look like. Because we believe your retirement should be a cause for celebration.
Put a Plan B in place
Our calculator will help you understand how much you’ll need in retirement so that you can start planning. If you’re worried that you won’t have enough time to hit your goals, it gives you the prompt and opportunity to speak to a financial adviser and put a new plan in place.
Arrange a virtual coffee with a specialist
No hard sales. No obligations. Just an open, honest chat with a retirement specialist to help you understand your current position and hopes for the future.
How much does a single person need to retire?
As a single person, whilst some of your retirement costs might be less than a couples, some of the larger costs that you might encounter in retirement, like living costs and transport and travel can't be shared, so you'll need to budget accordingly.
The minimum recommended amount of income for a single person in retirement in 2021 is £9,609 per year. But that only just about covers the basics. Other estimates put the figure between £19,000 and £30,000 depending on your desired living standard.
Of course none of these estimates reflect what you need individually. As a rule of thumb as a single person, you'll need around two-thirds of your pre-retirement income to sustain the same standard of living in retirement.
Of course, the best way to work out how much you need to retire is to start with a calculator like the one above and build a retirement plan that's tailored to you.
How much should a single person save for retirement?
How much you need to save for retirement as a single person depends on:
- How much you've already saved for retirement
- Your desired income in retirement
- What age you want to retire
- What other assets you have to fund or partly fund your retirement
- Whether you're eligible for the full state pension
If you're not sure how much you need to save for retirement. A financial advisor can help you build a solid plan to reach your retirement goal.
How we worked out the retirement costs for a single person
This calculator is designed to be used a general guide, it can be a useful tool for retirement planning but it’s not designed to replace professional, tailored advice. We used part research, part average figures to work out these costs details of which can be found here:
Frequently Asked Questions
Retirement planning doesn't have to be complicated, with the right plan in place, and the right support, your dream retirement can feel like a breeze.
We've laid out some simple steps in retirement planning below, but if you get stuck, just reach out and one of our retirement planning specialists will be happy to help you:
- Decide what type of retirement you want to enjoy
- Set a retirement date
- Work out a retirement budget based on what feels like a good retirement income for you.
- Request a pension forecast - request your state pension forecast here https://www.gov.uk/check-state-pension
- Get your pension estimates - track down old pensions with the Pension Tracing Service (0800 731 0193)
- Talk to a Financial Advisor to create a retirement plan, work out how you will pay down any debt and if it's worth consolidating any old pensions
- Put your retirement plan in action and look forward to enjoying your retirement.
- Don't forget to periodically review your plans every year to make sure you're on track, because circumstances can change and the earlier you respond the more time you have to course correct.
The minimum recommended income in 2020 for a single person in retirement is £9610 per year.
But you don't want to be planning your retirement based on the minimum amount that you can live off.
Retirement is there to be enjoyed and we want to help you get there.
How much a single person needs to retire on depends on two things;
(1) the age you want to retire, and
(2) your income expectations.
Research says you need around £20,000 a year for a comfortable retirement and £33,000 a year for a ‘luxurious’ one.
But these figures are based on averages and we're pretty sure that there's nothing average about you. Which is why we designed this calculator to help you work out exactly how much you'll need as a single person in retirement
The minimum recommended income in retirement is £9,609 a year so if you retire at 55 you'll need at least £105,699 to last until your state pension kicks in at 66.
But that's based on the current state pension age and some of us won't receive our state pension until we're 68.
It's also assumes you'll be comfortable living on the minimum amount recommended for retirement, but if you're hoping to enjoy a comfortable retirement experts estimate you'll need between £15,000 to £40,000 a year.
So you could need anywhere between £165,000 and £520,000 to retire at 55, and that only gets you to state retirement age.
You'll still need to budget to top up your state pension once you get to state pension age.
*all of these assumptions are based on you depleting your pension pot and don't allow for you to pass wealth on.
Read our Full article here: How much do I need to retire at 55
You could just about retire at 55 with £300k in the UK, as this might reasonably give you £9-12K income a year sticking to the recommended 3-4% a year safe withdrawal rate. However that barely covers minimum income standards in the UK, much less provides for a comfortable retirement.
If you are considering retirement at 55 with 300K in your pension pot there are 4 important questions worth asking yourself.
- How much money do you need each year?
- Do you have any other income?
- What are your retirement lifestyle goals?
- How long do you need 300K to last?
Read the full article here Can I retire at 55 with £300K
You can retire at 55 with £400k in the UK, as this might reasonably give you £12-16K income a year sticking to the recommended 3-4% a year safe withdrawal rate.
However that only just about covers minimum income standards in the UK for a single person and is less than the £18K a couple will need for a basic retirement according to industry estimates.
If you can live on 12K-£16K per year. Great. But if your income needs are greater you might struggle. For instance, if you plan to take 50K per year your pension pot will be gone in around 8 years. So you need to do your homework before you make a decision.
Read the full article
Retirement, like most things is subjective. What seems like a lot to one person is a mere drop in the ocean to someone else.
So Yes, you can retire with 1 million pounds in the UK, and it would reasonably give you an annual income of £30,000 to £40,000 providing you stick to the recommended safe withdrawal rate of 3 to 4%.
However, whether you want to retire on a million pounds will depend on your retirement aspirations.
Remember that if you're in a couple your combined retirement pot will need to provide for both of you.
Want to learn more? Read the full article here: Can I retire with 1 million pounds
To decide how much you need to save in a pension you need to pinpoint what type of retirement you aspire to – whether that be a comfortable or luxurious one – and build your investment plan accordingly. And then the golden rule? Get started as early as possible.
In 2018, Fidelity released a valuable piece of research that caused waves across the industry. They stated that as a rule of thumb, people should aim to save at least 1 x their salary by the age of 30, 3x by 40, 6 x 50 and 8x by 60 so that they could land a 10x investment by the time they were 67.
Read the full article: How much should I invest in my pension (+at what age)
DOWNLOAD OUR FREE EXPERT GUIDE
Fancy digging a little deeper on what you need to put in place for a comfortable retirement? Take a look at our free guide.
Download the definitive guide to comfortable retirement planning
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