Average UK Retiree Income - How do you compare?

[@DeeCee-nb6ev]

Try working out the figures for singles and couples who are on the minimum wage, the living wage and the average wage. These would give a better indication of what the vast majority of the population get as retirees rather than the average.

[@stuwhite2337]

Unless you have a very good employer pension or inheritance anyone in those groups is going to be dependent on benefits unfortunately

[@Thaitanium73]

@@stuwhite2337 If a 27-year-old started paying in £250 to a SIPP every month, the government would add tax relief to that amount, if they then increased the monthly deposit amount by 2.5% every year, investing the SIPP in S&P 500 and continued to pay in until aged 67, assuming they achieved the average past performance of the S&P 500 they would have a pot of £4,158,994 upon retirement. Not bad.

[@jeromesand]

Most people don’t realise it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.

[@EmmanuelleNatty]

This is really amazing though. I'm curious as to how he did it. Was it real estate? Or he was a market enthusiast?

[@jeromesand]

Hehe. Investing enthusiast? Not really. Our family got introduced to a financial advisor about four years before my dad retired. That was what changed things. I've been using the same now and I think my retirement income would be on the right track.

[@JacobsErick-u8r]

I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

[@jeromesand]

Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@winifred-k9e]

Thank you for this tip. It was easy to find your coach on web. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

[@porschecarreras992cabriole8]

Going to 100 years old in voyant scares people that they need funds till then. That’s wrong as people at this old age will need very little money anyway and the state pension will suffice. I plan up to middle 80s and if I manage beyond that age i will be on state pension

[@evokestudiosbrighton]

Might or might not be true, if you can keep your health and live independently and then just suddenly drop dead. If however, your health slowly fails and you end up in a nursing home and have sufficient funds saved that your council consider they can't support you, then your outgoings will be sky high. If you dont have enough funds then yes, you might not spend more but your death will be hastened by living in a council run home.

[@patoises]

@@evokestudiosbrighton I won't delay retirement and loose the best years of my life just so I can afford to be immobile in a nursing home if I so happen to be lucky enough to live until 100. Planning to 100 is just crazy!!! Leave the rat race as soon as you have enough money until the average lifespan which is 80-85!

[@kevak1236]

Their idea of moderate must be vastly different to mine. £43k/year for 'moderate' retirement for a couple??? £25.5k taxfree, 20% tax on £17.5k = £3.5k so take home of £39.5k or £3,300/month - that's excluding any UFPLS drawdown for more tax breaks. Thats roughly the same as £52k/year for a single salary with no pension payments, NI, commuting costs etc, and (presumably) no mortgage. Food and bills, say, £1300/month leaving 2 grand a month to just spend. Even bills of £1,800 still leaves £1,500/month spending money.

[@ianjames3078]

£43k after tax!

[@AgileSnowWeasel]

Apparently they model in £8K annual gifts to children on that moderate modelling - think of things like helping with a mortgage deposit, grandchildren, etc, so it might not be an even 8k a year, but 2k a year and then one or two large withdrawals in total. So if you don't have kids, or they're doing well for themselves by retirement, then you can drop that requirement massively.

[@tancreddehauteville764]

These figures are churned out by financial services companies in order to panic people into investing more and more. In reality they are utter nonsense.

[@stuwhite2337]

I've been working towards that number for a moderate retirement.

[@JT_2024-c8j]

And you don’t need to save for the future/rainy day. The rainy day is here. Get all your travel, cars and enjoyment when you’re younger. You won’t fit in the low sports car or have the reactions to drive it, you won’t have the energy to trek up a mountain when you’re older. Enjoy your younger years, retirement is for reflection and enjoying the simple pleasures in life which are relatively inexpensive.

[@stewartburnett7303]

Always a lot more complex in practice. I "retired" at 56 with a DB pension which covers ~45% of monthly spending requirements , at 60 I'll have another DB (now covering 60% of spending requirements) and in the mean time I'm topping up from a DC pension pot till I get to 67 and receive the full state pension. I'm keeping some DC in reserve and kept some lump sum back for bucket list holidays - the lump sum monies are earning tax free dividend income in my ISA

[@denisfitzgerald3474]

Where do these averages come from most people never earn these amounts before tax never mind after tax. 43k for moderate! I’d like to see the data of how many people retire with this figure. The UK average pension pot is way below this figure. I’m in my 50’s and don’t need anywhere near this figure to live a good life. Let’s have a video showing what the average person will need to retire based on real world numbers.

[@PrinciplesPersonalFinance]

Hi Denis, research sources discussed in the video and also put in the resources section in the description. 🤷‍♂️

[@Sozbear]

Agreed entirely. It's not for us to source the stats but for them to explain in some detail.

[@DixieDaydreamer]

The key words for me are "coverage" and "comfortable". "coverage" means making sure you have enough to smooth out the bumps in the road and still retain a "comfortable" standard of living. You have to define "comfortable", for some it's cruises, fast cars, etc, for me it's simply having my bills paid and something left over for hobbies with the odd weekend trip here and there around the UK. My wife and I are in our early 50s and we're already attempting to live like we believe we'd like to live in retirement, the benefit is that we free up spare cash while I'm working which we're saving plus we're training ourselves in advance to shift gears when the time comes without it feeling like a huge speed bump in the middle of the road.

[@chrislines-actorandvoicear4980]

I think you should show us median retirement income, not the average. Take out the top and bottom 10,000 people and see what that does to incomes!

[@jonathanfleck5419]

He does show median income: He states at 2:28 : "the government's data uses median. Income as a measure of average income because the mean gets biased by higher earners". Also, from the government website he's referencing from: "Unless otherwise stated for certain income breakdowns, we use median income as our measure of average income, as the mean is often biased upwards by extremely high values."

[@roblowry9457]

A really interesting video. I'm not a fan of the PLSA living standards figures - they jumped over 20% from 2023 to 2024 and as funded by organisations with an interest in increasing the amount you put away as investments, I wonder if they are guilty of fear-mongering. Thanks for giving a broader view. I look forward to what the Which? figures will be when they update them this year.

[@PrinciplesPersonalFinance]

I hear you, they do need to be taken with a 'pinch of salt.' As with any averages and estimates, they are relatively meaningless unless put in the context of an individual's position. Hopefully, these things prompt people to review! Thanks for watching Rob and taking the time to comment.

[@porschecarreras992cabriole8]

It is just a guideline. You must calculate how much you need to live based on your current lifestyle!

[@juleswombat5309]

I don't understand the models, assuming the same income levels for the duration of retirement. Early retirees will be spending more, fit and healthy, long awaited world trips, hobby toys etc. So spending will typically be higher in your 60s than in your mid to late 70s. Later retirement is pretty binary, but typically very low spend due to ill health, lack of mobility etc. But the catch is , care and health care costs for a minority, typically selling houses to pay for final care costs etc. I don't think so many 90 year olds are worried about their finances or pleasing the bank managers. They just want to die if they are in poor health.

[@WeAreTheUnhappyMajority]

People need to understand as you age your life style changes, at a certain age people tend to give up driving so that means you have extra freed income to spend elsewhere such as energy bills and other expenses.

[@Dailypalamides]

We retired with 350k at 62. We are 65. KEY is low expenses which are somewhat regulated. We do not pay for: Water, homeowners insurance, Trash nor any health costs beyond Part B (due to qualifying for Medicaid if needed) No debt, Prop Tax is $330 a mo. here in Northern Calif on the outskirts of a world class ski town called Truckee, CA. Groceries are $1250, Clothing/Hair- $200. Donation $350, Tech/Cell-$200, Transportation- E-Car, E-Bikes & home powered by DIY Solar about 7 months a year.- $800, Utilities- $250, Repairs- $250, Unexpected costs, Travel $200, Chickens $50= $2125 per month haha. Live in a 750 sq foot home on 3 acres w/ a 650 ft barn. We raise chickens for eggs but the compost pile is their main source of food along with fodder we grow. We grow sprouts in jars which is 1/3 of our vegetables. 8 fruit trees. We can/preserve food. Travel-camping 3 weekends a year in our older RV. We enjoy church, bible study, cycling and volunteering. We ride w/ a bike club 3-4x a mo. about 1/2 the yr. Coffee out 1x a week w.friends. Occasional dinner in or out with friends. A Great Life! Expenses are about $3000+ and our Income is $4500. We usually have about $250 leftover each month. At 70, we'll start taking $12k a year out of the IRA. We have newer most everything so nothing will go out anytime soon. Emergency cash fund = 20k. Credits to my FA Dianne Sarah Olson. Life is good

[@Bergenn158]

impressive. Also i looked up your fa and she has quite a strong knowledge on investing. Will definitely reach out to her

[@ianjames3078]

This is uk so we don’t know what all your terms are

[@davidcoard1978]

Anyone still awake?

[@ianjames3078]

Keep your monthly expenditure down and realistic when working or have expenditure that you can bin when you retire……ie. Pension savings. When your income reduces reduce your outgoings similarly.

[@3thinking]

Those figures all seemed meaningless to me. Household size, location, lifestyle is so variable that what others have and do with their money makes all the difference. Neighbours opposite are retired, and runs a brand new luxury SUV that they change every 2 or 3 years, retired neighbour next door drives a 15 year old Ford. Both retired but completely different lifestyles.

[@kithale316]

I am state pension age and disabled. Due to not working outside the home for many years I get 300 per month. My husband is younger and thanks to the fear mongering we are very worried. It looks to me that those people who have not saved will get help while those who have will get no help until they spend al their savings. I have fought cancer three times if I had known how evil Starmer's government would be I would not have fought at all.

[@Chills124]

IFS numbers use mean to calculate averages so those figures will be skewed by the high earners/large pension pot people. Median would be more accurate average figure.

[@charliepaynter]

What a fantastic cash flow model (7:03 onwards) - I am assuming that the author of the model (Voyant), will only share its template with subscribers to its services? Thanks for the content.

[@PrinciplesPersonalFinance]

Hi, thanks for watching. Yes, Voyant is subscription-only and tends to only be available via professionals. It's incredible software but aimed at professionals. Some take to it well, others can get overwhelmed by the options.

[@paulr9572]

Its really not hard to build a spreadsheet model for your personal situation. Don't forget to include fund growth and inflation parameters however.

[@andymcnish]

@@paulr9572 If you're financially literate, you can build a spreadsheet pretty easily mapped onto your personal position/options and then you can backtest risk of ruin using various free investment tools. You can build in options such as part-time working or downsizing and also factor in possible inheritances/costs. You can also use guardrails to better map your drawdowns onto investment performance and lessen sequencing risk. What is tricky is that inheritances can never be relied upon but, in the real world, are major factors in the amount of money you are likey to access in your retirement. My wife and I are going to drop to 2 days a week each in a couple of years (she'll be 55 and I'll be 60). She'll have a small NHS pension (index-linked) and I should have around £550k in my SIPP by then. We''ll probably draw around £40k in pensions and maybe another £30k in salaries at the start (gross). We'll play it by ear from then on to some extent as to when to completely give up work. I think flexibility is important but so is not waiting too long to retire.

[@PabloTBrave]

Interesting I did thought the amount needed throughout retirement wasn't equal as younger pensioners are more active and spend more than older pensioners

[@petermorris3665]

Older pensions spend more though on care, health, gardeners, handymen/women etc.

[@bambit08]

Thank you - this is very helpful. As a woman in my early 60s (with a degree) I have worked all my life and cared for my parents and an ill younger brother. I can say women have had much lower income generally than men (doing the same work) and have been utterly shafted by George Osborne raising the women's state pension age. Trying to get a decent job in your 60s is NOT easy.

[@PrinciplesPersonalFinance]

I'm really sorry to hear that. It's terrible we still have such a gender pay gap in this country and I hope this changes in the future. Wish you the best and thank you for watching.

[@nowisthetime6093]

It has been illegal for years to pay a woman less than a man doing the same job. Also women wanted equality so you now have it. Everyone gets their State pension at the same age. So what's the problem?

[@chrismellow3947]

Also if you'd checked the SPA at any point within the last 20 years it wouldn't have been a shock. The information was available to anyone with a reasonable amount of get up and go. Anyone caught out by the rise has done so because they didn't do their due diligence and deserve no sympathy.

[@davideyres955]

@@PrinciplesPersonalFinancewe don’t have a gender pay gap, we have a people not doing the same type of job and not getting paid the same amount of money gap or a reality gap if you like. If you do the same job or job of equal worth then it is illegal to pay someone less on the grounds of their gender. If a woman puts in more hours than a man doing the job then it’s fair she get paid more and vice versa. Women statistically live longer than men so being able to retire 5 years earlier was double the benefit given it’s the tax payer that pays the bill. While I have sympathy with the waspi women there does seem to be a lack of accountability on their side, remember the world dosnt owe you a living and no one said life was fair.

[@Neddie2k]

@@PrinciplesPersonalFinanceThere is no gender pay gap in this country. There is not specified salary for women and one for men in any profession. If we talk about sports, men sports generates more revenue than women sport, if we talk about modelling, we know who’s paid more.

[@dallassukerkin6878]

Every time I watch a video on this topic I am staggered by the sums of money being talked about! I have prepared the way as best as my income has allowed and I am still only just over 100k in the pension pot. The assumption that couples will both bring something to the table is more reasonable than the amounts but it is not universal. I am one of those fellows who is 'carrying the bag for two' and what is going to happen when I stop work is not a pleasant prospect. A question that occurs is just when did the government decide that it was okay to budget for a State Pension that did not even cover basic living expenses?

[@mramg6038]

Personal income tax, rather than household (a la France) is designed to ensure you DO NOT have a 1 person income in the household. It was intended to get the UK out of debt post WWII, but as we can see it's just become another revenue stream to squander for short-termism. Hard working people such as yourself are collateral damage to HMRC im afraid. Similarly, if your wife doesnt contribute above a threshold she wont have state pension entitlement (not that it will be around by the time we retire anyway). This is the same reason that the state sponsored feminism, as they want the household reliant on two incomes for nominal GDP. All you can do is maximise your pension contributions while the cap has been removed (i.e. before Labour) & hope for the best. Retire somewhere cheap..!

[@AgileSnowWeasel]

@@mramg6038 It is political suicide to remove the state pension entirely. The tricks will be removing the triple lock (but even this seems to be seen as a political hot potato right now, so we've got this for a few more years at least), increasing retirement age (but be aware that this comes with increased in-work disability benefit payments as you raise it), killing people earlier via poor healthcare provision, and means testing (punishing people who scrimped earlier in life). There are some moves towards household-level considerations - child benefits and childcare first, but once the systems start supporting it, why not allow combined allowances eventually?

[@AgileSnowWeasel]

The first 100k is the hardest they say, so you've got there. Check with HMRC online to see if you can buy NI years for your wife to get a full pension there.

[@dallassukerkin6878]

@@AgileSnowWeasel True enough - the real problem is that I arrived at that milestone twenty years too late to benefit from the friendly multiplier of Compounding :( As to the other half, she is American so that rather complicates matters :double sadness: :D

[@AgileSnowWeasel]

@@dallassukerkin6878 that's the bummer. Americans, their 401ks are similar to our DC pension schemes, but maybe a little more encouraged there than here back in the day.

[@skylineuk1485]

They may be average but definitely not median. The amount median actual people will have in that pension pot is staggeringly low. ONS figure for median pension pot at 55-64 year olds is £107,300 and in some areas it is much lower than that. In reality those I know with average jobs have more like £40K saved in their 60s making life look grim for retirement.

[@summerrr1]

I’m 37 and have just over 300k across various pots. I’m planning on increasing this to 500k over the next 4-5 years and then stopping contributions. I’ve worked out that this 500k will then grow organically to around 1.3m over the following 17 years (until I get to 58 and can start to withdraw), assuming a growth rate of 6% annually. I am paying in aggressively now as I plan to semi retire at 44. Does this sound like a reasonable plan or am I missing something key?

[@PrinciplesPersonalFinance]

Thanks for watching and taking the time to comment. I do have to caveat (for regulation) that can't really say anything beyond generalisations as things are highly specific to circumstances and I don't know your unique position in any detail. What it does sound like from the comment is you are being very intentional with your strategy which is great to see! With any planning the key thing we look to deliver for clients: - Investing heavily in well-diversified, low-cost investments with the right asset allocation for growth. - Maximising tax reliefs that are available as much as possible. - (The hard bit) STICKING to the plan. A good financial adviser is part personal trainer, as the technical bit is only part, the main way to wealth is continual discipline. With tax year end I've been around my wealth-building clients and encouraged them to max out allowances where they can. (Trying to get the last rep.) - Semi-retirement at 44 is very young as far as drawing down on assets and would blow up the standard assumptions around the 4% rule. All that said (see above no idea about your position) if it's taking a step back from work you can afford that comment may be totally irrelevant! Wish you the best for your journey. 🙌 This yearbook has some great data on historical returns. While as always, past performance doesn't guarantee the future etc! 😉 www.ubs.com/global/en/investment-bank/in-focus/2024/global-investment-returns-yearbook.html

[@lostnomads2285]

Subtract your outgoings from your income… best place to start.

[@hilaryleighter2313]

Thank you for this. Please will you bring out a video re equity release? In the above video it is all about raising your income / starting with a large savings pot - not always possible any more as an existing pensioner. But for 25 years many of us paid a huge mortgage and have a house worth £1M+ (especially in London). Is it not possible for us to get a reasonable income / pot of money back from that now? And where is that best sourced, so as not to give even more profits to grasping insurance companies? If only the Government could give a reasonable rate equity release, to gain more public housing after we die?

[@jasperplankbadger]

"disposable income" as an economics term is misunderstood by almost everyone - what is actually means is the income received after tax has been paid. It does not mean money after tax and after bills have been paid - that is would be maximum discretionary spending.

[@justintrainer936]

Thanks for a good view. Always impossible to model someone's requirements but the go-go, go slow and no-go reductions in expenditure would be good to mention as I see that all the time so seems pretty typical/realistic. Maybe marrying this to the average retirement savings pot would be a great video so we could see if £440k was a typical or higher pot than what many people have achieved. Appreciate the video🙂

[@PrinciplesPersonalFinance]

Thanks for watching and you're absolutely right. Appreciate the content suggestion as well. That's a very good idea. I'll think about looking to bring it all together. 👍

[@doriangray6985]

Yes that is what I was hoping this video to provide

[@WeAreTheUnhappyMajority]

I'm frugal as you can get, probably because I grew up in poverty. Now retired seven years ago at the age of 50 and living in a new house mortgage free with no debt. I receive a modest army pension and manage to save money towards my advance age..

[@darrenrichards27]

Thanks for another great video. I've seen a few people use the voyant software now and l think it would be a useful tool to use as i approach retirement. Would you happen to know if the software is available to retail investors or just to those who work in the industry.

[@PrinciplesPersonalFinance]

Hey Darren, thanks for watching. I think Voyant is mainly for professionals only. I'd suggest checking Pete's Meaningful Academy!

[@reasonerenlightened2456]

​@@PrinciplesPersonalFinance Can you calculate the real minimum wage for a given society where people have the chance for a dignified existence? The Minimum wage must pay for 20 years of growing and education at the beginning of the human life , plus, another 40 years of work on minimum wage while having a dignified existence, plus, another 30 years of retirement and a funeral at the end of the human life. So, again, can you calculate the real minimum wage for a given society where people have the chance for a dignified existence?

[@porschecarreras992cabriole8]

Just 15000 people reach age 100 in the UK. I do understand the number increases but still it is small. Reaching 90 is just 500k people so planning to 90 is borderline acceptable especially if you have full state pension and in good health.

[@PrinciplesPersonalFinance]

Thanks for watching, it's a tough one to get right. I see the importance of both sides and it's one of the key things I'm trying to always adjust and get right with my clients. Not underspending and leaving money on the table, but also being mindful of underestimating longevity is a key human bias. Probabilities from the data are for getting to 90 once reaching age 65. Male: 24% Female: 35% One of a couple: 51% Source: ONS 2018-2020 Life Tables, J.P. Morgan Asset Management. Guide to the Markets - UK. Data as of 27 March 2024.

[@AnthonyBrennan-v2e]

OK so you plan to have enough to reach 90 so what happens you make 91 and all you have to live on is the basic pension?

[@porschecarreras992cabriole8]

@@AnthonyBrennan-v2e I have full UK state pension and some rental income and I pay no rent. There is always a back up plan

[@musheopeaus4125]

Mate that BOE Calc is whack it’s telling me a thousand pounds in 2022 costs only 84p more today

[@PrinciplesPersonalFinance]

You're right that 2022 figures as the starting point only show an 8.67% increase. Drop it back to 2021, which will allow for the 2022 inflation spike and last year. You get to 18.56% compounded inflation which is closer to how it may feel.

[@mindcache5650]

According to the available data, approximately 20-25% of UK male pensioners die between the ages of 66 (the state pension age) and 70 years old. To break this down further: - As mentioned previously, the average life expectancy for UK men is around 79 years. - For men who reach the state pension age of 66, they can be expected to live, on average, another 13 years to age 79. - However, not all men will live the full 13 years after age 66. Statistics show that around 20-25% of male pensioners in the UK die between the ages of 66 and 70. So in the first 4 years after reaching the state pension age of 66, about 1 in 5 or 1 in 4 UK male pensioners will pass away. This represents a significant proportion of the male pensioner population. The remaining 75-80% of UK male pensioners will go on to live between the ages of 70 and 79, on average. But the mortality rate is still relatively high in the initial years of retirement. This highlights the importance of robust retirement planning and access to healthcare and support services for UK men in the early years of their retirement, as a sizable minority do not survive long past the state pension age. Policymakers and retirement providers should consider these statistics when designing programs and systems to meet the needs of this population.

[@gavinward3176]

This is quite topical for me, I've focused on saving to buy a house but acutely aware of the need to save for retirement. Most pension calculators seem to start on the basis that you would want half your income in retirement, plus any state pension. Are these assumptions right or is there more to consider? Also, workplace schemes seem expensive for employees (NEST as an example). What's the best way to plan for retirement, is it a bit of money in different pots or all in one pension to maximise returns?

[@PrinciplesPersonalFinance]

Hi Gavin, thanks for watching. I can't say anything specific as I'd really have to know the full details (please do not put them here) and advise fully but here are some general considerations: - Getting onto the housing ladder in itself is very challenging due to how expensive housing is. While videos on personal finance may indicate everyone has a ton of money in pensions, huge houses etc. That simply isn't the case and if you do get on the ladder that's a great achievement in itself during a cost of living crisis, so I'd always say focus on your own position. - The calculators often fall into the realm of 'helpful but wrong.' The only way to really know is to track your expenditure and use that as a starting point. Once you know what you need, the calculators can be more useful to give you an idea of what pot size is required. - The rent vs buy consideration is multiple videos in themselves, but from the lens of retirement, there are no 2 ways about it, continuing to rent in retirement means needing a much bigger pot than someone who is mortgage-free. - Tax relief around pension contributions is a big consideration when saving for the future, although as there is marginal rate relief (20/40/45%) then it does again depend on someone's personal position. Sorry, that is a bit vague! I'd never want to give anything other than broad guidelines as these decisions are always dependent on individual circumstances. Appreciate you taking the time to comment.

[@stevier3510]

The recommended income levels that people need for retirement are misleading. Yes they have a list of likely expenses, but someone who owns their property outright is going to need less than the same person who continues to rent. Many people will not have earned these figures p.a. in their working lives. There used to be a rule of thumb that you need 2/3rds of your net pre retirement income in retirement.

[@ohyesitsme]

Living in another world. Lots of retirees live on a basic state pension.

[@Tensquaremetreworkshop]

Very few get a 'basic state pension'. Yes, on the new scheme. On the old, Serps, grad pen. and opted out additional add up. I am on the 'old' pension, but get 50% more than the new one.

[@alexm7310]

Quick delivery! Would be useful if you could just focus on couple or single so the numbers make more sense... Thank you 😊

[@jcm9356]

Very clear and a great presentation. You should have more subs!

[@PrinciplesPersonalFinance]

Thank you, appreciate your kind words!

[@u3vs62cja]

i’m glad you think i’m above average based on your thumbnail. i might decrease my pension contributions

[@gonnahavemesomefun]

Can we have average pension per wage bracket? I've never ever found it anywhere. I was always curious about having the stats like you presented but cross-referenced with earnings. So, someone on from £50k to £200k what is the average pension between that range. That would be more useful. The average is always skewed by the upper and lower. I want to know what is typical someone in my wage bracket.

[@andypayne2743]

Retirement is often thought of by most as an age thing. Retire at 67 and that’s it, but it’s not, it’s a financial decision.

[@davidfolts5893]

Neat, as wage inflation increases, so does the standard of living. Thanks, Principles Personal Finance.🔥

[@PrinciplesPersonalFinance]

Thanks for watching David!

[@davidfolts5893]

@@PrinciplesPersonalFinance My pleasure, George!👍

[@reasonerenlightened2456]

​@@PrinciplesPersonalFinance You are very funny when you talk about money as if money grows on trees. I am sure that is how it feels for the Wealthy, they wake up in the morning and find new money is in their bank accounts.

[@petermorris3665]

@@reasonerenlightened2456 Yep, it does appear in my accounts every couple of days! Its called investment growth / income. Its what happens when you invest your money instead of spending it on fags, Netflix, SKY, a new kitchen to impress the neighbours, booze, tattoos, meals out, takeaways, foreign holidays to impress the neighbours, hairdressers/barbers, pcp cars to impress the neighbours etc.

[@eimkei1339]

How a means tested State Pension will affect everyone is now the requirement. I can't imagine how you can 'plan' around political vagaries at any stage in life, and for those already retired it could blow their finances apart with little or no chance of remedying what might have been a soundly based retirement plan.

[@Tensquaremetreworkshop]

'Retirement' is so last century. By all means stop going to a place of work for a set number of hours a week. In fact, stop doing that ASAP. But do not stop doing things that you enjoy that people will pay you money to do. A hobby you get paid for? Exactly. I though that I had retired at 52, but I finished off a project in my own time at my own pace- and found that I enjoyed it. So I kept doing it. Did not stop me Wintering abroad, or playing golf when the sun shone. Did that for 25 years, and ended up with more (much more) than I retired on. Over-funded, but that is the right kind of problem. I spend more now than I did when I worked, and it is still going up...

[@PrinciplesPersonalFinance]

Couldn't agree more, just did a podcast episode where we talked about this and the outdated notion of a traditional retirement. I think it's tricky as it's hard to say to someone 'keep working' if they are doing a job they hate but as you mention, if you can continue to get income and engagement out of something in later life. That's the ideal. Thanks for watching

[@TheOC1968]

Thanks, that is really helpful. I guess ave expenditure may add context. Looking at my parents, 60-70 lots of energy = more spending, 70+ less energy & expenditure likely fell too. Do you think we need them same income later in life?

[@adm58]

Also, more spending when someone to share things with. Couples likely spend more than singles. Old couples eventual become one single.

[@mark196233]

I don't think you need that much to retire. My proof? People are living on way below that amount at the moment.

[@PrinciplesPersonalFinance]

That will be true for many, so not something to dishearten anyone. Averages are just that and will mean that there will be those who sit on either side of the line. This is equally true within work as in retirement. Thanks for watching.

[@Johngidds]

Hi ? I’m still Employed by umbrella company I’m now with drawing state pension pay tax and no pay no employee National insurance but paying employer National insurance insurance is that correct

[@arhodes2866]

Thank you.

[@chqshaitan1]

very interesting video bud. My wife is a lot younger than me(14 years). i am planning to retire in 10-15 years, so should have a semi decent pot assuming nothing untoward happens between now and then :)

[@wl660]

Retirement - “the action or fact of leaving one's job and ceasing to work”. If you work Cus you are bored, or for a bit of extra income, you are NOT retired. That would be called a Part Time Worker.

[@S2000Y]

This assumes you have no savings ???.

[@theoisme]

Kinda sick of pension planning videos (and stats) that don’t state total worth, for example, saying i need 30k a year so i can’t retire until im 69, but oh wait, i have million pound property with loads of equity, so i could downsize and retire at 60. Yet someone else is renting, ‘pot’ should include everything as you can always move thing’s around if you really want to retire earlier

[@PrinciplesPersonalFinance]

Correct, I'd suggest seeking advice specific to you. Videos designed to be 'one to many' can never cover your unique circumstances.

[@rosemaryohare7775]

Am I stupidw

[@kbeesmot9928]

Are you single or a couple. What about family, yu missed that at the start? When I get to 67 I will have twin 13 years olds. That said I am planning to retire next year when I hit sixty, as the kids need the dad taxi to ferry them to all there out of school clubs and trying to manage work and bringing up children is tricky.

[@PrinciplesPersonalFinance]

A fair point!

[@nathanshane446]

You talk way too far when you're chopping and changing from different statistical measures

[@chrisfox3161]

amazingly a working class couple, one from a Lancashire mill town and the other from Glasgow, not working, can have over a 60k pa joint income without touching capital. We did it by a bit of thinking before Excell was even thought about and before you, young man, were a glint in the milkman's eye. All despite Liz Truss.

[@timeparty718]

Meaningless graphs, meaningless data, unspecific ... complete waffle ... 10 minutes of my life wasted.

[@PrinciplesPersonalFinance]

Glad you liked it! 😉

[@timtimothywillcox938]

I refuse to trust the advice of anyone wearing a polo neck

[@PrinciplesPersonalFinance]

Hahaha, yea fair enough!

[@summerrr1]

He is able to pull it off.

[@markjackson8261]

Thanks to the Tories I would think in 30 years time there will be millions without a pension

[@joejoejoe4577]

Don’t go thinking any other party will be any different. They’re all just differently dressed clowns in the same failed circus. They don’t care.

[@AgileSnowWeasel]

And yet the auto-enrolment pension contribution is pretty much the only good thing introduced by the Tories - or was that a LibDem policy back then? Regardless, it was before the current bunch of mad squirrels took over. It'll mean more people have some sort of pension. Sure, a £24k job is only £2k a year, but over 45 years it still adds up (£250k at 4% real return, and that's £10k a year on top of the state pension, times two people if you're lucky, that's £43k (assuming state pension lasts in its current form in 45 years, that's another discussion)).

[@markjackson8261]

@@AgileSnowWeasel My point is most younger people I know pay minimum or have scrapped their pensions in order to pay just for basic living costs.

[@AgileSnowWeasel]

@@markjackson8261 That's not a great idea compared with finding another way to save that 5% (pre-tax, so about 3% of take-home) so you can contribute to a pension early on. It's about £80 a month, or £20 a week. I know things are tight but there has to be a way to find that in the budget?

[@PeteH0121]

So no blame attaches to the Bliar/Brown governments for trashing the pensions industry for the average worker???