Have you started thinking about your future? What would you like to do with your twilight years? When you’ve finished with the world of work and want a couple of decades gardening, travelling, making memories. Have you thought about how much money you’ll need in order to enjoy the retirement you desire? What is the average retirement income UK? Let’s take a look.

average retirement income uk

The Average Retirement Income UK

Starting things off with an answer to the question at hand. What exactly is the average retirement income UK? Based on facts and figures from a couple of years ago, the average weekly pensioner income is £304. That’s just over £15k a year.

How Much Will I Need For Retirement?

The general consensus of how much you’ll need for retirement is somewhere between half and two thirds of what you used to earn. You’ll likely not be paying for kids living at home, you might have paid off your mortgage so won’t have those payments to keep up with. You might even consider downsizing your property and getting rid of a car because you don’t need a large house with multiple vehicles. Will the average retirement income UK cover what you’ll need to live? You need to look at how much money you’ll get from your state pension to start with.

Your State Pension

If you’ve paid at least 10 years of National Insurance qualifying contributions, you’ll receive a portion of the state pension. In order to get the full state pension you’ll need 35 qualifying years. At the time of writing the state pension is £175.20. That works out at just over £9k a year, if there are two of you that’s just over £18k. If you lived on a annual household income of between £27k and £36k, you might be ok with the state pension. You’ll probably be looking for enjoying some trips away during your retirement years though, so having some spare cash for those kind of luxurious would come in handy.

average retirement income uk

Private Pensions & Savings

Private pensions can be fantastic. You might have one via your employer or have perhaps taken a private pension out because you are self employed. This can be a great way to build up a savings pot. This can make even more money for when you reach retirement age. The earlier you start putting money into a pension, the less you’ll have to put away every month in order to reach your goals. I have done this because I work for myself and am concerned that my state pension won’t cover what we need. Open a private pension via my link here and you’ll get a little bonus!

Now is the time to start thinking about your future. You don’t want to run a business forever. When we get to retirement age there are lots of years left to enjoy the good life. Figure out what you’ll need to live on, where you want to travel to and maybe how much you want to leave behind when you’ve passed. Whatever you want to do with your twilight years, plan and prepare finally today!

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