Retirement – Too Expensive to Contemplate?
Writes Dan Drage dan.drage@consumerchoices.co.uk
To retire or not to retire? That’s the question for many in their mid-sixties as the cost of retirement takes a huge leap.
According to the latest news report issued by Life Trust Insurance, retirement in the UK costs a typical household £413,000. An individual living alone is likely to rack up a bill of £326,700 during their retirement period.
The report, compiled by the centre for economics and business research, provides an objective and accurate forecast of the amount of money a person would need to fund a retirement in the UK if they were to retire at 65.
While the current life expectancy is 85 for males and 88 for females, these figures are set to increase dramatically over the forthcoming years. The cost of retirement for an individual who lives to 100 could rise to £1 million by 2030.
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"Early retirement will cost you an extra £373,300"
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Andy Briscoe, CEO of Life Trust, had the following to say:
“People are living longer, healthier lives. This is great news but only if people have the finances in place to really enjoy their post-career years. The combination of rising life expectancy and the impact of inflation over time can have huge financial implications, and this report allows us, for the first time, to see the scale of these trends”
He continues:
“With more and more people reaching 90 and beyond, and with 90 becoming the new 70 in terms of healthy ageing, it has never been more necessary for the industry and individuals to understand the true cost of modern retirement”
Pensioners in active retirement who’re making the most of their retirement by seeing the world need, on average, £1.55 million to fund their retirement years.
Early retirement will cost you an extra £373,300.
Chris Eagle, Commercial Manager at Credit Choices, knows the benefits of a sturdy savings account:
“Use the Credit Choices Savings Calculator to see how you can make your savings work harder. The cost of retirement is on the rise, and the savings calculator could help you plan for a worry free future.”
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