SIGNIFICANT numbers of people are at risk of a retirement \u201ccliff edge\u201d fall in income when they stop work, a pensions industry body has warned.<\/p>\n
Pensions UK made the warning as it published updated \u201cretirement living standards\u201d.<\/p>\n
The standards have been developed to help people understand what kind of lifestyle they could be on course for in retirement.<\/p>\n
They are calculated by the Centre for Research in Social Policy, Loughborough University, and set out three lifestyle levels in retirement – a minimum lifestyle covering basic needs with some money left over for discretionary spending; a moderate lifestyle with more financial security and flexibility; and a comfortable lifestyle with more financial freedom and some luxuries.<\/p>\n
According to the calculations, a minimum retirement lifestyle costs around \u00a313,900 annually for a one-person household and \u00a322,500 for two people.<\/p>\n
A moderate lifestyle costs \u00a332,700 for one person and \u00a345,400 for two, while a comfortable lifestyle costs around \u00a345,400 for one person and \u00a362,700 for two.<\/p>\n
Pensions UK said it expects around 82% of the working population across the UK to reach at least the minimum standard of living in retirement, falling to just 23% reaching a moderate standard and less than one in 10 (9%) enjoying a comfortable lifestyle.<\/p>\n
It said it wants to see more action to help fix the retirement savings gap, with employers where possible offering matching contributions above minimum levels.<\/p>\n
Pensions UK also said that housing costs are not included within the retirement living standards, as they vary significantly depending on location and personal circumstances.<\/p>\n
Some people will enter retirement owning a home outright and be mortgage-free, while other people may continue to have a mortgage and others may rent.<\/p>\n","protected":false},"excerpt":{"rendered":"SIGNIFICANT numbers of people are at risk of a retirement \u201ccliff edge\u201d fall in income when they stop…\n","protected":false},"author":2,"featured_media":251121,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[145909,145906,138,145913,246,145904,145903,145912,4974,145907,58661,145905,145900,111,139,69,145911,145901,145910,145908,145902,244,245],"class_list":["post-462362","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-android-magazine","tag-best-magazine","tag-business","tag-digital-magazines","tag-finance","tag-free-magazine","tag-free-magazines","tag-ipad-magazine","tag-magazine","tag-magazine-subscription","tag-magazines","tag-magazines-for-smartphones","tag-magzter","tag-new-zealand","tag-newzealand","tag-nz","tag-online-digital-magazine","tag-online-magazine","tag-online-pdf-magazine","tag-pdf-for-smartphones","tag-pdf-magazine","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/462362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=462362"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/462362\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/251121"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=462362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=462362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=462362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}