Retirement is a big lifestyle change. You might stop working completely or you might slowly transition into retirement but continue to work a little. Either way, it’s important to think about what you want to do to help you understand how much money you’ll need to achieve the future lifestyle you want.
It’ll be different for everyone – you may want to continue to work part-time, take up voluntary work or you may decide it’s time to simply relax or travel.
Regular holidays abroad and plenty of hobbies may mean you’ll need a little more. But if you’re happy with less holidays and less spending then you might not need as much.
According to Which?*, average retired couples spend around £25,000 a year. This covers all the basics, such as bills and food, as well as some luxuries like holidays to Europe, hobbies and eating out. This increases to £40,000 a year if you want things like long-haul trips and a new car.