You are here: Home - Retirement - Retirement planning - News -

Why you could be £380 short each month in retirement

Written by:
People retiring in the future could find themselves almost £400 out of pocket each month unless they start saving more.

New research shows pensioners need £885 a month on average to live on, which breaks down to £616 for essential bills and £269 for discretionary spending.

However, this is £380 more than the state pension, which pays £505 a month.

With one in three middle-aged Brits expecting to survive solely on their state pension, this could leave them with a shortfall of more than £68,000 over the course of their retirement.

Nationwide Building Society, which carried out the research, said this shortfall could force people to abandon plans for travelling, moving home or supporting children and grandchildren in retirement.

Nationwide polled more than 1,000 40-60-year olds and found just 40% have a private pension. More than half said they were worried about affording retirement and four in ten don’t believe they’ll be able to afford the lifestyle they want when they finish work.

Jason Hurwood, Nationwide’s director of home propositions, said: “We are living longer and need more money to keep us going. The reality is that without adequate income, and potentially living a third of our lives in retirement, older people risk missing out at a time in life when they want to relax and enjoy themselves.”

Hurwood has the following tips for anyone worried by these figures:

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Santander, Lloyds and TSB ‘have the most unreliable online banking’

The three high street banks were identified as having the least reliable online services after an analysis of...
Santander, Lloyds and TSB 'have the most unreliable online banking'

How to a write a winning property offer letter

You’ve viewed the perfect property but there’s likely to be stiff competition from other buyers. Here are five...
How to a write a winning property offer letter

130 million old £1 coins still out there: what to do if you have one

An estimated 131 million old round £1 coins have yet to be returned to the Royal Mint, nearly three years afte...
130 million old £1 coins still out there: what to do if you have one

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week