Retirement Living Standards - Research

[Sarenco]

I see the Pensions Council are to develop a set of retirement standards for Ireland, broken into minimum, moderate and comfortable levels for individuals and couples -

November 2023: Project to develop a set of Retirement Living Standards - pensionscouncil

14 November 2023 – The Pensions Council will shortly commence an important project to develop a set of Retirement Living Standards that reflect the financial basic needs and aspirations of older people in Ireland. It is anticipated that three ranges for retirement income levels will be...

pensionscouncil.ie

In the UK, the Pensions and Lifetime Savings Association (PLSA), based on independent research by Loughborough University, already publish a similar set of retirement living standards.

The latest PLSA standards, give a figure of €16,900 for a “minimum” lifestyle for an individual, €26,300 for a couple.

They put a “moderate” lifestyle at €36,720 for an individual and €50,550 for a couple.

For a “comfortable” lifestyle, the PLSA standards suggest a figure of €50,550 for an individual and €69,200 for a couple.

All figures are net of tax and assume mortgage-free home ownership.

Home - PLSA - Retirement Living Standards

Home - The Retirement Living Standards have been developed to help us to picture what kind of lifestyle we could have in retirement.

www.retirementlivingstandards.org.uk

 

[Freelance]

@Sarenco

Those kind of figures are subject to many variables are just about useful as a rule of thumb, but need to be treated with caution. I've no problem with the Pensions Council doing this research, but I'm not sure that they mightn't have more urgent priorities.

Are the example cases in their 60s, 70s, 80s or 90s - outgoings vary enormously dependent on age, and health?
Are they example cases active or passive ?
Urban or rural ?
Do they travel ? Much ?
Do they run one or two cars ? or none ? How frequently do they change cars ? Runabouts, bangers, motr or prestige marques ?
Do they drink ? Smoke ? Have expensive hobbies or pastimes ?
Lifestyle choices ?

Based on my experience, and on my parents finances, I'd say that the PLSA figures are a reasonable guide, but one persons "moderate" lifestyle could be another person's "very comfortable" and somebody else's "hardship".

It is so personalised that you need to do your own analysis, preferably in your 40s/early 50s, recording your expenses over a year, discounting those that will fall away (children, mortgage, work related etc), and those that you are prepared to forgo in part or in total (eating out, travel, regular car replacement) and then plan your retirement income accordingly. I did this exercise in my early 50s and learned a lot for it, monitored it over the ensuing years and it has stood the test of time now that I look back on it from a retirement perspective. It not alone enabled me to plan for my retirement expenditure and income, it also allowed the to manage my expectations, which is critical to contentment in retirement.

There have been a number of threads on this topic, including this one which you started which show the range of views on the subject.