The problem with averages is that, well… they are averages.
So the news that LV= has identified that the key to a happy retirement is an income of nearly £11,000 per year is both interesting and raises more questions than answers.
Is £11,000 enough and is that £11,000 gross or net income?
The report does however give an interesting insight into the spending habits of the retired population and suggests that the “essential” cost of living for a retired person is £7,263 a year.
Essential should include accommodation, food and heating but who wants a retirement which only allows for the essentials?
I suspect that the majority of people want much more than this and indeed much more than the extra £3,197 that takes them to a ‘happy’ retirement.
What I cant fault is the breakdown of the time that these happy retired people spend; 468 hours a year on hobbies and 363 hours a year with their grandchildren.
The LV= report concludes that people need to plan for their retirement as soon as they can.We would agree with this statement whole heartedly.
The problem of course is with just about every media story pointing out the problems and scandals associated with retirement savings the excuse to do nothing, as wrong as that is, couldn’t currently be stronger.
I put this down to a total lack of political leadership with government pensions policy amounting to deckchair moving on the Titanic.
