Pensions - Articles - Royal London comments on the 2015 ONS Family Spending Report

 While spending on essentials, such as food and housing was fairly similar for both those reliant on the state pension and those not, 38% and 33% of total expenditure respectively. The greatest differences were found when it came to lifestyle expenditure. Retirees not reliant on the state pension spent close to £150 per month on recreation and cultural activities compared with those reliant on the state pension who spent less than half that amount, at £70 per month. Other areas where pensioners who are not reliant on the state pension spent far more each month include health, nearly £20 versus £13.30, 53% higher and transport, £84.90 versus £58.10 per month, 46% more.

  

 Royal London’s recent Pensions Through The Ages research highlighted that a worrying number of people said that they would be reliant on the state pension in retirement. A third, (33%) of 18-29 year olds and two fifths, (40%) of those in their 30s who are not currently saving for retirement said that they think that they will rely on the state pension. The research also revealed that 20% of 65-75 year old retirees are solely reliant on the state pension for 100% of their income in retirement.
 
 “The latest ONS statistics clearly demonstrate that while the state pension may be there to cover the bare essentials, when it comes to enjoying retirement, having other forms of income, such as a pension to provide an additional income in retirement is vital. Regularly reviewing the level of income that may be required to meet spending needs in retirement is key. This is where the benefit of consulting a financial adviser is so valuable as they are able to help people achieve their goals and live the life they really have in mind.”