Our new online budget planner is now available in Pension Planet Interactive.

How much will people need to live on in retirement?

Recent research shows that only 26% of people know what they are targeting to live on in retirement. 40% of people don’t know what to target and 34% say they are not planning for retirement at all. (Source: Coyne Research, December 2017)

Some expenses may decrease in retirement, retirees might have paid off their mortgage and their children have finished college. Other costs, such as electricity bills, heating bills and medical expenses, may actually increase in retirement.

So how much will somebody need to live on in retirement?                        

Our new Budget Planner helps to understand how much items may end up costing. The online tool allows users to select from different items they know they will spend money on in retirement.  We assume a basic cost of living and then users can add items from different categories such as health, leisure, motor costs and other items.  The tool then shows what level of income people might need in retirement, displayed as weekly, monthly or yearly amounts.

All costs are based on an individual person and can be adjusted if required. 

What’s next?

People can then compare expected expenses against their projected individual pension plan outcome as shown in Pension Planet Interactive and see if they are on track with their savings or if they need to take action to improve their situation.

The online Budget Planner is now available to all Defined Contribution (DC) and Personal Retirement Savings Account (PRSA) members through Pension Planet Interactive www.pensionplanetinteractive.ie

Cost assumptions are based on estimates at May 2018.