These categories break down into a “minimum” lifestyle, a “moderate” lifestyle and a “comfortable” lifestyle.
For many, even the full state pension, which is worth £9,339 per year, replaces only a small portion of their income while working.
Indeed, when other costs like social care are factored in, the state pension can become a drop in the water of what people need in retirement.
It is therefore important for people to understand what their income will allow them to do in retirement so they can enjoy the lifestyle they aspire to.
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