It's easy to assume you'll need a similar income in retirement as during your working life to maintain your lifestyle. However, many people find they spend less when they stop working.

A helpful rule of thumb might be to aim for a budget of around two thirds (67%) of working your salary to enjoy a comfortable lifestyle.

This guideline assumes that you’ll reduce some of your expenses (like your mortgage payments and childcare), so the remaining income is similar to what you’ve been used to living on.

What do other people spend in retirement?

Research by the Pensions and Lifetime Savings Association (PLSA) suggests the following guidelines, although these are likely to increase over time. Please note the figures shown are after tax. Refer to PLSA guidance for the suggested pre-tax income to meet these targets.