Happiness comes at a price

Published: 17/12/2013

Retirees need over £10,000 every year in order to have a happy retirement, according to a recent survey by LV=.

Talking to a thousand people aged 60-65 the insurer found that the ingredients for a happy retirement included having holidays abroad, spending time with grandchildren, socialising with friends and having a hobby. However these elements come at a cost:

Combine this with the average cost of living (£7,623) and retirees require an annual income of £10,820.

Sadly though many retirees fall significantly short of this figure; almost a third of people with pensions have a total retirement pot of less than £10,000 and therefore rely heavily on the basic state pension to pay for life’s essentials let alone luxuries.

But a happy retirement can still be achieved as many retirees turn to their property to fund their twilight years. Richard Espley, Head of Equity Release at Goldsmith Williams, explains how:

“Having worked hard all our lives it’s understandable why we look forward to a little luxury in retirement. And, going on the results of LV= survey, it’s not like retirees are asking for the moon on a stick so it is really sad to see so many will fall financially short.

“However older homeowners are increasingly using equity release to make up for their poor pension provisions and enjoy a more comfortable retirement.

“In the first nine months of the year older homeowners released £808.19million - averaging £57,286 per household - with 59 per cent using some or all of the equity to improve their lifestyle in retirement.”

Content correct at time of publication