£920k needed in retirement by wealthiest 10%

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Newly retired 65-year olds in the UK’s wealthiest 10% of households will need to spend £920,000 to maintain their standard of living over a 20 year retirement, over twice the amount that would be spent by the average household, according to wealth management firm Heartwood.

The firm’s analysis reveals that over the next 20 years, today’s wealthier pensioners will spend over £146,000 on recreation and culture (16% of total expenditure), £130,000 on housing and energy and £136,000 on food and drink. Approximately £89,000 (10%) will be spent on transport while restaurants and hotels are set to account for £60,000 of their retirement pot.

However, given falling retirement incomes and the rising cost of living Heartwood believes that even better off pensioners may have to reign in their spending and will be forced to adjust their lifestyle aspirations.

Tony Slocombe, divisional director at Heartwood, said: “Today’s 65-year old baby boomers are expected to live at least another 20 years and for the wealthier amongst them this will mean footing a bill of around £920

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