Budget Planner Retirement How To
Request 1
- Bob wants to set a standard target income in retirement, but he doesn't know how to start.
- Bob currently lives on his own outside of London and wants to understand how much income he might need in retirement.
- The PLSA's Retirement Living Standards can be used to help Bob understand the likely spending requirement for a minimum, moderate and comfortable lifestyle.
- His IFA can run the getPlsaParams call to return a starting point for budget planning.
Response 1
{
"budgets": [
{
"demographic": "Outside London",
"marriageStatus": "Single",
"budgets": [
{
"id": 1,
"name": "Total",
"minimum": {
"value": 10232,
"summary": "Covers all your needs, with some left over for fun.",
"description": "A 'minimum' lifestyle covers all your needs, with some left over for fun and social occasions. You could holiday in the UK, eat out about once a month and do some affordable leisure activities about twice a week. About three quarters of employees are likely to achieve at least the minimum standard."
},
"moderate": {
"value": 20211,
"summary": "More financial security and flexibility.",
"description": "A 'moderate' lifestyle provides more financial security and more flexibility. You could have one foreign holiday a year and eat out a few times a month. You'd have the opportunity to do more of the things you want to do. Around half of employees are projected to have an income between minimum and moderate."
},
"comfortable": {
"value": 33039,
"summary": "More financial freedom and some luxuries.",
"description": "A lifestyle that allows you to be more spontaneous with your money. You could have a subscription to a streaming service, regular beauty treatments and two foreign holidays a year. About one in six employees are projected to have an income between moderate and comfortable."
}
},
{
"id": 2,
"name": "House",
"minimum": {
"value": 2576,
"summary": "DIY maintenance and decorating one room a year.",
"description": "Bills and insurance paid, with a budget of £2576 a year for DIY decorating and maintenance. Economy brand appliances."
},
"moderate": {
"value": 4110,
"summary": "Some help with maintenance and decorating each year.",
"description": "Boiler servicing and cover plan. £4110 a year for decorating and maintenance with some professional help."
},
"comfortable": {
"value": 8805,
"summary": "Replace kitchen and bathroom every 10/15 years.",
"description": "Boiler servicing and cover plan. £8805 a year for professional decorating and maintenance. Weekly lawn cutting and occasional help with gardening and occasional deep cleaning."
}
},
{
"id": 3,
"name": "Food & drink",
"minimum": {
"value": 2664,
"summary": "A £51 weekly food shop.",
"description": "An inexpensive meal out once a month, as well as one or two cheaper takeaway meals. A £51 weekly food shop at a mainstream supermarket, with mainly supermarket own label goods. A £4 bottle of wine and standard lager every week."
},
"moderate": {
"value": 3791,
"summary": "A £73 weekly food shop.",
"description": "Dine out at a restaurant about once a month, as well one or two takeaway meals. A £73 weekly food shop at a mainstream supermarket with 50% branded goods. A £6 bottle of wine and craft beer."
},
"comfortable": {
"value": 7351,
"summary": "A £141 weekly food shop.",
"description": "Dine out at a restaurant about once a week, as well the odd takeaway meal each month. £100 per month to treat others to a meal out. A £141 weekly food shop with 75% branded goods. An £8 bottle of wine and craft beer."
}
},
{
"id": 4,
"name": "Transport",
"minimum": {
"value": 1230,
"summary": "No car.",
"description": "Use your free bus pass for most journeys, and £24 per week per household for taxi journeys. £100 a year for rail journeys for visiting friends and family, using senior rail card."
},
"moderate": {
"value": 3508,
"summary": "3-year old car replaced every 10 years.",
"description": "A single car per household (three years old, replaced every 10 years). One or two longer distance train journeys to visit friends and family. £67 per week per household for taxi journeys"
},
"comfortable": {
"value": 3671,
"summary": "2-year old car replaced every five years.",
"description": "A two-year old mid-range SUV or estate replaced every five years. £200 a year for longer distance train journeys to visit friends and family plus a railcard. Taxi journeys of £71 a week per household."
}
},
{
"id": 5,
"name": "Holidays & Leisure",
"minimum": {
"value": 2330,
"summary": "A week and a long weekend in the UK every year.",
"description": "About £250 for one seven-night, half-board coach holiday, plus £150 spending money, and a long weekend by rail and B&B accommodation, both in the UK. Basic TV and broadband. £20 a week for one or two leisure activities."
},
"moderate": {
"value": 6212,
"summary": "2 weeks in Europe and a long weekend in the UK every year.",
"description": "About £1,100 for a 7-10 night holiday abroad each year and £200 spending money, and a long weekend in the UK with B&B accomodation. £60 monthly TV and internet subscription, two weekly activities (e.g. cinema, swimming) totalling £35 per week."
},
"comfortable": {
"value": 9197,
"summary": "3 weeks in Europe every year.",
"description": "A summer and winter 3* or 4* half board hotel break abroad, for three weeks in total, for around £2,500 a year. Three weekly activities (e.g. cinema, gym class) totalling £50 per week. £60 monthly TV and internet subscription, plus £5.99 for a streaming service."
}
},
{
"id": 6,
"name": "Clothing & Personal",
"minimum": {
"value": 466,
"summary": "£466 for clothing and footwear each year.",
"description": "£350 a year on clothes and £110 for shoes. £15 dry haircut every six weeks, NHS dental care and mid-range glasses."
},
"moderate": {
"value": 748,
"summary": "£748 for clothing and footwear each year.",
"description": "£500 a year for clothes and £250 for footwear. £35 cut and blow dry and £10 colour every six weeks. NHS dental care and mid-range glasses."
},
"comfortable": {
"value": 1496,
"summary": "£1,000 - £1,500 for clothing and footwear each year.",
"description": "£1,000 a year for clothes and £500 a year for shoes. £75 cut and colour every six weeks. NHS dental care and mid-range glasses."
}
},
{
"id": 7,
"name": "Helping Others",
"minimum": {
"value": 966,
"summary": "£19 for each birthday present.",
"description": "About £10 each for 12 birthday and 12 Christmas gifts a year."
},
"moderate": {
"value": 1842,
"summary": "£35 for each birthday present.",
"description": "About £30 for 12 birthday and 12 Christmas gifts plus £150 a year for helping the family."
},
"comfortable": {
"value": 2518,
"summary": "£48 for each birthday present.",
"description": "About £50 each for individual birthday and Christmas gifts, plus £1,000 a year for helping the family."
}
}
]
},
]
}
Request 2
- Bob now has a better idea of "The standards" of expenses in retirement and is able to explore the breakdown of his annual standard of living expenses, given a range of common goods and services.
- Bob can choose a variation of the six services each at a standard of his choosing.
- Bob might decide that a "comfortable" budget for his "house", may be best suited due to living outside of London.
- Bob may then choose a "minimum" budget for "Food & Drink" because he is self-sufficient in this area.
- Bob may then choose "moderate" for the remaining four services.
- He would make a request with these inputs.
Response 2
- Bob will then recieve the net income required that he could withdraw from his retirement savings. In order to receive £23,779 net of income tax, he actually needs to withdraw £26,973.75 p.a. so his target income should be set at £26,973.75 in retirement.
- Bob's total annual expenses in retirement are expected to be £23,779 based on the choices he made above.
{
"netTarget": 23779.0,
"grossTarget": 26973.75
}
