Budget Planner Retirement How To
Request 1
- Bob wants to set a target income in retirement, but he doesn't know how to start.
- His IFA can run the getBudgetParams call to return a starting point for budget planning.
Response 1
{
"budgets": [{
"id": 1,
"group": "ESSENTIALS",
"name": "Food & drink",
"example": "(Your general household food and drink allowance)",
"furtherInfo": "Your eating and drinking habits in retirement may be different.
You may spend more time at home and so eat-in more often, but equally you may
want to take advantage of not working by eating out more often.",
"high": 5355,
"average": 3911,
"low": 3249
}, {
"id": 2,
"group": "ESSENTIALS",
"name": "Clothing",
"example": "(Your clothes and footwear)",
"furtherInfo": "The amount you spend on clothes and shoes in retirement may be very different
and not necessarily lower than the amount you spend today.",
"high": 2326,
"average": 991,
"low": 495
}, {
"id": 3,
"group": "ESSENTIALS",
"name": "Household bills",
"example": "(This should include council tax, gas, electricity, water, telephone and insurance bills)",
"furtherInfo": "As you are likely to spend more time at home when you retire, your domestic bills such as gas,
electricity, water and telephone are likely to increase.",
"high": 12097,
"average": 6038,
"low": 4651
}, {
"id": 4,
"group": "ESSENTIALS",
"name": "Healthcare",
"example": "(Includes medicine and healthcare products as well as dental bills)",
"furtherInfo": "You may need to spend more money on healthcare in retirement.",
"high": 3973,
"average": 1309,
"low": 511
}, {
"id": 5,
"group": "ESSENTIALS",
"name": "Public transport",
"example": "(Includes bus, train and taxi fares)",
"furtherInfo": "How often you use public transport in retirement may be dependent on your overall health.",
"high": 782,
"average": 464,
"low": 156
}, {
"id": 6,
"group": "ESSENTIALS",
"name": "Other",
"example": "(This could include the amount spent on your pets, for example)",
"furtherInfo": "Please include the amount you are likely to spend on any other items that will be essential to you in retirement.",
"high": 0,
"average": 0,
"low": 0
}, {
"id": 7,
"group": "DESIRABLES",
"name": "Home improvements",
"example": "(This could include a new kitchen, bathroom or new carpets)",
"furtherInfo": "You may want to take advantage of the extra time you have in retirement to tackle some home improvement projects,
but equally you may feel that you'll be happy with the home you've got by then and so won't want to do any extra work other
than basic maintenance.",
"high": 3504,
"average": 1820,
"low": 1085
}, {
"id": 8,
"group": "DESIRABLES",
"name": "Car maintenance",
"example": "(This will include tax, M.O.T, insurance, petrol and the cost of servicing the car)",
"furtherInfo": "If you no longer need to drive to work, for example, you may find that you'll use your car less in retirement.
Conversely, you could find that you use your car more frequently as you have more time for day trips and visits.",
"high": 2706,
"average": 1611,
"low": 542
}, {
"id": 9,
"group": "DESIRABLES",
"name": "Leisure and hobbies",
"example": "(This could include gym membership, books, music, sports etc.)",
"furtherInfo": "You should have more time to spend on your hobbies in retirement, so this may involve increased costs.",
"high": 6153,
"average": 2612,
"low": 881
}, {
"id": 10,
"group": "DESIRABLES",
"name": "Other",
"example": "(For example digital TV subscription)",
"furtherInfo": "Please include the amount you are likely to spend on any other items that will be desirable additions
to your retirement lifestyle.",
"high": 0,
"average": 0,
"low": 0
}, {
"id": 11,
"group": "LUXURIES",
"name": "Treats",
"example": "(For example jewellery or special occasions)",
"furtherInfo": "You may want to treat yourself in retirement.",
"high": 1882,
"average": 1121,
"low": 375
}, {
"id": 12,
"group": "LUXURIES",
"name": "Restaurants",
"example": "(Meals out or take-aways when you don't want to cook!)",
"furtherInfo": "You may hope to take advantage of not working by eating out more often.",
"high": 3264,
"average": 1470,
"low": 787
}, {
"id": 13,
"group": "LUXURIES",
"name": "Holidays",
"example": "(This could include weekends away, longer breaks or even a round the world cruise!)",
"furtherInfo": "The good news is that when you are retired you will be able to travel and take holidays at off-peak rates.
However, you may want to take more holidays or indulge in more luxurious holidays which could offset any saving from off-peak travel.",
"high": 5923,
"average": 2675,
"low": 1017
}, {
"id": 14,
"group": "LUXURIES",
"name": "Gifts",
"example": "(Christmas, Birthdays etc)",
"furtherInfo": "You will still want to be able to give presents to your family and friends when you are retired.",
"high": 1575,
"average": 636,
"low": 256
}, {
"id": 15,
"group": "LUXURIES",
"name": "Other",
"example": "(For example savings for a new car or holiday home)",
"furtherInfo": "Please include the amount you are likely to spend on any other items that will be luxurious additions to your retirement lifestyle.",
"high": 0,
"average": 0,
"low": 0
}
]
}
Request 2
- Bob now has a better idea of average levels of expenses in retirement, and can set his target income.
- He is happy to set an "average" spend on all essentials, with an extra £200 p.a. for car maintenance that he deems essential spending.
- He wants to set a "high" spend on all desirables, with an extra £1000 p.a. to cover his digital TV subscription.
- He wants to set an "average" spend on all luxuries, with an extra £4000 p.a. to cover savings for his dream car.
{
"company": "tools_api_static",
"budgets": [{
"id": 1,
"group": "ESSENTIALS",
"selectedCost": 3911
}, {
"id": 2,
"group": "ESSENTIALS",
"selectedCost": 991
}, {
"id": 3,
"group": "ESSENTIALS",
"selectedCost": 6038
}, {
"id": 4,
"group": "ESSENTIALS",
"selectedCost": 1309
}, {
"id": 5,
"group": "ESSENTIALS",
"selectedCost": 464
}, {
"id": 6,
"group": "ESSENTIALS",
"selectedCost": 200
}, {
"id": 7,
"group": "DESIRABLES",
"selectedCost": 3504
}, {
"id": 8,
"group": "DESIRABLES",
"selectedCost": 2706
}, {
"id": 9,
"group": "DESIRABLES",
"selectedCost": 6153
}, {
"id": 10,
"group": "DESIRABLES",
"selectedCost": 1000
}, {
"id": 11,
"group": "LUXURIES",
"selectedCost": 1121
}, {
"id": 12,
"group": "LUXURIES",
"selectedCost": 1470
}, {
"id": 13,
"group": "LUXURIES",
"selectedCost": 2675
}, {
"id": 14,
"group": "LUXURIES",
"selectedCost": 636
}, {
"id": 15,
"group": "LUXURIES",
"selectedCost": 4000
}]
}
Response 2
- Bob's total expenses in retirement are expected to be £36,178.
- This is the net income required that will be withdrawn from his retirement savings. In order to receive £36,178 net of income tax, he actually needs to withdraw £42,473 p.a. so his target income should be set at £42,473 in retirement.
{
"netEssentials": 12913,
"grossEssentials": 13391.25,
"netDesirables": 13363,
"grossDesirables": 16703.75,
"netLuxuries": 9902,
"grossLuxuries": 12377.5,
"netTarget": 36178,
"grossTarget": 42472.5
}
