Recent research we conducted into retirement in the Top 40 major UK cities has found a huge difference in the cost of retirement across the UK. We found that it costs 82% more to retire in London than the cheapest city, Nottingham, with our figures showing that people who want to live in the capital on a basic income will need a pension pot of £458,478 saved up, compared to just £251,790 for those wanting to retire in Nottingham.
We also found that Edinburgh was the UK’s second most expensive city to retire in, with savings of £379,933 needed, followed closely by Stockport, at £379,542. At the lower end of the scale, the cost of retirement in the second cheapest city, Northampton, is £255,612.
We based our research on the assumption that retirees would need two-thirds of the average median income for that area to live on. These figures estimated that pensioners would live to the local life expectancy and that they would be dipping into their pension pot from the age of 67, which in just over 5 years will be the age from when people can start to claim their state pension.
We believe these findings illustrate how crucial saving a healthy retirement fund is for people who live in an area with an above average cost of living. People should begin putting money in a pension pot as early as possible in order to take advantage of compound interest and ensure they increase their contributions in line with salary increases and promotions.
It’s also important to ensure your money is working hard for you. Keep an eye on your pension to make sure it’s generating healthy returns that will be enough to support your planned post-retirement lifestyle. You can also choose to take advantage of the expertise of a financial advisor who will help you make the most out of your retirement funds through tailored planning objectives and regular reviews.
Read more from us in the Daily Telegraph, Daily Express and Interactive Investor: