Calculating your monthly budget in retirement can be a difficult process, but understanding your costs can help you better plan your finances.
Firstly, it's time to review your current spending habits, and categorise them accordingly.
Consider how your spending habits might change once you retire. Consider whether your mortgage will be paid by the time you retire, and any additional money you may spend on leisure and hobbies.
Use our pension income calculator to find out what income your pension could give you and find out how consolidating your pension pots could boost your savings.
The state pension currently pays up to £185.15 per week (2022/23) for people retiring on or after 6th April 2016. This is available once you reach your retirement age, but you'll need to meet the eligibility criteria.
With your estimated outgoing in retirement, pension income calculation and state pension, you'll be able to see if there's a shortfall. If there is (and even if there isn't) take a look at our tips on how to boost your retirement income.
Life expectancy and inflation.
It’s important to consider how long your retirement might last and the impact inflation may have on your income:
The means you will probably need to use all your sources of income. These could include personal and company pensions, state pension, savings and investments (ISA's), equity in your home and other income such as inherited wealth to support you in retirement.
 ONS Statistical Bulletin (2014), Cohort life expectancy at age 65