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.
The state pension currently pays up to £175.20 per week (2020/21) 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.
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.