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Written by Wesleyan

How much do dentists need to thrive in retirement?

dentists
pensions
3 min read
mature lady in cafe holding a mug

Do you want to survive in retirement, or do you want to thrive?

Gordon McMillan looks at recent costs from the Retirement Living Standards report and what they could mean for the kind of retirement you’d like…

Do you know what you’d like to do in retirement? And, more importantly, do you know how much it would cost for you to do it?

It’s a relatively safe bet that most of you answered yes to that first question, or at least have a general idea, but no to the second one.

That’s not uncommon. Most people, no matter how much they love their job, look forward to the day they can relax and enjoy the fruits of their labour. But a lot less people actually consider how much money they will need to have the kind of retired life they’d like.

And, as with everything when it comes to financial planning, the earlier you do this, the better. The more time you will have to build a decent pot of money and the more flexibility you’ll have to alter your plans if necessary.

But how much money enough?

The Pensions and Lifetime Savings Association (PLSA) recently released their Retirement Living Standards report which shows how much one person needs per year to live a minimum, moderate or comfortable life in retirement.

If we look at the lower end of the spectrum, the PLSA suggests £10,900 a year is needed for a minimum retired life. That would cover a £41 weekly shop, a week and one long weekend in the UK for holidays, the ability to decorate one room in your house a year and no car.

At the other end, £33,600 is needed for a comfortable life. In this scenario, you could afford a £59 weekly shop, three weeks’ holiday in Europe, the ability to replace your kitchen or bathroom every 10 – 15 years and a two-year-old car replaced every five years.

That’s quite a difference. So, whether retirement is still some way off or coming up quickly, a good question to ask yourself is: do you want to simply survive, do you want to be comfortable, or do you want to take retirement by the scruff of the neck and have an absolute ball?

As dentists, you work incredibly hard and earn significantly more than the average UK wage. When you’re working and earning regularly, it’s easy to live a lifestyle that fits with that income.

When you finally retire and hang up the loupes, is this the kind of lifestyle you want to continue? Would you be satisfied with a minimum retirement or do you want something closer to the comfortable end of the scale?

Are you close or are you miles away?

Once you know what you’re aiming at in retirement, you need to know how close to the target you are.

Our Specialist Financial Advisers can help you to understand your current position and plan your perfect retirement from there by ensuring that you have the sufficient retirement income and capital that you need for the lifestyle you want.

The past two years have made a lot of people reflect on the kind of life they want to have now, with many people switching jobs, moving house or changing their work patterns. 

It’s also important to consider the kind of life you want to have in the future. And, of course, how what action you take now will impact that.

If you’d like to get your retirement plan on track for the new year and receive further advice in this area, you can speak to a Specialist Financial Adviser from Wesleyan Financial Services as part of a no obligation financial review.

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