I’d like to start this article on a positive note and Scottish Widows has given me just the opening. According to the BBC, a Scottish Widows survey of nearly 6,000 showed that, on average, people think they need Â£30,000 a year to live comfortably in retirement.
I’m not as pessimistic as that. Assuming you’ve got no debts and you’ve paid off your mortgage, I think a pension ‘salary’ of Â£20,000 is sufficient for most people. After tax (but not National Insurance as you stop paying it when you start taking your state pension) you’ll have a net monthly salary of Â£1,300. It’s a modest amount, but a prudent pensioner could live on this, regardless of where they live in the country….