An arm and a leg for retirement?
A recent article published figures of how much is needed to retire comfortably in each US state. Prompted by this, we at Marketing Metrix decided to look at how much is needed to retire for each county in the UK.
What we did
We calculated the amount needed to be invested in an annuity pot to provide the equivalent of the average wage for each county in the UK. Based on current annuity rates, for every £100,000 saved up in the retirement pot, you will be able to receive £4,750 per annum post retirement.
Think about it - you’ve saved a whopping £100k over your lifetime and would only get £4,750 per year, or just over £90 a week!
Visualising the UK:
The fine print
There is no surprise that England’s capital city, London, leads the way in the ranks. To live a modest retirement in London you will need to have saved up a staggering £757,895 to invest into your retirement annuity! Aberdeen city is close behind with Scottish highlander retirees needing £736,842 for a modest retirement, this is due to it costing £3,000 a month on average to live in Aberdeen! However, slip out of the city and their Highland retiree counterparts will only need £505,236 in their pot – a decrease of just over 30%.
In contrast to the US, moving down to the south west coast will leave you needing the smallest pot of them all. Cornwall leads the way with one of the cheapest areas to retire in – you will need on average £463,158. With some locations in Cornwall only costing a shocking £1,321 a month to live, this pot average is no surprise.
As a point of reference, if Adele put all her money into a pension pot, based on our calculations she would get £4,275,000 a year!