The average amount people in Oxford need to have saved into their pension pot in order to have a basic income in retirement is £386,300 whilst for those in Blackpool it is just £235,160, says easyMoney, the personal finance business from Sir Stelios Haji-Ioannou’s easy family of brands.
Research by easyMoney shows the differences in the average amount people will need to have saved across selected UK cities.
The average cost of retirement is most expensive in London (inner) with people needing to have saved £442,040 by the age of 67. Meanwhile, in Hull and Oldham, savers need less than £250,000.
Radically different life expectancies and average incomes across UK cities means the amount needed to retire comfortably can vary hugely from city to city. To maintain a basic standard of living, industry experts suggest people need a retirement income equivalent to two-thirds of their final salary.
easyMoney says that rising life expectancies mean people need to start building bigger pension pots in order to maintain their standard of living for the duration of their retirement. Anyone relying on the low interest rates provided by banks, government bonds and other cash investments are unlikely to generate the returns needed to do this.
The life expectancy for those aged 65 in 2014-2016 (the most recent period for which there is data), was 84. This means people will need to save for 17 years on average from the retirement age of 67.
Andrew de Candole, CEO of easyMoney, says: “Rising life expectancies should jolt savers into action, regardless of where they live.”
“The cost of retiring is largely dependent on where someone lives and the localised cost of living, with life expectancies varying significantly between some cities. Despite this, all savers need to be aware that life expectancies are increasing and pension pots will have to stretch further.”