HOME

HOME
OUR HOME

tips

tips
BLOGGING TIPS

PREGNANCY

PREGNANCY
PREGNANCY

Get A Glimpse At What Your Future Could Look Like - Shape My Future (Ad)


I often wonder what the future will be like when I retire, even more so now that I have children and hopefully some day have grandchildren too. Currently the retirement age in the UK is 68, I used to think this was old but now looking at my grandparents I don't think it's that late to retire at all. In fact I once worked with a fantastic hardworking lady until she passed away when she was 75! Anyway, I digress. I'll admit I don't have a pension and it's got me worried about the future and how I'd be able to live off the state pension which is currently £156 a week.


Aviva got in touch and asked me to try out their Shape my Future tool, which asked me to answer several simple questions to find out what my lifestyle might be like when I retire. The questions are basic about yourself and your budget and then you're given a lifestyle breakdown with your weekly balance based on your budget and lifestyle assumptions.


As I previously mentioned I don't currently have a pension as none of my workplaces have offered one and I don't have my own one set up either, so I don't currently have any pension savings. However, I recently quit my payroll job and am now self-employed full time and have been thinking of setting one up and depositing a small amount each month. So I answered the questions as if I didn't have any pension savings but would be putting aside £30 a month which I am starting to do this month.

Weekly balance at 68 / Weekly balance at 70

As you can see above, if I carried on doing this until I retire at the age of 68 I would have a budget of £171 a week which includes £156 State Pension. If I retired at the age of 70 instead of the UK average at 68 I would have a budget of £192 so it may be worth working for a couple more years especially as more people are living for longer these days.
Aviva have challenged us to live off the weekly pension budget that I am given in the tool and share my experience afterwards of how we managed. I am looking forward to the challenge as I'm not that great at budgeting with my money so could do with a kick to get started and manage my finances better.

When I first saw the result I thought it was pretty low, but considering by then I should have paid off any mortgages and obviously wouldn't have any childcare costs to take into account it sounded pretty reasonable. So this week I will be living off the state pension of £156 which will be used for food, petrol, school dinners, days out and will also go 1/4 towards any household bills. Come back next week to see how we got on!

Wondering what your lifestyle might be like when you retire? Use Aviva's Shape my Future tool to find out by answering a few simple questions. Why not give it a go right now? After all, there's no time like the present...

The Aviva Shape my Future tool uses simple inputs to give a basic idea of retirement income. Details of assumptions are available at Aviva.co.uk

5 comments

  1. I was actually having this conversation with a friend two days ago as he is older than me and was talking about how he was seeing his financial advisor after our meet up about his many pension savings he has put away. I am like you and haven't put anything away yet and i am looking at doing this as it seems quite scary to think that if we didn't, we would only have the state pension each week which really isn't alot and would never allow you to have luxuries!

    ReplyDelete
  2. Wow that's not exactly much is it? Is this disposable income or would you actually have to pay rent, bills etc using that money? If so, that's near impossible. I'll just hope Amy does some ridiculously well-paid job when she's older...

    ReplyDelete
    Replies
    1. Crazy isn't it! Which is why I want to start saving for a pension now. It's money I'd have to pay the bills with but by then hopefully i would have paid off a mortgage otherwise i'd be screwed! x

      Delete
  3. Oh it's a horrible thought!! I don't think I want to know, we haven't had good jobs that gives us pensions or help towards them so I dread to think what ours would come out like!!

    ReplyDelete
  4. I haven't got a pension and it's something that Tom keeps telling me to look into it! x

    ReplyDelete

Thank you so much for taking the time to leave a comment. I love reading them all and will try my best to answer all of your questions. If you would like to contact me for a quicker response please feel free to tweet me at (@ohsoamelia_blog) or email me. Kerry