Personal Finance

Friday 1 August 2014

Key to a happy retirement. . . no less than €18,400 a year

Published 25/05/2014|02:30

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Louise McBride

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ACCORDING to a new report, €18,400 a year is enough to keep you happy when you retire.

The report, by the National Employment Savings Trust (NEST) – a pension fund backed by the British government, found that most pensioners want around €18,400 a year to live comfortably.

NEST asked more than 2,000 pensioners how much they were living on – and how well they were able to afford their household bills.

About two-fifths of pensioners living on a household income of between €18,400 and €24,500 a year said they were financially comfortable – compared to only a quarter of those living on less than €18,400.

One-third of those living on less than €18,400 said they found it hard to afford their energy bills, and a quarter struggled to pay for their groceries.

Women are more likely than men to live on less than €18,400 when they retire, according to the report.

One in four women pensioners live on €12,300 or less a year – compared to just one in 10 men. "€18,400 a year seems to be the basic threshold for comfort and financial stability in retirement, based on what pensioners think and feel about their lives in retirement today – regardless of how much they earned when they were working," said the report.

The report found that a pensioner's overall satisfaction with life increases by about 7 per cent for each additional €6,100 of household income they have – although that satisfaction starts to level out when their income reaches €49,075 a year.

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