Trafalgar House has launched an online budget modeller in light of the latest update to The Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards (RLS).

The online tool is designed to be compatible with all scheme types and aims to help members gain a clearer understanding of the true cost of retirement.

The figures from the RLS report, released at the start of this month, found that while the minimum annual lifestyle cost has fallen slightly to £13,400 for a single person, the cost of achieving a ‘moderate’ or ‘comfortable’ retirement lifestyle has increased.

According to PLSA's criteria, the data indicated that a 'comfortable' retirement now requires an estimated annual income of £43,900.

Trafalgar House client director, Daniel Taylor, said that the updated figures are a “clear reminder” that the cost of retirement is shifting, shifting upwards for the majority.

Taylor also pointed out that its Trust & Confidence Index survey found that nearly 48 per cent of members believe they will retire with “significantly” less than they need to retire comfortably.

The survey also revealed that more than half expect to delay retirement or are uncertain when they will be able to retire at all.

However, Taylor said at the same time, member confidence in making financial decisions is “steadily” increasing, which he said, “presents a real opportunity for schemes to step in and provide the guidance, and the tools members need to plan more effectively for their future”.

“Our new online budget modeller translates the PLSA’s guidance into a simple, practical tool that allows members to explore their own unique retirement scenarios,” he continued.

“By comparing projected income against established spending benchmarks, members can adjust variables such as savings levels, retirement age, or lifestyle expectations to see how these changes impact their outcomes.”

He added that planning for retirement is no longer a one-off event or decision, instead, it is a “movable feast”.

Given this, Taylor said it was “essential” that the industry equips schemes with tools that help members make better, more informed financial decisions throughout their journey.
 

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