A typical eighteen year old will need just over £1.7m to sustain an average standard of living until death, according to a survey by Axa designed to shock people into saving.The study also found, a 25 year old will need just over £1.5m in today’s money, a 35 year old, £1.25m, a 45 year old, £0.9m and a 55 year old £0.6m to maintain an average standard of living.
Axa surveyed approximately 2,100 people to calculate the monthly expenditure of everything from accommodation, transport and groceries to pets and holidays.
The average person spends about £240 on groceries, £68 on going out, £24 on hobbies and gives nearly £10 to charity every month. With essential outgoings added, this amounts to an average annual expenditure of approximately£28,455, worryingly higher than the median average annual pay for full time employees, of £24,908.
Axa believes better financial planning could reduce the average total expenditure considerably; calculating people could save as much as £737 by focusing on their money worries, while regular monthly reviews of finances could shave tens and thousands of pounds off lifetime expenditure.
The firm has launched a suite of financial planning tools as part of its My Budget Day campaign. The tools are designed to help people manage their day-to-day finances and to plan for a comfortable retirement and are available from: www.axa.co.uk/mybudgetday
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