Keeping the “happy” in retirement may depend in large part on whether you have enough money to cover your expenses. If your financial plans are doing well and your savings are flush, you might think you’re on track for a comfortable retirement. But the truth is that you’ll probably need more money than your parents did to enjoy a similar lifestyle.

One reason is that people are living longer than ever. The average life expectancy has risen to nearly 78 years for men and 82 for women. This means that even a modest retirement savings strategy needs to stretch far into the future.

Another problem is that interest rates are historically low. The Bank of England has kept them near zero for several years now, which may help the economy by encouraging people to buy cars and houses, but it hurts those who have saved money for retirement. The interest rate on a ten-year bond is less than two percent, and the dividends paid by stocks are about the same. This might help explain the popularity of applying for equity release through an Equity Release Solicitor. Find out more from an Equity Release Solicitor by visiting Tivoli Legal.

Finally, a good rule of thumb is to aim to replace around 74% of your pre-retirement income in retirement. This includes benefits, pensions, savings and investments.

For younger retirees, the largest expense is usually travel. They want to take that month in the winter sun or go on that world cruise they have always dreamed of. That’s fine as long as you budget for it and don’t spend more than you can afford.