One of the biggest retirement questions is also one of the hardest to answer: 'how much income will I actually need?'

According to Richmond Financial Advice, there is no single figure that works for everyone.

It added: "Two households with similar pension pots can need very different levels of income depending on their mortgage, lifestyle, family commitments, health, travel plans and what they want retirement to look like.

"For people approaching retirement in Teddington, the most useful starting point is often not the size of the pension pot. It is the life that pension needs to fund."

Start with the retirement you want

Richmond Financial advice explained that "retirement planning becomes more useful when it moves from a target age or headline pension value to practical questions".

It added: "Do you expect to travel regularly? Will you still have a mortgage or rent? Do you want to help children or grandchildren financially? Are there hobbies or activities you would like to spend more time on? Could you face higher care or health-related costs later in life?

"These decisions affect the income you may need."

MoneyHelper points to the Retirement Living Standards as one way of illustrating different levels of retirement spending, but these are guides rather than personal targets.

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Richmond Financial advice said: "Importantly, the figures assume no housing costs, so someone expecting to pay rent or a mortgage in retirement may need substantially more.

Separate essential and discretionary spending

A useful exercise is to divide expected retirement expenditure into two broad groups, according to Richmond Financial advice.

It added: "Essential spending might include housing costs, food, utilities, insurance, transport and regular household bills.

"Discretionary spending might include holidays, eating out, hobbies, gifts, home improvements and other lifestyle choices."

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