Cost of life to rise 64% by 2033 by Iain Macritchie, Founder, Liberty Wealth Management on 30-Sep-2013

Retirement is one major life stage, often overlooked in terms the savings that are required, not just in the lead up to retiring, but from a much earlier age. Iain Macritchie, Founder of Liberty Wealth Management tells us about their research that uncovered the fact that by 2033 the cost of retirement will rise to over £1.7 million.

"We’re very pleased to have produced some research which highlights the importance of putting some money away for a rainy day," says Iain. "We really hope that it prompts people to start saving now, considering their needs in the future."

"To display the results of the research, we have created a fun and engaging interactive 'Cost of Life' infographic' which highlights the projected costs of life’s biggest expenses. If the UK’s average inflation rate continues to rise by 2.5% year on year, Brits can expect the biggest purchases and investments they face in life to increase by nearly two thirds within the next 20 years."

The Infographic, inspired by the famous 'Game of Life' board game, is a useful tool for enlightening the British public about rising costs and to indicate how much families can expect to have to save for the future. Following reports that around 15 million British nationals are not saving money for their future, the research aims to educate and enlighten, encouraging Brits to start saving money now.

"We look at the biggest expenses most Brits can expect to encounter at some point in their life," continues Iain. "This includes the overall cost of marriage, a new car, the price of a new house, a family holiday and the overall cost of retirement. The infographic then emphasizes how these expenses will increase over the next 5, 10, 15 and 20 years."

The research reveals some surprising projections about the increased cost of major events and personal investments, at various life stages. For example, the average cost of going through university is predicted to increase from £88,700 to £145,000 by 2033, which can largely be attributed to the increased tuition fees.

The research also highlights other major investments, including the estimated average cost of raising a child to the age of 21, which is projected to rise from £222,000 to over £364,000 in the next 20 years. The rising costs of childcare and education are the main factors which influence the increasing costs of raising a child. The cost of education has nearly doubled in the last decade and parents now have to pay more than 60% more for childcare.

"Opening up a savings account and putting aside some money every month, will better prepare the British public for rising prices in the future. There are a number of options available to start saving now, whether you wish to open up a tax free ISA account or transfer money into long-term savings," concludes Iain.

Click here to use the 'Cost of Life' infographic to discover how much you need to save for major life events in your future.

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