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Average Cost Of Life Goals Totals £566k

For the average person, achieving major life milestones such as buying a house, having children and saving for retirement costs a total of £566,659, research shows.

According to calculations by Royal London, it would take 25 years for someone on the median graduate net salary of £22,421 to pay this in full, if they were only spending money on their life goals.

The most expensive life goal is getting on the property ladder, with a 10% deposit and a 3% fixed-interest rate mortgage costing first-time buyers an average of £250,148.

Raising two children is estimated to add around £150,000 to the total, and a comfortable pension pot of £300,000 would require a personal contribution of £113,400.

Other key life milestones included going to university, for which average student loan repayments amount to £23,000, and getting married, at the average cost of £30,111.

Becky O’Connor, personal finance specialist at Royal London, said:

“Everyone has different goals and dreams, but looking at a set of conventional goals and comparing it to typical earnings, we can see just how difficult it is to make your long-term dreams a reality.

“The key is to know what you would like to achieve and then plan for it, realistically acknowledging that you need something to live off in the meantime.”

For any help or advice with financial planning talk to RPD

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