The Pensions UK ‘Retirement Living Standards’ help savers think in a practical way about the kind of lifestyle they might lead in retirement.
They have updated their standards in line with rising healthcare, food and fuel prices and the need to provide extra financial support to family. They now suggest a single person will need £13,400 each year as a minimum income, £31,700 for a moderate standard of living and £43,900 to be comfortable. For couples, the equivalent numbers are £21,600, £43,900 and £60,600 each year.
These figures represent the amount of expenditure required to achieve a given living standard. You may need to add other costs depending on your circumstances, such as mortgage, rent, social care costs and any tax on pension income.
You can explore this in more detail at website: www.retirementlivingstandards.org.uk. Remember this is generalised guidance and it’s always best to get advice based on your personal situation.
