A single person would spend £10,900 to cover all basic needs while having enough left over to enjoy the odd social occasion, according to trade body The Pensions and Lifetime Savings Association.
Retirees with this income would be able to holiday in Britain for one week a year and eat out around once a month. This does not budget for running a car – but does include hairdressing and a subscription to film streaming network Netflix at a cost of £1.38 a week.
The cost of a comfortable retirement has jumped by more than £2,000 a year, with pensioners forced to spend more than ever to cover day-to-day basics.
Over-65s must set aside an extra £40,000 in their pension to cover the growing cost of living over a 20 year retirement, an industry report has found.
Enjoying a “comfortable” retirement has become significantly more expensive, costing £2,200 more each year than it did two years ago, when the survey was last run.
Couples must have a combined income of £49,700 each year to meet the PLSA’s “comfortable retirement living standard” – this includes the cost of holidays in Europe for three weeks a year, eating out and visiting the theatre regularly.
A single person would need £33,600, requiring an £600 extra compared to 2019.
The pension wealth required has been driven up by a £161 increase in the cost of council tax for one person, or £214 for a couple. Inflation in the price of leisure activities and goods also pushed up overall spending, adding £7.20 a week, or £375 a year, for a single person.