Those with a lower standard of living have also seen costs increase sharply. Expenses to cover the minimum standard of living have increased by £1,000 a year for retired couples, who now require £16,700 a year.
A single person would spend £10,900 to cover all basic needs while having enough left over to enjoy the odd social occasion. This is £700 more than they would have needed two years ago.
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 rising cost of transport, both rail and road, has risen 10pc in the last two years, driving up overall spending in retirement.
A “moderate” lifestyle has become £1,500 a year more expensive than it was in 2019, setting couples back £30,600 per annum. This amount is enough for a couple to holiday in Europe for two weeks a year and eat out a few times a month. A single person would need £20,800 a year to enjoy this standard of living.
This increase is mainly down to rises in council tax and the cost of eating out, which increased by £25 per person each month to £100.
Retirees receiving the full new state pension, worth £9,350 a year, will need very little in additional funds to achieve the amount required for a minimum level of living.
But those aspiring to a comfortable lifestyle will need an extra £24,250 a year from their private pension in addition to their state pension.
Only one in six single workers are on track to have an income between moderate and comfortable in retirement.