A life of luxury would cost a single person £31,000 every year or £41,000 for a two-person household, the Which? report found.
Someone who could take that income would be able to afford both the “essential” and “comfortable” standards of living as well as extended or long-haul holidays, health club memberships, expensive meals out and a new car every five years.
The “luxury” lifestyle is achievable for anyone who has saved up £422,140 by age 65 for drawdown. Securing that via an annuity would cost £671,000.
Which? calculated that a basic retirement would cost £13,000 per year for a single person, so the state pension falls short of this. Savers need £5,048 per year from their personal savings just to make ends meet, covering food and drink at home, housing payments, transport, bills, insurance and clothes.
This would require £123,365 to buy the income via an annuity, or £77,350 if a pensioner opted for drawdown.