A new report from Pensions UK has revealed that the cost of a comfortable retirement has risen significantly, with single people now needing £45,400 a year and couples requiring £62,700. This is an increase of £1,500 for singles and £2,100 for couples compared to last year.
The Retirement Living Standards report outlines three levels of retirement: minimum, moderate, and comfortable. A minimum retirement now costs £13,900 for a single person and £22,500 for a couple, covering basics like food, home maintenance, and a week-long UK holiday. A moderate retirement, which includes a small car and one overseas holiday, costs £32,700 for singles and £45,400 for couples.
Despite these figures, Pensions UK estimates that only 9% of people will have enough savings for a comfortable retirement, while 23% may achieve a moderate lifestyle and 82% can reach the minimum standard. The report warns that many people are under-prepared for retirement.
Zoe Alexander, Executive Director of Policy and Advocacy at Pensions UK, said: 'The latest update to the Retirement Living Standards underlines a clear reality for many people, today's saving levels will not be enough for the retirement they expect.' She added that the Government is considering whether minimum contributions need to rise.
