New research by the Pension and Lifetime Savings Association (PLSA) Loughborough University has found that a single person needs a total pension income of £12,800 a year after tax to meet the “minimum” living standard.
A “moderate” lifestyle will cost retirees £23,300 a year, while they will need £37,300 a year to be “comfortable”.
This is more for couples with £19,000 enabling them to have a minimum standard of living, £34,000 for a moderate living standard and £54,500 for a comfortable level.
The cost of retirement has jumped by almost £2,000 in the last year, with millions of people expected to struggle with their day-to-day living costs.
The research shows that just 72 percent of the total population is on track to reach at least the minimum standard of living in retirement, while 20 percent will hit moderate and eight percent will be able to live comfortably.
READ MORE: Pension ‘mission impossible’ as savers need £530k for comfortable retirement
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The state pension goes some way to cover costs but the minimum standard of living cannot be achieved without a private pension or savings.
For pensioners who have made the maximum 35 years of National Insurance contributions, they can receive an annual state pension of £10,600.20.
Meanwhile, those who retired before April 6, 2016, or on the basic state pension rate, will receive £8,122.40 a year.
