23rd December 2020
The Pensions and Lifetime Savings Association (PLSA) has published a new set of ‘Retirement Living Standards’ to help us all picture what kind of lifestyle we might have in retirement and what it might cost.
Pitched at three levels of minimum, moderate and comfortable, the standards are based on a basket of goods and services including household bills, food and drink, transport, holidays and leisure, clothing and personal and helping others.
The aim is that by helping us picture the lifestyle we want, and understanding the cost, we will be encouraged to better plan our retirement saving.
Roughly speaking, a single person will need about £10,200 (£15,700 for a couple) a year to achieve the minimum living standard. This should cover all our needs (except housing) plus some extras such as an annual holiday in the UK, eating out once a month and some affordable leisure activities about twice a week.
For a moderate living standard £20,200 (£29,100 for a couple) a year would be required and £33,000 (£44,500 for a couple) a year for a comfortable standard.
For more information, please visit the PLSA Retirement Living Standards website.