The Retirement Living Standards are designed to give people a realistic picture of the lifestyle they could have in retirement and the income needed to achieve it. They set out three levels of retirement living: Minimum, Moderate, and Comfortable.
The updated annual income figures are:
- Minimum lifestyle: £13,900 for one person, or £22,500 for a couple
- Moderate lifestyle: £32,700 for one person, or £45,400 for a couple
- Comfortable lifestyle: £45,400 for one person, or £62,700 for a couple
These figures reflect rising everyday costs, including food, household bills, transport, leisure activities, and hobbies.
Current estimates suggest that around 82% of working people are on track to achieve the Minimum standard of living in retirement. However, only 23% are expected to reach the Moderate standard, and just 9% the Comfortable standard.
For many people, this may be lower than the retirement lifestyle they hope to achieve. Saving more throughout your working life could help reduce the risk of a significant drop in income when you retire.
To learn more about the Retirement Living Standards and explore what they could mean for you, visit: www.retirementlivingstandards.org.uk.