Warning issued to state pensioners who have less than £43,100 income

A warning has been issued to pensioners who have less than £43,100 income. The latest statistics show that the cost of a comfortable retirement has risen, and for a single person, achieving a "comfortable" retirement standard now requires £43,100 annually.

For couples, the figure rises to £59,000 per year, an increase from £54,500 twelve months earlier. Nigel Peaple, Director Policy & Advocacy, PLSA, said in a statement: “The cost of living has put enormous pressure on household finances over the last year and, as the research shows, this is no different for retirees.

"It’s important for workers saving for retirement to remember the standards are not prescriptive targets, they are a tool to help you engage with the type of spending you think you will do in retirement and to help you plan for it.

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“It is also worth highlighting that a couple who each has a full entitlement to the state pension will achieve the Minimum level, and if each is paid average earnings throughout their working life, they have a good chance of enjoying many aspects of the moderate living standard. Working and saving is likely to vary over a lifetime, for example taking time off to have children, so it is important to adapt workplace pension contributions to make up for periods not saving.“

A "minimum" retirement standard requires £14,400 annually for a single person, up from £12,800 the previous year. This basic level covers weekly groceries of around £95 for a couple, a UK holiday, and monthly dining out, but excludes running a car.

For a "moderate" retirement, single people need £31,300 annually, marking a significant £8,000 increase from the previous year. Couples aiming for a moderate standard require £43,100 annually, up from £34,000, allowing for £100 weekly groceries, running a small second-hand car, and European holidays.