DWP state pensioners who don't receive minimum income urged to take action

Pensioners on an income of less than £43,100 have been issued a stark warning, as new figures indicate the rising cost needed for a 'comfortable' retirement. According to recent statistics, to maintain a "comfortable" standard of living in retirement, a single person now needs an annual income of £43,100.

For couples, this number has increased to £59,000 from last year's £54,500. Nigel Peaple, Director Policy and Advocacy at PLSA, commented: "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."

He went on to say, "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.

"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 makeup for periods not saving," he advised, reports Birmingham Live.

A "minimum" standard of retirement now requires £14,400 a year for a single person – an increase from £12,800 the year before. This basic level would cover weekly groceries, costing roughly £95 for couples, a holiday in the UK, and the occasional meal out, but does not include the costs associated with keeping a car.

For those looking at a "moderate" retirement lifestyle, singles will need an annual income of £31,300, which is a steep rise of £8,000 from last year. Couples who wish to maintain a moderate lifestyle during their retirement will need £43,100 per year, jumping from the previous figure of £34,000, allowing them to spend around £100 on weekly groceries, run a small second-hand car, and enjoy holidays in Europe.