Cost of comfortable retirement revealed - here's how much you need yearly
The high cost of living is also hitting pensioners as more money is needed for a comfortable retirement.
Pensioners need more money in the bank if they want to be comfortable and afford more than just the basic necessities, pension experts revealed.
A couple will need to budget for around £60,600 a year to live comfortably, the Pensions and Lifetime Savings Association said.
This is £1,600 more than last year.
While around 70% of pensioners retire as a couple, the brunt of expenditure can be particularly hard for single people on one income.
A single person is estimated to need £43,900 a year, which is up by £800 on the previous year.
The PLSA created three different lifestyle groups – minimum, moderate and comfortable – to estimate how much each would cost for people now.
Here is a breakdown of how much you will need to afford each lifestyle.
To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The estimated £13,400 a year would cover all basic needs and leave some for fun, with around £55 a week spent on food shops, £30 a month at a restaurant plus £12 per month on takeaways
£200 a year to maintain a property This option would not be enough for a car, but cover £30 a month for taxis and around £180 a year to cover three train journeys, while a bus pass will be free One week-long holiday in the UK, TV license and streaming services with ads, plus £20 for affordable activities.
Around £450 for clothing and shoes a year, and £20 per person spent on birthday and Christmas presents £31,700 a year would cover £500 a year to maintain your home
Around £56 a week on groceries, £32 a week at restaurants, £11 a week on takeaways, and £106 a month to treat others to a meal out
Enough to cover a three-year-old small car, £22 a month on taxis, and £104 a year on rail tickets A two-week all-inclusive holiday at a three-star hotel in the Mediterranean, and a long weekend off-peak season trip in the UK
TV license and broadband, plus streaming services
£43 a week for activities
Up to £1,548 for clothing and footwear annually
£30 gifts, and extra £1,000 for supporting loved ones The estimated £43,900 is set to bring more financial freedom and luxury options
Around £600 to maintain a property annually
Food shop could be £75 a week, £42 on food outside the home, £21 a week on takeaways, and £106 a month to take others out
On this budget, your car could be a small, three-year-old car, £22 a month on taxis, and £208 a year on train tickets
Two-week Mediterranean holiday at a four-star hotel, some spending money, three long weekend breaks in the UK, with £400 spending money per break, extensive broadband and streaming services, plus £45 a week for activities
Up to £1,548 for clothing and shoes
Presents can cost £50 each, plus an extra £1,000 for family support
Housing, especially for those renting, can be costly.
The estimates leave out housing costs, so people are likely to need to factor in extra costs depending on their situation. More Trending
Many pensioners have enjoyed mortgage-free living, but that could change in the next decades due to the rise of 40-year mortgages.
Experts fear young home buyers with 40-year mortgages might not be able to pay into their pensions, which could have a knock-on effect on their later life, according to the bankers' trade body, the UK Finance.
Zoe Alexander, the director of policy and advocacy at the PLSA, said: 'For many, retirement is about maintaining the life they already have, not living more extravagantly or cutting back to the bare essentials.
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'The standards are designed to help people picture that future and plan in a way that works for them.'
Get in touch with our news team by emailing us at webnews@metro.co.uk.
For more stories like this, check our news page.
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