People need an extra £26,700 on top of full New State Pension for comfortable lifestyle in retirement
dailyrecord.co.ukNew analysis by Standard Life, part of Phoenix Group, using the MoneyHelper annuity tool, has calculated the pension pot needed to secure a ‘minimum’, ‘moderate’ and ‘comfortable’ standard of living in retirement.
Retirees who want to achieve a minimum living standard in retirement, which includes enough for the basics and one week’s holiday in the UK a year but no car, require an annual income of £12,800.
However, that figure only applies if the person is receiving full New State Pension payments, which are worth £10,600 over the 2023/24 financial year, and an additional annual income of £2,200.
In order to buy an RPI linked annuity - which is a guaranteed income for life - they would need to have amassed around £50,000 in retirement savings at current rates.People looking to retire earlier than the State Pension age, which is currently 66 and rising to 67 between 2026 and 2028, will need to bridge the gap in full amount from any private pension pot or additional savings.Meanwhile, for amoderate retirement standard of living, which allows for a car and one foreign holiday a year, the PLSA calculates an income of £23,300 per year is needed.
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