Retired Britons need a hefty income to enjoy life and pay the bills according to the UK’s leading consumer group.
Retirees need between £26,000 and £19,000 a year to live a comfortable life depending on whether they are part of a couple or single, says consumer group Which?
A married couple would need to save a private pension pot worth £154,700 and a single person – who would only get one state pension and no personal income tax break – would need to save £192,290.
This would cover household bills, some short haul flights, alcohol and donations to charities.
Those seeking the finer things in life in retirement s, such as expensive meals, long haul flights and a new car every five years, would need incomes of £41,000 or £31,000 per annum.
Which? Did its calculations based on people investing their pension at 65 and drawing on it for decades, with investment growth of 3 percent, inflation at one percent and charges of 0.75 percent.
Which? surveyed nearly 7,000 retired people members of the consumer group.
At the start of this year, the British state pension rose by just £4.40 per week, the smallest rise possible allowed by legislation.
The increase meant that new pensions rose from £175.20 to £179.60 per week, an increase of just £228.80 per year.
However, the old basic-rate state pension rose by £3.40 per week from £134.25 to £137.65.
Under current rules, pensions rise every year by the highest of prices, earnings or by 2.5 per cent.
With earnings reduced by coronavirus and prices rising just 0.5 per cent, that meant the 2.5 per cent figure was used to set pensions in 2021.
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