'Comfort' warning issued to state pensioners who have less than £43k income

Pensioners who have an annual income less than £43,100 are being alerted to the rising cost of a comfortable retirement as new figures emerge. According to the latest statistics, to achieve a "comfortable" standard of living in retirement, a single person now needs an annual income of £43,100.

For couples, the required figure has risen to £59,000 a year, which is an increase from £54,500 just twelve months prior. Nigel Peaple, Director Policy and Advocacy at the Pensions and Lifetime Savings Association (PLSA), expressed: "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 added: "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."

Moreover, Peaple highlighted: "It is also worth noting 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 makeup for periods not saving."

A "minimum" retirement standard now necessitates an annual income of £14,400 for a single person, a jump from last year's £12,800. This figure covers a couple’s weekly groceries at roughly £95, along with a UK holiday and monthly meals out, albeit not including the expenses of running a car, reports Birmingham Live.

On the "moderate" retirement spectrum, single individuals will need £31,300 per annum, which is notably an £8,000 spike from the previous year. Couples seeking this moderate lifestyle should aim for £43,100 a year, up from £34,000, ensuring they can afford weekly groceries for £100, upkeep of a modest second-hand car, and European getaways.