Research[1] has shown that 51% of people are focused more on the short-term financial needs than long-term savings. Only 23% of people know how much they need to save for retirement. 

The Retirement Living Standards

To get an idea of the income you might need when you retire, you can take a look at the Retirement Living Standards by Pensions UK (formally known as the Pensions and Lifetime Savings Association).  The figures have recently been updated to reflect the rising cost of living and increased expectations for grandparents to help support grandchildren financially. 

The three standards

Minimum 

Target income:

• £13,400 a year for a single person
• £21,600 a year for a couple

Summary: 

• All your basic needs with some left over for fun.
• A self-catering or half-board holiday in the UK.
• Eating out once a month.
• Some affordable leisure activities with family and friends once or twice a week.

Moderate 

Target income:

• £31,700 a year for a single person
• £43,900 a year for a couple

Summary:

• Provides more financial security and flexibility than the Minimum.
• An annual overseas holiday and a long weekend off peak break in the UK.
• A takeaway a week and eating out a couple of times a month.

Comfortable 

Target income:

• £43,900 a year for a single person
• £60,600 a year for a couple

Summary:

• Higher than the minimum and moderate lifestyles, and allows for more disposable income.
• Includes extra luxuries such as spa days, theatre trips and holidays abroad.

Find out more

As well as reading the information on the Retirement Living Standards website, you can find clear money help and guidance that’s backed by the Government and free to use, visit the MoneyHelper website for more information.

[1] https://www.pensionsuk.org.uk/Policy-and-Research/Topics/Retirement-Living-Standards