The figures are detailed
Whether retirement is years away or you are currently on countdown, working out just how much you'll need to enjoy a comfortable one is no easy task - this is especially true at the moment as the cost of living continues to soar. So just how much do you need for a comfortable life in later years?
Rising costs for everyday items such as fuel and food have contributed significantly to the increase in the amount retirees need for a minimum standard of living, according to the PLSA, while Nottinghamshire Live sister publication Leicestershire Live discovered that the latest inflation update produced by the PLSA found the cost of a 'minimum lifestyle' had increased from £10,900 in 2021 to £12,800 in 2022 – or 18% – for a single person.
The finding led PLSA to champion the need to retain the triple-lock mechanism, saying that the disproportionate increase in the cost of retirement means it is more important than ever the UK Government retains this mechanism. The triple lock promises an increase in the state pension by whichever is highest – earnings growth, consumer price inflation growth, or 2.5% a year.
However, according to PLSA, even the full new state pension would not be enough to achieve a comfortable standard of retirement living for a couple. The association outlined example incomes for couples and how they place in the three retirement living categories of minimum, moderate, and comfortable: