Pension warning as Britons ‘need £37,300’ for ‘comfortable’ retirement

Many people will be planning towards dreams and goals for retirement, but how achievable these are typically hinge on how much money a person has at their disposal. Thankfully, the state pension is made available to millions of people which could help with financial security in retirement.

Not everyone will receive it, but the full new state pension will be worth £10,600 per year from April 2023 onwards.

This could go a long way to funding the kind of retirement a person hopes for.

However, according to the Pensions and Lifetime Savings Association’s Retirement Living Standards, those who want a more comfortable later life will need more funds at their disposal.

A comfortable retirement is described as a lifestyle which allows Britons to be “spontaneous” with their money.

READ MORE: Pension age is changing as some Britons set to wait longer for access

For a moderate standard of living in retirement, the PLSA estimates some £23,300 will be needed by a single person, and £34,000 for couples at present.

This lifestyle offers slightly more flexibility, with one foreign holiday a year, and opportunities to eat out a few times a month.

At its core, the moderate standard of living offers Britons the opportunity to do more of what they would like to do.

The PLSA has said the living standards are designed to help people picture the kind of life they want in retirement.

The website explained: “By giving savers a general figure that they can understand, our hope is that savers can then start to develop their own personal targets based on their individual circumstances and aspirations.

“Like the ‘five a day’ or 5-a-day healthy eating maxim, the PLSA hopes the Standards will one day become a rule of thumb for retirement planning.”