A new report researched by Loughborough University on behalf of the Pensions and Lifetime Savings Association (PLSA) will help people understand how much they will need for a minimum, moderate or comfortable quality of life once they retire.

Importantly, it will inform them how much they need to save on top of their state pension (currently £8,767 for those with the maximum number of NI contributions).

Based on consultations with 250 members of the public around the country, a single person will need about £10k a year to achieve the minimum living standard, £20k a year for a “moderate” one and £30k a year for a “comfortable” lifestyle.

For couples, the minimum standard is £15,700, “moderate” is £29,100 and “comfortable” worked out as £47,500.

These are figures for the whole of the UK, so figures for London and the South East were slightly higher and the rest of the country slightly lower. The figures include home DIY and maintenance, household and personal goods, holidays, food, transport, clothing and social participation.

So what are the differences in real terms?

The research sets out different levels of spending across a basket of items. For instance, a minimum standard of retirement living would include a week’s holiday and a long weekend every year – but only within the UK. A moderate income would allow someone to enjoy two weeks in Europe every year along with a long weekend in the UK. Those on a comfortable retirement income could afford three weeks in Europe every year.

A minimum income would not allow for someone to run a car at all while a moderate income would allow them to buy a three-year-old car every ten years, and a comfortable one would enable them to run a two-year-old car which they replaced every five years.

You can read a more detailed breakdown here: https://www.lboro.ac.uk/news-events/news/2019/october/retirement-living-standards/

Lead author Matt Padley, of Loughborough’s Centre for Research in Social Policy, said: “We’ve known what society agrees is needed at the minimum for a long time now, but we now know what the public think you need for a moderate and a comfortable living standard as well.

“This is important as there is currently very little to guide people in thinking about, planning and saving for retirement. A lot of this was about having greater security, flexibility and more choice in retirement than at a minimum living standard. And the more we can encourage people to think about their financial futures the better.”

The figures don’t include mortgage, rent or social care costs. These and other costs such as tax on pension income may need to be added depending on individuals’ circumstances.

So what sort of retirement are YOU on track for?

Finding out is easy using the RetireEasy LifePlan. Key in your data and you’ll see at a glance just how much you can safely afford to spend in retirement on your current savings trajectory