Retirement planning - PLSA Retirement Living Standards

The Pensions and Lifetime Savings Association (PSLA) has published the new Retirement Living Standards to help people understand the cost of the kind of retirement they wish to have.

Research has shown that 51% of people focus on their current needs and wants at the expense of providing for their future and only 23% of people know how much they need to save.

The standards are pitched at three levels:

1. Minimum - £10,200 per year for a single person, or £15,700 for a couple. This would cover a holiday in the UK, eating out once a month and some affordable leisure activities twice a week.
2. Moderate - £20,200 per year for a single person, or £29,100 for a couple. This would provide, in addition to the minimum lifestyle, a two-week holiday in Europe and eating out a few times a month.
3. Comfortable - £33,000 per year for a single person, or £47,500 for a couple. This would achieve both the minimum and moderate lifestyles, plus extra luxuries such as spa days, theatre trips and those important holidays.

If you want to learn more about what the PSLA says about how much to save for retirement, visit https://www.plsa.co.uk/policy-and-research-defined-contribution-retirement-living-standards