£305,000 needed for a ‘comfortable’ retirement

According to consumer group Which?, £305,000 is the price tag for pensioners with an annuity to enjoy a "comfortable" retirement, equating to £19,000 per year for a one-person household and £26,000 for a two-person household.

These figures include the average state pension payout of £8,060, so single savers would have to ensure their pension could provide £12,548 per year to get their annual pension payment to £19,000 after tax.

According to the consumer group, £13,000 and £18,000 per year is needed for single-person and two-person households respectively to have an "essential" lifestyle.

£31,000 and £41,000 per year is needed by single pensioners and couples respectively, meanwhile, to fund a "luxury" lifestyle.

Things look better for those who opt to get their pension from an income drawdown. For instance, a couple looking to get £26,000 a year would only need to save £154,700 if they opted for income drawdown, compared to £265,420 if they got an annuity.

Talk to us about your retirement plan.

 

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