The cost of retirement increases (again)

Edward Savage
Personal Finance Editor
May 19, 2024 9:43 AM

The cost of retirement increases (again)

The amount you need to live on in retirement is reviewed every year by the Pensions and Lifetime Savings Association (PLSA), who put together the Retirement Living Standards.

The cost of retirement increases

This year, there’s been a whopping increase, thanks to the cost of food increasing and higher energy bills (among other things going up in price). With a moderate retirement income increasing by a massive £8,000 (definitions covered below).

Here’s the change in the yearly income you’ll need in retirement:

Retirement Standard Previously Now
Minimum income £12,800 £14,400
Moderate income £23,300 £31,300
Comfortable income £37,700 £43,100

  • Minimum: this is the basics that you need to live on (a small budget for food, bills and clothing).
  • Moderate: this is all the essentials (with a higher food budget) with a little bit left over for something like a holiday in Europe.
  • Comfortable: this is to live comfortably (not the high life), with a higher budget for food and clothing, a longer holiday, and a newer car. 

Learn more on the Retirement Living Standards website.

There’s also some more bad news with rumours the State Pension age (the age you get the Government pension) might rise to 71 in future too – and that’s only £10,600 per year, so not enough to live on, on its own.

State Pension amount

If you’re not thinking about saving for your retirement yet, we highly recommend getting started – even putting a little bit away each month can have a big impact on your overall pension pot later in life. 

Pension performance

Here’s where to learn more about starting a pension, and pensions in general…

As a spoiler, check out PensionBee¹, it’s easy to use, low cost, and have a great record of growing pensions over time – you’ll also get £50 added to your pension for free with Nuts About Money.

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