Single people need to accumulate significantly more personal investments and savings in order to maintain the same standard of living in retirement as couples, says retirement specialist Just Group.
Assuming a full State Pension of £11,502 a year, the single person has a shortfall of about £2,897 a year income to achieve the £14,400 ‘minimum’ retirement living standard calculated by the PLSA as a guide to the annual amount people need to spend.
A single 65-year-old would require a pension fund of about £50,000 to secure the £2,897 a year income after tax to take them up to the minimum income standard.
However, a couple who are both receiving full State Pensions will have achieved the ‘minimum’ retirement living standard of £22,400 and have an additional £604 a year income on top.
Stephen Lowe, group communications director at retirement specialist Just Group, said the figures show the financial advantages of coupling up and being able to split the costs, commenting: “Roses are red – and can help keep you out of the red too!
“The figures reinforce the importance of building up some private pension savings or other investments while you are working and then using them wisely when you reach retirement.”
