Pensioners need to find an extra £4,800 a year to afford a comfortable retirement as inflation ravages living standards, research has found.
The Pensions and Lifetime Savings Association’s Retirement Living Standards report found some retirees will need to accumulate significantly bigger pots on top of their state pension to reach 'moderate' or 'comfortable' retirement living standards.
Two people sharing costs and receiving the full new state pension would need a £328,000 savings pot to retire comfortably, based on current annuity rates, the research said. This is some £30,000 less than was needed in 2021 due to higher annuity rates, but those investing and using drawdown will need significantly bigger pots.