The amount needed for a single person to have a moderate retirement has risen to £31,300, according to the Pensions and Lifetime Savings Association (PLSA).
The rising cost of living and an increased importance on socialising following the pandemic had pushed up the income required by £8,000, the PLSA said.
The PLSA uses evidence from focus groups to make the estimates, and they are intended as a guide for those planning their retirement savings.
The calculations are pitched at three different levels – minimum, moderate and comfortable – and are developed and maintained independently by the Centre for Research in Social Policy at Loughborough University.
They estimated that a single person needed £14,400 a year for a minimum lifestyle, and £43,100 a year for a comfortable retirement.
Couples required a joint £22,400 at the minimum level, £43,100 at a moderate level and £59,000 at a comfortable level.
Nigel Peaple, Director for Policy and Advocacy at the PLSA, said:
‘The cost of living has put enormous pressure on household finances over the last year and, as the research shows, this is no different for retirees.’
Internet link: PLSA website