The Pensions and Lifetime Savings Association (PLSA) has launched a new ‘tool’ called the ‘Retirement Living Standards’, which aims to empower people to better picture the lifestyle they want when they retire – and understand the cost.  
 
The ‘tool’ provides a clear idea of the income levels pension savers should aim for if they want either a minimum, moderate or comfortable retirement.  
 
The Standards suggest: 

• if you are single, you'll need £10,200 a year as a minimum to live on (couple: £15,700)
• this goes up to £20,200 if you want more financial flexibility (couple: £29,100), or
• you’ll need £33,000 if you want more financial freedom and some luxuries (couple: £47,500)

The Standards are based on independent research with real people conducted by Loughborough University. They describe a basket of goods and services required to reach a living standard – household bills, food and drink, transport, holidays and leisure, clothing and personal, helping others – and establish associated expenditure levels. 

In addition to helping savers understand what their retirement will look like, the PLSA believes the Standards will help the pensions industry by: 

• providing a valuable benchmark for use across scheme communications and tools
• helping schemes to further encourage savers to engage with their pension, and
• enhancing retirement planning amongst members

Check this new tool out here.