A couple drawing two full state pensions still need a private fund of £131,000 to afford a comfortable retirement, experts have warned.
The cash pot is needed to boost a couple’s joint income to £28,000 a year, from the £21,200 provided by the state.
Those wishing to retire in luxury, including foreign holidays and a new car every five years, would need to boost their joint income to £44,000 a year – requiring a private pot of £476,000, analysis found.
Single retirees need even more to achieve a decent standard of living, requiring a pot of £182,400 in addition to the state pension.
Consumer champion Which? questioned 5,000 retired people to discover how much they spend on everything from essentials to foreign holidays.
Jenny Ross, editor of Which? Money, said: “Being aware of how much you’re putting towards retirement is always a good idea, but with the cost-of-living crisis continuing to bite it has unsurprisingly brought it into sharper focus for many savers.
“With people changing jobs more regularly than previous generations, savers would benefit hugely from having all of their pension information, including their state pension, in one place.
“The idea already exists in the form of a pensions dashboard. The Government must make significant progress on delivering the service so savers can see if they’re on track.”
Respondents told Which? about the many changes that come with ending employment.
Phil Hobden, from Kenley, Surrey, said: “I think there is an inevitable anxiety one feels when faced with losing a regular salary, and replacing that salary with a much smaller income from pensions and investments.
“My wife and I are at the start of the slow-go years, and our spending reflects that.”
Eric Simmons, from Leeds, said he felt the benefit of expenditure dropping. He said: “I was driving into work every day, which used a gallon of fuel costing £7.50. We disposed of one car and started to use our bus passes.
“I was buying lunch at work, but eating at home has been cheaper.”