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The Pensions & Lifetime Savings Association (PLSA) has just launched the new Retirement Living Standards to help people picture their future at retirement. The PLSA’s research shows that only 23% of people understand how much they need to save, the Standards aim to help savers understand the challenge and prepare for their future. According to their research, a single person will need £10,000 each year as a minimum, £20,000 for a moderate standard of living and £30,000 to be comfortable. For couples, the equivalent numbers are £15,000, £30,000 and £45,000 each year.
Commenting on the new targets from the PLSA, Jamie Jenkins, head of Global Savings Policy at Standard Life Aberdeen said:
“These new Retirement Living Standards are a welcome addition to the current revolution we’re seeing in pension saving.
“Changes to State Pensions have made it easier for people to understand what they’ll get from the government, while automatic enrolment has ensured that most employees are also saving into a workplace pension. Finally, announced just this week in the Queen’s Speech, legislative action to pave the way for pension dashboards will ensure people can see what they have saved away.
“These new Standards will collectively help people understand exactly what they need to better prepare for the future and help to build greater engagement with life savings.”
If you’re interested in finding out more about how much you need to save for retirement you can use the tools and calculators on our customer website. We’ll help you check if your savings are on track and make sure you have clear goals for the future.
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