The exact amount pensioners need for a 'comfortable retirement' has been revealed.
The Pensions and Lifetime Savings Association (PLSA) regularly publishes retirement living standards, to give people an idea of the amounts they may potentially need in retirement, whether they are aiming for a minimum standard of living, a comfortable standard of living, or a more luxurious lifestyle in retirement.
In its latest inflation update, the PLSA said the cost of a minimum lifestyle has increased from £10,900 in 2021 to £12,800 in 2022 - or 18% - for a single person and from £16,700 to £19,900 - or 19% - for a couple.
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Rising food and fuel prices have contributed significantly to the increase in the amounts retirees need for a minimum standard of living, the PLSA said.
Based on research by the Centre for Research in Social Policy at Loughborough University, the retirement living standards consider outgoings such as household bills, food and drink, transport, holidays and leisure, clothing and social and cultural participation.
The standards are regularly reviewed to keep up with changes in people's expectations of what retired households need as well as price rises.
The PLSA said the minimum retirement income standards reflect what is needed for people to live with dignity.
What is the minimum amount needed for comfortable retirement?
Minimum - £96 per week to spend on food and £12 on alcohol. No car. A week's holiday and a long weekend in the UK every year. £460 per person annually for clothing and footwear.
Moderate - £127 per week to spend on food and £20 on alcohol. A three-year-old car replaced every 10 years. Two weeks' holiday in Europe and a long weekend in the UK annually. £791 for clothing and footwear per person annually.
Comfortable - £238 per week to spend on food per week and £26 on alcohol. Two cars, replaced every five years. Three weeks' holiday in Europe annually. Up to £1,300 per person for clothing and footwear annually.
A Department for Work and Pensions spokesperson said: "Automatic enrolment has succeeded in transforming pension saving, with more than 10.8 million workers enrolled into a workplace pension to date and an additional £33 billion saved in real terms in 2021 compared to 2012.
"Our ambition for the future of automatic enrolment will enable people to save more and to start saving earlier.
"However, we also recognise current concerns with rising prices and are committed to ensuring people have the support and information they need to make informed choices about their financial futures, with free and impartial guidance available via Pension Wise and Money Helper."
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