Newsletter: June 2025

To paraphrase a recent BBC article, a recent major report has determined the amount of money needed to meet a basic standard of living in retirement has fallen.

But those people wanting a better retirement will need to have a higher income than ever before.

It is generally accepted there are three levels of retirement a pensioner can have, these are described as, minimum, moderate, or comfortable standard of living.

Lower domestic gas and electricity bills, compared with those previously, are the main reason day-to-day living costs are lower than a year ago for those wanting a basic (minimum) retirement.

However, for those wanting an even better standard of living, the costs have gone up.

Retirement lifestyles

The minimum standard is calculated to include money for a weekly grocery shop, a week's holiday in the UK, eating out about once a month and occasional, affordable leisure activities about twice a week.

The report concluded the cost of a minimum retirement standard of living standard for a one-person household has decreased by £1,000 a year to £13,400 and for a couple it’s down to £21,600 from £22,400 last year.  The current state pension payable to an individual is £11,973 per year, so a couple could receive almost £24,000 a year in state pensions alone.

For a moderate lifestyle, a single person would need £31,700, which is around £400 more than last year, while a couple would need £43,900, which is up by £800 on last year’s figure.  This level includes money for running a small second-hand car, a week holidaying in Europe and a long weekend break in the UK.

To achieve a comfortable retirement, which includes luxuries such as regular beauty treatments, maybe some theatre trips and two weeks' holiday a year sunning yourself in Europe, a single person would need £43,900, and a couple would need £60,600 - a £1,600 increase from £59,000 last year.

None of the categories include mortgage costs as pensioners have typically repaid their mortgages.

For many retirees, it’s about maintaining the life they already have, not living more extravagantly or cutting back.  We're not just seeing changes in living costs, we're seeing changes in how retirees live - working part-time, exercising, looking after elderly relatives or travelling more.  We know retirement isn't a one-size-fits-all experience.  Retirees can share costs, often with a partner, and that can make a huge difference to affordability in later life but is imperative to review your pension arrangements to ensure your plans can be achieved.

Do your homework

Planning how you will spend your retirement years is often exciting but working out how long your money will last can be overwhelming.  We are here to help!

Once you have an idea of what you want, you can then start to put a figure on what that might cost, and then see if what you've got in your pension will get you to where you need to be.

We at Symphony can help you structure your retirement plan and show how your current savings will help achieve your goals.