18th October 2019
The pensions industry is being urged to bring in retirement income targets to help savers maintain their quality of life.
The Pensions and Lifetime Savings Association (PLSA) wants living standards to be implemented to give savers realistic goals for retirement income.
Three different retirement income targets have been floated in the standards, which are based on the costs of common goods and services.
For minimum living standards with a little spare income, the bar is set at £10,200 a year for singles or £15,700 for couples.
An annual target of £20,200 is set for individuals and £29,100 for couples who seek more financial security and flexibility.
Around £33,000 a year for singles and £47,500 for couples would be needed for retirees to enjoy a comfortable retirement, the PLSA said.
Guy Opperman, pensions minister, said:
"We have transformed saving for retirement for millions of people and the next challenge is to make it easier for them to engage more with their pensions.
"It's great to see what the PLSA has developed, which has the potential to help savers think about the future and plan for the retirement they want."
We offer retirement planning advice.