Lower energy costs make retirement less expensive
Summary
Lower energy costs have reduced the amount of money needed for a basic retirement lifestyle, according to a report by the Pensions and Lifetime Savings Association. However, people aiming for a more comfortable retirement now need more income than before. The report provides estimates for different retirement living standards, which do not include housing costs.Key Facts
- Lower domestic gas and electricity prices have made basic retirement living cheaper.
- A single person now needs £13,400 a year for a basic retirement, down by £1,000.
- A two-person household requires £21,600 annually, decreased from £22,400.
- For a moderate lifestyle, a single person needs £31,700, up by £400 from before.
- A moderate lifestyle for two people requires £43,900, increased by £800.
- A comfortable retirement, including luxuries, costs £43,900 for a single person and £60,600 for two people, both higher than previous figures.
- The report’s calculations exclude housing costs, assuming many retirees have paid off mortgages.
- The research shows younger generations are less likely to own homes outright by retirement compared to older people.
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