Pensions warning what you'll REALLY need for decent old age

THE minimum basic income for retirement has been calculated at £10,900 a year - but how much do you need to really enjoy your golden years?

- HARVEY JONES

New university research now claims to show the exact amount.

As the cost of living crisis bites, pensioners are on the front line. Many live on low fixed incomes, and simply cannot afford higher food and fuel bills.

“Inflation is eroding the value of every single pound they get,” said Victoria Scholar, head of investment at Interactive Investor.

Those still in employment and saving for retirement often have no idea how much they need to live on after they stop working.

The UK Retirement Living Standards survey calculates a single person needs £10,900 a year, while a couple needs £16,700 to hit the minimum retirement living standard in 2021.

That will only fund living above the breadline, but is still notably higher than the new basic State Pension for those who retired after April 2016. Life is even tougher for those on the old basic State Pension which pays £137.60 a week to retirees before April 2016.

That's just £7,155 a year, a shocking £3,745 less than people need to live on.

If you want a better standard of living in your final years, you need to build enough pension and other savings to generate a lot more income.

The research, carried out by Loughborough University for the Pensions and Lifetime Savings Association, found a single person needs £20,800 a year for a moderate retirement living standard, rising to £36,000 for a couple.

Matt Padley, associate director of CRSP who carried out the research, said this income would cover occasional meals out and a Netflix subscription. "These are now crucial for feeling part of the world around you," he adds