The state pension is a valuable benefit for millions of people – but on its own, it falls significantly short of funding a typical retiree lifestyle. August 2019 figures from Just Group found that, on average, a single pensioner spends £13,265 annually. But with the full state pension currently paying £8,767.20, it means an average annual shortfall of £4,498 that needs to be plugged. Retired couples must find an extra £8,710 a year.
Just Group calculates that – if you are a single pensioner, have no other retirement savings and lived the average retiree lifestyle – in a calendar year, you would run out of money by 28 August and three days later for couples. This would leave a shortfall of over four months.
If you are a client and would like to discuss your pension options further please call Gail Green on 01522 815100.