A single pensioner would have to accumulate £50,000 in addition to their state pension for a minimum standard of living, Standard Life analysis has found.

Using the MoneyHelper annuity tool, Standard Life compared the pension pots that single pensioners and pensioner couples might need to secure each of the Pension and Lifetime Savings Association’s (PLSA) retirement living standards.

For single retirees who want to achieve a minimum living standard, which includes enough for the basics, one week’s holiday in the UK a year and no car, they would require an annual income of £12,800, according to the PLSA. The retiree would therefore require an income of £2,300 before tax each year, on top of the full state pension of £10,600 a year, to maintain this standard of living.

Overall, they would have need to have amassed around £53,000 in retirement savings at current rates.

The analysis found that pensioner couples would need an income of £19,900 to reach the same standard of living. However, this would be achievable through two full state pensions, meaning that they would not need to have accumulated any additional savings to cover a basic retirement lifestyle.

For a moderate standard of living, which allows for a car and one two-week holiday abroad a year, a single pensioner would need an income of £23,300, meaning that they would need an annuity of £14,900 a year, after taxing account of income tax. Therefore, they would need to save around £315,000.

However, couples would need an annual income of £34,000, which they could get if they amassed £310,000 in their overall joint pension pot.

For a comfortable living standard in retirement, which includes a three-week holiday abroad, a full kitchen and bathroom replacement every 10-15 years and a £1,500 a year clothing and footwear budget, single pensioners would need a pot of around £675,000, whilst couples would need £835,000 between them, or around £418,000 each.

Managing director for retail director at Standard Life, Dean Butler, said: “Whether single by choice or by circumstance, single people have to front a whole host of expenses on their own – from mortgage or rent payments, utility bills and council tax, to broadband, holidays and TV subscriptions – and unfortunately these aren’t automatically half the amount that couples pay. It’s a similar situation when it comes to pension savings too. While couples can pool their finances for retirement, single people need to support themselves independently. As our analysis shows, single pensioners need to amass a bigger pension pot to achieve the same standard of living as pensioner couples.

“It’s therefore particularly important that single people start thinking about their retirement finances as early as possible. It’s also a fact of life that not all relationships last, and there’s a chance couples will divorce – in this scenario, awareness of these figures are a good place to start when thinking about how to approach Pension sharing and the possibility of a single retirement. Knowing the sort of lifestyle you want in retirement will help you plan, and the PLSA retirement living standards tool outlines the savings target that you might need to get there.

“Saving into a pension from an early age will give your money as much time as possible to grow and benefit from possible compound investment growth, while boosting your pension contributions is also a great way to build up savings. Consider making top ups to the amount you regularly pay into your pension if you get a pay rise for example, or make a one-off contribution following a bonus. Clearly, it’s a difficult economic environment at the moment, but your future self will thank you for taking any opportunity to put money away for retirement.”

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