Marvin OnumonuSingle pensioners face a financial disadvantage in retirement compared to couples, because they cannot share living costs, research by Just Group has found.
The research found that a single pensioner relying on the full State Pension faces an income shortfall of £2,897 annually to reach the Pension and Lifetime Savings Association’s (PLSA) ‘minimum’ retirement living standard of £14,400.
However, a couple both receiving the full State Pension exceed this minimum standard by £604, reaching £22,400 annually.
Stephen Lowe, group communications director at Just Group, said: “Roses are red – and can help keep you out of the red too!
“The figures reinforce the importance of building up some private pension savings or other
investments while you are working and then using them wisely when you reach retirement.”
Lowe stated that a single 65-year-old would need a pension fund of approximately £50,000 to generate the £2,897 annual income, after tax, to meet the minimum standard.
He further commented on the significance of small pension funds.
Lowe added: “Small pension funds tend to be seen as a problem that many people solve by withdrawing the money the first chance they can.
“For many people those small pension funds will make the difference between not quite having the spending power to reach the minimum retirement living standard or being able to surpass it and enjoy more treats.”
