Britons need £43,100 a year for a comfortable retirement, figures show - however many people do not know if they are on track to get this.
With effective retirement planning, Britons can decide what kind of lifestyle they would like in retirement and how best they can go about getting their.
Fidelity International has launched a retirement calculator to help Britons figure out a ball park figure to the dreaded question 'how much do I need to retire?'
Their retirement calculator will help people decide what kind of lifestyle you'd like in retirement and if they're on track to achieving it.
The anonymous and short quiz and will show individuals what their projected income could look like and if it will fund their ideal retirement.
This calculator uses people's answers to align them to the 'Retirement Living Standards' - minimum, moderate or comfortable - that best suits their ideal lifestyle in retirement.
Research found only 62 per cent of people know where all their pensions are heldPAEarlier this year it was revealed that the annual cost of enjoying a moderate standard of living in retirement has risen by £8,000 in a year.
The Pensions and Lifetime Savings Association (PLSA) put the yearly price of a retirement income deemed "moderate" for a single person at £31,300 for 2023 to 2024 - up from £23,300 a year earlier.
The increase has come due to the rising cost of living - as food inflation and energy bills remain high - and higher expectations about retirement lifestyles.
A "moderate" level of retirement means retirees can afford a monthly meal out and financially help family members with a budget of £1,000.
To have a "minimum" retirement standard, a single person needs to spend an average of £14,400 every year, up an extra £1,600 from £12,800 a year earlier and £22,400 for a couple.
It includes around £95 for a couple’s weekly groceries, a week’s holiday in the UK, eating out about once a month and some affordable leisure activities about twice a week. It does not include budget to run a car.
A couple hoping to attain the "moderate" pension needs to spend £43,100 a year, up from £34,000 in 2022 to 2023. In this category a couple could spend around £100 a week on groceries, £60 a week on eating out, run a small second-hand car, have a week holidaying in Europe and a long weekend break in the UK.
Those looking to retire with a "comfortable" living standard, including regular beauty treatments, theatre trips and two weeks' holiday in Europe a year, need to pay £43,100 annually, for a single person (up from £37,300 a year earlier) or £59,000 a year for a couple, an increase from £54,500 12 months prior.
To help the calculator work out how much savings people could have by the time they retire, Britons should try and have all the documents and information ready to share.
Individuals should know much is currently saved across their pension pots. This includes workplace pension(s) and private pension(s), such as a self-invested personal pension.
This does not include any defined benefit pensions (final salary pensions).
Additionally they should know how much to pay into their pension each month.
People including their partner in their retirement plans will be asked how much they both pay into their pensions.
Those only looking at their plans will need to know how much them and their employer pays, as an amount or percentage.
A range of assumptions are used to provide the estimate and so the results may be very different to what people actually receive in retirement.
It should be noted these results should not be solely relied upon for one's retirement planning. It is encouraged people seek financial advice if they need more help.