Pensioners living alone face a significant financial disadvantage, needing an extra £2,897 annually to reach minimum living standards, new analysis reveals.
Single retirees must pay a premium of thousands of pounds because they cannot share basic living costs with a partner, research by Just Group shows.
The findings highlight how living alone in retirement creates substantial financial challenges, with singles needing to make significantly more personal investments and savings to maintain the same standard of living as couples.
Based on current State Pension rates of £11,502 per year, single pensioners fall short by £2,897 annually of reaching the £14,400 minimum retirement living standard set by the Pensions and Lifetime Savings Association.
In stark contrast, couples where both partners receive full State Pensions not only meet but exceed their £22,400 minimum retirement living standard.
Single pensioners fall short by £2,897 annually
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These couples actually benefit from an additional £604 per year above the minimum threshold.
To bridge this financial gap, a single 65-year-old would need a pension fund of approximately £50,000 to generate the additional £2,897 annual income required after tax.
Meanwhile, couples receiving full State Pensions have already achieved their minimum income standard without requiring additional pension funds.
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Stephen Lowe from Just Group said: "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."
Lowe highlighted the financial benefits of shared living arrangements in retirement.
He 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."
The analysis demonstrates how coupling up and splitting costs can lead to significant financial advantages in retirement, with partnered pensioners able to achieve higher living standards more easily than their single counterparts.
The rise in the British State Pension over time, including the projected 4.1 per cent increase in 2025ChatGPTPension savers beginning to consider their retirement income options can access professional guidance through various channels.
The Government-backed Pension Wise service offers free, impartial and independent guidance to help individuals make informed decisions about their retirement funds.
This support is particularly valuable for single pensioners who need to carefully plan their retirement savings to bridge the gap to minimum living standards.
