- Pensions UK, an industry body, has warned that many people in Britain face a significant drop in income upon retirement, describing it as a financial “cliff edge”.
- The warning accompanies the publication of updated "retirement living standards," developed by Loughborough University, which outline three distinct lifestyle levels: minimum, moderate, and comfortable.
- These standards detail the annual costs for each lifestyle, with a minimum retirement costing £13,900 for a single person and £22,500 for a couple, rising to £45,400 and £62,700 respectively for a comfortable lifestyle.
- Pensions UK estimates that while 82 per cent of the working population may achieve a minimum standard of living in retirement, only 23 per cent are expected to reach a moderate standard, and fewer than one in ten (9 per cent) a comfortable one.
- The body is advocating for increased action to address the retirement savings gap, including encouraging employers to offer matching pension contributions beyond the statutory minimum.
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