The Pensions and Lifetime Savings Association (PLSA) has today published its annual Retirement Living Standards report which shows that the cost of the minimum retirement lifestyle has decreased from the previous year. 

Responding to the findings, Sue Doughty, Partner at Aptia, said: ‘At first glance these figures look positive, and we should all welcome the fact that the cost of living in retirement is no longer rising rapidly. But dig a little deeper and I’m not sure the news is quite so positive for women who are planning retirement. 

‘The PLSA estimates that a single person living alone on the full state pension would need a pension fund worth between £330,000-£490,000 to buy an annuity if they are to achieve a moderate standard of living. 

‘We know that when it comes to getting older, more women than men live alone - 36% in 2021 compared with 23% for men. When you combine this with Aptia data which shows that on average, women only receive half the pension of men, then we can see how they are at a disadvantage. 

‘What can the pensions industry do to address this? Research shows that just over a quarter of the population haven’t checked their pension savings over the past year – or indeed at all. We should be using the data we hold as an industry to understand people’s needs and engage with them to make informed choices for the future. 

‘The PLSA’s standards are a valuable benchmark, but only if they are used to help people focus on their retirement options and take control of their pensions at an earlier stage.’