Only 23% of UK workers can meet moderate retirement needs

A significant majority of UK workers are not saving enough to maintain a moderate or comfortable standard of living in retirement, according to new industry figures that warn of a potential "cliff edge" drop in income when they stop work. The updated Retirement Living Standards, published by industry body Pensions UK, show that rising everyday costs have increased the income required across all levels.

The benchmarks, independently calculated by the Centre for Research in Social Policy at Loughborough University, outline three annual income targets. A minimum lifestyle, covering essentials and some affordable leisure, costs £13,900 for a single person and £22,500 for a couple. A moderate lifestyle requires £32,700 for one person and £45,400 for two. A comfortable retirement, allowing for more social activities, hobbies, and holidays, is set at £45,400 for a single person and £62,700 for a couple. The figures assume receipt of the full new State Pension and exclude housing costs.

Pensions UK estimates that while 82 percent of the working population are on track to achieve at least the minimum standard, only 23 percent are saving enough for a moderate lifestyle. Just 9 percent are...