Cost of retirement soars by £8,000 a year – 5 tips to boost your pension

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The cost of a moderate retirement is climbing, so the more you can do for your retirement now, the better. Here are five tips to help boost your pension pot.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 14 February 2024

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

The cost of retirement is still soaring. The latest data from the Pensions and Lifetime Savings Association (PLSA) is showing the cost of a ‘moderate’ retirement income has gone up by an astonishing £8,000 per year for a single person living outside London.

A ‘moderate’ retirement is classed as being able to afford one overseas holiday a year with space in the budget to run a car and go out to eat. Last year the PLSA had this costing £23,300 a year for a single person and £34,000 for a couple. In just one year it’s leapt to £31,300 and £43,100, respectively.

For people wanting a bit more luxury, the costs for a ‘comfortable’ retirement have also gone up to £43,100 for one and to £59,000 for a two-person household.

There are a few reasons – increased food and energy costs are a big factor, but they also