New analysis from Standard Life has highlighted the differences that single people face in contrast to couples who can share retirement costs.

This was calculated by using the MoneyHelper annuity tool to uncover the disparities in pension pots to meet the  Pension and Lifetime Savings Association (PLSA)  ‘minimum’, ‘moderate’ and ‘comfortable’ standards of living in retirement gauge.

Singletons need £50k more for a ‘minimum’ existence

Retirees who are single and wish to achieve a ‘minimum’ standard of living, which includes all basic spending with no car and a week’s holiday at a UK destination, would require an annual income of £12,800, according to the PLSA.

On the assumption that a full state pension is £10,600 per year, a before tax income of £2,300 is needed to cover the costs of a ‘minimum’ lifestyle.

Around £53,000 would need to be accumulated to buy an RPI-linked annuity at current rates, which would guarantee an income for life.

The PLSA’s living standards evaluated that a pensioner couple would need an annual  income of £19,900 to reach the same standard of living.

As two full state pensions would cover this amount, no additional savings are necessary the study concluded.

Is a ‘moderate’ standard out of reach for single pensioners?

A ‘moderate’ standard of living allows for the costs of running a car, and the luxury of a foreign holiday for two weeks.

The PLSA estimated that single pensioners would need an income of £23,300 per year to meet these costs.

An annuity of £14,900 a year after tax would be required to meet the ‘moderate’ cost of living once the full state pension has been received.

In order to achieve this, savings of around £315,000 would be necessary.

Whereas, in contrast, pensioner couples would need £34,000 a year, and they could get this if they amassed £310,000 in a joint pension pot.

In effect they would need to save £155,000 each, roughly half the amount needed by a single pensioner.

How much for comfort?

For those who are looking for a ‘comfortable’ life in their golden years, which would include three-week foreign holiday, alongside a full kitchen and bathroom replacement every 10-15 years, plus a £1,500 a year clothing and footwear budget, a single pensioner would need to build up a pension pot of around £675,000.

By comparison, a couple in retirement would need around £418,000 each in their pots, leading to a combined sum of £835,000.

As a result, a single person would need to save £257,000 more to achieve the same comfortable lifestyle as a couple would have to put aside.

Single people face uphill struggle

Dean Butler, the managing director for Retail Direct at Standard Life said: “Whether single by choice or by circumstance, single people have to front a whole host of expenses on their own, from mortgage or rent payments, utility bills and council tax, to broadband, holidays and TV subscriptions, and unfortunately these aren’t automatically half the amount that couples pay. It’s a similar situation when it comes to pension savings too.

“While couples can pool their finances for retirement, single people need to support themselves independently. As our analysis shows, single pensioners need to amass a bigger pension pot to achieve the same standard of living as pensioner couples. It’s therefore particularly important that single people start thinking about their retirement finances as early as possible.”

He added: “Knowing the sort of lifestyle you want in retirement will help you plan, and the PLSA Retirement Living Standards tool outlines the savings target that you might need to get there.”

“Saving into a pension from an early age will give your money as much time as possible to grow and benefit from possible compound investment growth, while boosting your pension contributions is also a great way to build up savings.”