People retiring this year will need a total lifetime income of at least £130,000 in addition to State benefits, as increased longevity means their money has to last longer, according to Prudential.
And those retiring over the next 15 years will need even more money as the proportion of State benefits, as part of pensioner income, declines and longevity continues to increase.
Today’s 65-year-old man can expect to reach 82 while women retiring at 60 can look forward to living until at least 85. However with State benefits accounting for almost half of average pensioner incomes of £12,500 a year, they need around £6,250 from other sources such as private pensions or savings to make up the difference.
That means the average man needs a total lifetime income of £106,250 to last until 82, while the average female needs £156,250 to survive until 85 – an average of about £130,000.