Three quarters of workers not on track for ‘moderate’ pension income, report suggests

Meanwhile, a comfortable lifestyle in retirement is estimated to cost £45,400 for a single person and £62,700 for a couple. Pensions UK said only 9% of workers were in line to get to that level.

The trade body estimates the level of income after tax needed to have a minimum, moderate or comfortable standard of living as a pensioner each year.

The calculations are developed and maintained independently by the Centre for Research in Social Policy at Loughborough University. They are intended as a guide for those planning their retirement savings.

The minimum standard is calculated to include money for a couple’s weekly groceries, a week’s holiday in the UK, eating out about once a month and some affordable leisure activities about twice a week.

Some 82% of the working population would reach the minimum standard, the report said.

“Far fewer will go beyond that. That is out of step with what people expect for their future. Without action, too many risk facing a cliff-edge drop in income when they stop work,” said Zoe Alexander, from Pensions UK.