Retirement Living Standards

Phossy

Putting aside the validity of the analysis and focussing on the numbers. If you compare these incomes against the overall population's incomes, it looks to me that the bands align to the following net income deciles:

	Single	Household
Minimum	1st	3rd
Moderate	7th	8th
Comfortable	8th	9th

This is looking at ONS data from 2024 (the most recent I could find) and UK Property market news from 2025. The data is a little out of date, but directionally it feels solid enough to me. I'm sure if I've misinterpreted it, others will point it out.

What this says to me is that these numbers are very skewed to the more wealthy and that the majority of folks sit between minimum and moderate. Bear in mind that the working population are much more likely to be paying a mortgage out of these incomes and supporting a family. This is definitely top end biased and is driving a a very specific narrative that I don't think is particularly helpful.

westv

Was the Which? survey for this ever updated? The last one a few years ago??

Phossy

Not that I am aware of. I kept an eye for a while, but it seems that this is the one everyone gets behind now (press, media YouTubers etc). Quilter offer a different perspective - it's a little harder to follow.

poseidon1

Spare a thought for the rising number of pensioners who are renters going into retirement.

Currently 6% of retirees but thought to rise steeply to 17% of that cohort by 2040.

https://www.mortgagestrategy.co.uk/news/more-retirees-now-renting-says-government-survey/

Typically they are likely renting by necessity rather than choice and this will be aggravated by low earnings pre retirement and miserable private pension provision in retirement. Pensioners who rent, have a particularly bleak outlook in retirement which these living standard surveys simply do not address.

michaels

https://forums.moneysavingexpert.com/discussion/comment/82021539#Comment_82021539

Thanks for doing this, you might want to check the equivalisation of the household data but I think the standard unit is a 2 adult household.

This is why I should avoid reading this survey as it always raises my blood pressure. Basically it seems that people 'need' a higher standard of living in retirement than they were ever able to afford while working. Bonkers if you ask me.

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/82021582#Comment_82021582

This may be even more of a problem in the years to come, as a pensioner couple - both on the full single tier pension - may not qualify for means tested benefits such as housing benefit. And, even if they do, HB would probably be capped at the single bedroom flat/house rate.

Part of the rationale behind the new single tier pension was to take people out of means tested benefits, which is why current workers are encouraged to better themselves in retirement by saving into an occupational or private pension. Unfortunately, the penny has yet to drop with many people......

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82021643#Comment_82021643

Have to agree that successive generations of workers just do not get it with regard to pension provision.

Despite the 'soft' compulsion aspect of auto enrolment , significantly higher percentage of the over 50s opt out compared to younger age groups. This coupled with a dearth of affordable housing must inevitably lead to ever increasing levels of pensioner poverty, where even a basic retirement living standard begins to look aspirational -

https://www.independentage.org/news-media/press-releases/pensioner-poverty-could-almost-double-next-15-years-new-research

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82021582#Comment_82021582

Typically they are likely renting by necessity rather than choice and this will be aggravated by low earnings pre retirement and miserable private pension provision in retirement. Pensioners who rent, have a particularly bleak outlook in retirement which these living standard surveys simply do not address

Another cohort are those renting due to divorce ( the half that did not keep the house). However the two ( men) I know doing that, had reasonably good jobs and have reasonably good pension provision. Still it is a big enough chunk to pay out every month all the same.

Even the figures for someone rent free and mortgage free, do not really reflect housing costs. They say <£1000 a year for home improvements/maintenance. If you think about the cost of a new kitchen or bathroom, new flooring, decorators, plumbers/new boilers/heat pumps, replacement windows/doors, general maintenance etc , a £1000 a year is not going to go very far.

Albermarle

Pretty much that was my thoughts looking at it. The top end figures are more aspirational than reality for the large majority, and that probably the median average is probably somwhere between the Minimum and the Moderate.

mrklaw

https://forums.moneysavingexpert.com/discussion/comment/82021539#Comment_82021539

thats interesting - if you look at the personas used for the data they tilt lower than that - one or two 75th percentile income people but most are median earners or lower.