Experts are warning of the “huge gulf” in retirement savings between single Britons and couples.
Those who are single need to have £187,000 more saved in their pension pot compared to their coupled counterparts to have a moderately comfortable retirement.
Earlier this month, the Pension and Lifetime Savings Association (PLSA) updated its Retirement Living Standards which calculates how much households need to have to saved when they retire.
Single people currently need £187,000 more in their pension pot than those in a couple to achieve a moderately comfortable retirement, based on this updated metric.
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Experts are warning of the ‘huge gulf’ between the amount single people and couples need o have saved for retirement
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In four decades, by the time young people today retire, this gap will have increased into a “huge gulf” of £414,000.
Anyone single looking to bridge this gap will need to save an extra £210 more into their pot a month through their working life, assuming their contributions increase by two per cent annually.
Research conducted as part of interactive investor’s latest Great British Retirement Survey revealed that single people expect a lower income in retirement.
The average amount people expect to have was £18,000 on average, compared to £19,000 for those who are cohabiting and £25,000 for those who are married.
Alice Guy, Head of Pensions and Savings, interactive investor, warned about the “huge gulf” between singles and couples when it comes to retirement prospects.
She explained: “Single people retiring in 40 years will need around £414,000 more than those in a couple to achieve a moderate standard of living in retirement.
“The cost of being single is often underestimated and can be a double whammy, making it harder to save and increasing daily living costs so that people need a bigger pension pot for the same standard of living in retirement.
“The problem is that many of our living costs are fixed and don’t vary much with household size. Running a car or owning a dog costs the same whether you’re a couple or a single person.”
Single Britons are being urged to consider contributing more to existing pension pots
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According to the pension expert, there are ways people can bolster their retirement income by taking action as soon as possible.
These include joining a workplace pension plan and paying more than the minimum contribution, as well as regularly checking pension savings.
Furthermore, Guy recommends people think ahead about their retirement plans and choose to either budget or save accordingly.
Finally, she urged Britons to check their state pension entitlement to see whether they have any gaps in their National Insurance record.