A life of luxury costs a single person £31,000 a year or £41,000 for a two-person household, the Which? report found.
Someone who could earn that income could afford both the “essential” and “comfortable” standards of living, as well as extended or distant vacations, health club memberships, expensive meals, and a new car every five years.
The “luxury” lifestyle is achievable for anyone who has saved £422,140 towards withdrawal by age 65. To insure that through an annuity would cost £671,000.
Which? calculated that a basic pension would cost £13,000 a year for a single person, so the state pension falls short here. Savers need £5,048 a year of their personal savings to get by, eat and drink at home, housing, transport, bills, insurance and clothing.
This would require £123,365 to buy the income through an annuity, or £77,350 if a retiree chose to withdraw.