Single pensioners face a markedly higher financial burden in retirement than their coupled counterparts, according to new analysis by Standard Life.
The figures show that a single person must accumulate £225,000 more in pension savings than someone in a couple to achieve a ‘moderate’ standard of living in later life.
The research, based on the Pension and Lifetime Savings Association (PLSA)’s Retirement Living Standards, reveals the cost of living alone extends far beyond rent or bills. Single pensioners must shoulder retirement expenses alone, while couples can pool resources and benefit from shared costs across the board, including travel, household maintenance and utility bills.
MINIMUM
To achieve even the PLSA’s minimum standard of living – which covers basic needs and a modest annual UK holiday but excludes car ownership – a single pensioner would require an annual income of £14,400. With a full new state pension currently standing at £11,973 per year, a single person would still need an annuity providing an additional £2,884 annually, post-tax. At present rates, this would require a pension pot of around £54,500. In contrast, couples with two full state pensions could meet the £22,400 joint income needed for the same standard without relying on any additional private savings.
MODERATE
The financial gap widens considerably at the PLSA’s moderate retirement standard, which allows for a car and a two-week overseas holiday each year. A single pensioner would need £31,300 in annual income, requiring a private annuity to provide £24,010 on top of the state pension. To secure this, they would need to have built up a pension pot of £439,000. A couple, by comparison, would need £43,100 annually. Assuming both receive full state pensions, they would need a combined pot of £428,000 – or £214,000 each. This translates to a £225,000 shortfall for single retirees.
COMFORTABLE
At the most generous end of the scale, the comfortable living standard – which includes longer holidays, home improvements every 10–15 years and a £1,500 clothing and footwear allowance – requires an annual income of £43,100 for couples and £31,300 for individuals. Here, the disparity is stark: while couples must save £398,000 each to secure this level of income, a single pensioner would need £709,000 – a difference of £311,000.
Mike Ambery, retirement savings director at Standard Life, part of Phoenix Group, said the findings highlight an often-overlooked inequality in retirement planning.
“Whether single by choice or by circumstance, solo living comes with a financial price tag,” he said. “While it seems unfair, mortgage, rent, utility bills and holiday costs don’t simply halve for those living alone. The same applies to pension savings. While couples can combine their resources, single retirees need to build up much more to achieve the same lifestyle in retirement.”
Ambery noted the implications go beyond those who are currently single, pointing to the role these figures should play in divorce settlements or in planning for potential changes in living arrangements later in life.
“It’s important to take control of your future financial happiness whether you’re single or in a relationship. Starting early, making regular contributions, and topping up savings where possible can make a real difference,” he added.
