THE PLSA'S Retirement Living Standards' Christmas Hamper
24 December 2024, Press Release
These standards are based on independent research and extensive consultations with the British public.
To make these standards more relatable and encourage engagement with retirement savings, we’ve created examples of Christmas hampers reflecting the three Retirement Living Standards. Each hamper includes items for the main dinner, decorations, and gifts.
Within the spreadsheet, the items are labelled with the supermarket they were sourced from, making it easier for designers to find them for images. The supermarket names can be adjusted depending on whether you need branded or non-branded options for print. However, the total cost for each level should remain consistent.
Methodology
The Christmas dinner budgets illustrate how someone might allocate the “celebration events” portion of the Retirement Living Standards budget. Assuming Christmas is the main celebration of the year, the budgets below incorporate this allocation alongside staples from the weekly shop, decorations, presents, and, for the Moderate standard, a portion of the eating out and takeaway budget.
The Minimum and Moderate budgets are based on hosting four people for dinner, while the Comfortable budget assumes a total of six guests. These costings are for retiree couples.
| Minimum | Moderate | Comfortable |
Food budget
| £61.45
Included within a budgeted amount for celebration events and a proportion of their regular weekly shopping budget.
| £145.08
Included within a budgeted amount for celebration events and a proportion of their regular weekly shopping budget, eating out budget and takeaway budget. | £259.44
Included within a budgeted amount for celebration events and a proportion of their regular weekly shopping budget. |
Christmas decorations
| Christmas decorations (£50 for an artificial 4ft Xmas tree and decorations (baubles, lights etc.), replaced every 20 years).
Cost: £2.50 | Christmas decorations (£50 for an artificial 4ft Xmas tree and decorations (baubles, lights etc.), replaced every 10 years).
Cost: £5 | Christmas decorations (£50 for an artificial 4ft Xmas tree and decorations (baubles, lights etc.), replaced every 10 years).
Cost: £5 |
Christmas presents
| Christmas presents spend (12 gifts of £20, plus £20 for all gift wrap and cards).
Cost: £260 | Christmas presents spend (12 gifts of £30, including gift wrap and cards).
Cost: £360 | Christmas presents spend (12 gifts of £50, including gift wrap and cards).
Cost: £600 |
Total
| £324
| £510
| £864
|
Zoe Alexander, Director of Policy & Advocacy at the PLSA, said: “The Retirement Living Standards help people plan for retirement by identifying the lifestyles retirees can expect at three different levels of expenditure - Minimum, Moderate and Comfortable. To illustrate these, we’ve created festive hampers showing how retirees might allocate their “celebration events” budget at each level, including a special dinner, decorations, and presents.
“Most people will achieve the Minimum standard through the State Pension, especially couples who can share costs. Those saving into a workplace pension, particularly the 80% of employees on average earnings, are well-positioned to reach the Moderate level if they save consistently throughout their working lives. However, life events like career breaks can affect progress, making it important to adjust contributions to stay on track.
“The Standards are not rigid targets but tools to help you think about your likely spending in retirement. To take charge of your future, explore the Retirement Living Standards website to understand your spending needs, check your latest pension statement to track your progress, and use online pension calculators to see if you’re saving enough. If you’re over 50, you can also book a free Pension Wise appointment for guidance on accessing your savings.
“Start planning now to achieve the retirement lifestyle you want.”
Retirement Living Standards: The details
The cost of a Minimum Retirement Living Standard is £14,400 for a single person and £22,400 for a couple. The Minimum Retirement Living Standard is the same as the Joseph Rowntree Foundation’s Minimum Income Standard (MIS) and reflects what members of the public think is required to cover a retiree’s needs, not just to survive but to live with dignity – including social and cultural participation.
At the Moderate Retirement Living Standard level, costs are £31,300 for a single person household and £43,100 for a couple household. The Moderate Retirement Living Standard, in addition to the Minimum lifestyle, provides more financial security and more flexibility.
At the Comfortable Retirement Living Standard, retirees can expect to have more luxuries like regular beauty treatments, theatre trips and two weeks holiday in Europe a year. At this level, the expenditure is £43,100 for a single person and £59,000 for a couple.
The Retirement Living Standards are being used across the pensions and savings industry in the UK, helping savers to understand what they will need in retirement and how this compares to projected pensions income. Through the communications of more than 100 pension schemes and organisations, including some of the largest and best-known brands, the Standards are reaching up to 35 million savers.
Mark Smith, Head of Media Relations
020 7601 1726 | [email protected]
Cali Sullivan, Senior PR Manager
020 7601 1761 | [email protected]