Will my retirement count as ‘comfortable’?

New research suggests a ‘comfortable’ retirement costs £43,900 a year if you live on your own. Life is a bit cheaper if you have a partner, as shown in the table below, but the number is still daunting. For anyone approaching retirement, two questions spring to mind. What are pensioners spending their money on? And how do your outgoings compare?

Before we dive in, it’s useful to unpack where these numbers have come from.

Every year, the Pensions Lifetime Savings Association (PLSA) estimates how much minimum, moderate and comfortable standards of retirement cost. It does this by asking members of the public to imagine what goods and services different types of pensioners would choose - from the brand of tomato ketchup they would buy to whether they would have a cleaner.

The figures are a useful starting point for thinking about the level of spending you want to aim for in retirement. However, as we detail below, they need some explanation - and they exclude some important potential costs.

• Read: Income needed for a ‘comfortable’ retirement - the basics explained

Social life and culture

This is the biggest area of weekly expenditure identified by the PLSA. It includes social activities like going to the cinema or theatre, as well as a mobile phone contract, broadband access, and a streaming subscription. For ‘comfortable’ retirees, this entails:

• Weekly leisure activities: £54 per a week for up to three activities
• A mobile phone: Samsung Galaxy smartphone costing £31 a month
• An £80 monthly TV and broadband subscription, plus three smart speakers, and a £10-a-month streaming service
• A music streaming subscription for £12 a month

Food and drink

The cost of food is another thing to consider - and it has been rising fast. The food budget of comfortable retirees increased by around 4.5% between 2023 and 2024, ahead of the UK’s overall inflation rate.

The PLSA expects comfortable retirees to opt for the following:

• A food shop at Sainsburys, buying 75% branded goods
• Alcohol: 3 cans of beer and an £11 bottle of wine every week
• Eating out and takeaways: £42 a week for eating out, plus between £21 and £32 for takeaways.
• £106 per household per month to take others out for a meal

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Eligibility to invest in a SIPP and tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.