Nigel Peaple, director of policy and advocacy at the PLSA, hoped that the new numbers would “encourage people to think about whether they are saving enough for the retirement lifestyle they want and, in particular, whether they are making the most of the employer contributions on offer in their workplace pension”.
Peaple cited the pandemic as a crucial factor in the increased numbers. He said: “With barbers and hairdressers closed during lockdowns and many of us taking scissors to our own hair for the first time, it is little surprise that the research groups agreed the budget for personal grooming should be increased across the three standards.
“The addition of Netflix also gives an insight into what many of us expect to be doing when we finish work”.
The PLSA estimated that around half of single people would be able to achieve a lifestyle somewhere between “minimum” and “moderate”.
Tom Selby, head of retirement policy at AJ Bell, said: “While for many people a total retirement income of between £11,000 and £21,000 per year might be enough to fund their planned lifestyles, a minimum to moderate living standard will inevitably be far below the expectations of others.
“For those aspiring to more, higher levels of voluntary saving above the automatic enrolment minimum of 8% will almost certainly be necessary.
“Higher contributions, particularly in the early years of saving for retirement, can benefit from extra compound growth over the long-term, with an additional boost provided by tax relief and in some cases matched employer contributions.
“Whatever your retirement aspirations, it is worth reviewing how much you save and where you save it. If having a moderate or comfortable standard of living in retirement is a key goal, you might need to think about saving a bit more into your pension if you can afford to”.
Find out more in our guide How much should I save for retirement?