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Savers say £22,500 is ideal retirement income

4th March 2022

Over 55s with defined contribution pension who plan to buy an annuity say £22,500 is the ideal retirement income, according to health insurance company Canada Life.

Its survey of 506 UK adults above 55 found "little difference" between the sexes, with men looking for £22,900 and women £21,500.

The average ideal income of £22,500 equates to a "moderate living standard", according to the Pension and Lifetime Savings Association.

Pension pot sizes seem to change expectations of income, as those with pensions under £200,000 said the average ideal retirement income was £20,000.

For those with pensions over £200,000, the figure is £28,300 - closer to the "comfortable living standard" for retirees.

Nick Flynn, retirement income director at Canada Life, said retirees are "far from splashing the cash".

He added:

"Over 55s are seeking an income of around £22,500, which combines both private savings and the state pension of around £9,339 currently.

"This requires the pension and any other savings to generate an income of around £13,161 a year."

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