Retirees need ?11,200 per year

Pensioners need £215 per week, with the average retired household spending 15% of its budget on fuel and housing, 14% on food and non-alcoholic drink and 11% on transport.

Average food bills have increased by £5 on last year while spending on fuel and housing has risen by nearly £200.

Dean Mirfin, group director at Key Retirement, said: “The basic cost of being a pensioner at around £11,200 a year highlights the importance of planning carefully for retirement and getting the best possible advice to ensure a comfortable lifestyle.

“Anyone approaching retirement will need to find other income in order to meet the basic costs and should look at all their assets including savings or pensions, plus the money invested in their home.

“On average customers released nearly £64,800 from their homes last year through equity release; which could, for many, prove life-changing in meeting the costs of retirement.”

There are regional variations in terms of what retirees require, as people living in the North East need 9,630 a year compared to £13,216 for those in the South East.

Mirfin added: “The recent good news on price rises slowing down as inflation falls, as well as cuts to major expenses such as gas and electricity bills and the fall in petrol and diesel costs, should mean a drop in the cost of being a pensioner this year.

“But it is crucial that pensioners and those in the run-up to retirement focus on their retirement income as the current basic state pension, and even the new state pension planned for next year, will not cover the basic costs of being retired in any region of the UK.”