The cost of a comfortable retirement has gone up by nearly a fifth, according to data.
Average spending by retired households has climbed to £23,675 a year, analysis by pension provider, iSIPP shows.
Spending boomed with the end of pandemic restrictions but it has also been driven by rising inflation putting increased pressure on their retirement savings, iSIPP said.
It said that households aged between 65 and 74 were spending 19% more a week than they were in 2021, on average using £455.30 a week or £23,675 a year.
Yet the flat-rate State Pension currently worth £203.85 a week or £10,600.20 a year provides just 44% of the money needed to fund a comfortable retirement, while those relying on the basic State Pension which is worth £156.20 a week or £8,122.40 a year are even worse off, iSIPP said.
Pensioners biggest costs are transport including cars and public transport fares, bills and housing maintenance, food, transport, and recreation.
However, annual spending drops once households hit the age of 75 – average spending a week is £356.30 or £18,527.60 a year. That is however 18% higher than the £302.60 or £15,680 in 2021.
The average annual spending for all households in the UK is nearly £27,500 with those aged between 30 and 49 spending the most at £31,636 a year.
iSIPP managing director, Hrishi Kulkarni, said: “The cost-of-living crisis is pushing up bills for all households and increasing the cost of maintaining a comfortable lifestyle.”
He added: “The pressure can be most acute for retired households who have fewer options to increase their income to keep pace with rising prices and is particularly painful for those households without private retirement savings.”
