The average pensioner needs nearly £230 a week to live on, almost £60 more than the state pension pays.
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Analysis of government spending data shows that a typical pensioner spends £227.50 – or £11,830 a year – on basics such as food, clothes and utility bills, while leaving some spare cash for entertainment.That’s 35% or £58.90 more than the full basic state pension of £168.60 a week.However, the cost of retirement varies across the UK, according to research produced by equity release adviser Key.The average pensioner in the South East needs £274.40 a week or £14,270 a year, which is 63% more than the state pension. But in the West Midlands, the figure drops to £197.70 a week or £10,280 a year.The two biggest weekly outlays are utility bills and food, which both account for 20% of spending – or £2,370 a year on average.Transport, including the cost of running a car, eats up around 16% of bills, while spending on entertainment costs around 23%.Will Hale, chief executive of Key, said: “With retirees needing 35% more than the full state pension provides, people need to think carefully about how they will bridge this gap.“Workplace and private pensions, as well as savings and investments, can help – but for most people, maintaining a decent standard of living in retirement means maximising all sources of income