A retiree couple living comfortably and hosting guests this Christmas could potentially have around £260 to splash out on food, according to calculations by a pensions body.
A pensioner couple with a moderate lifestyle may have around £145 to spend on food for guests, while those on only a minimum income may have around £60 available in their budget to spend.
The calculations were made by the Pensions and Lifetime Savings Association (PLSA), which regularly publishes retirement living standards to give savers an idea of the lifestyle they might be on course for in retirement.
We’ve created festive hampers showing how retirees might allocate their ‘celebration events’ budget at each level, including a special dinner, decorations, and presents
Zoe Alexander, PLSA
Zoe Alexander, director of policy and advocacy at the PLSA, said: “The retirement living standards help people plan for retirement by identifying the lifestyles retirees can expect at three different levels of expenditure – minimum, moderate and comfortable.
“To illustrate these, we’ve created festive hampers showing how retirees might allocate their ‘celebration events’ budget at each level, including a special dinner, decorations, and presents.”
Researchers producing costings for retiree couples assumed that those on a minimum and moderate budget would be hosting four people for dinner, while those on a comfortable budget would have six guests.
For those on a comfortable budget, a couple would have £259.44 to spend, based on a budgeted amount for celebration events, plus a proportion of their regular weekly shopping budget.
Researchers included items such as smoked salmon, trout pate, prawns, cheese and crackers and a matured Christmas pudding for those with a comfortable lifestyle.
They were also allocated a budget of £600 for spending on Christmas gifts, made up of 12 gifts costing £50, including gift wrap and cards, plus an additional £5 for Christmas decorations.
This put the total cost of the Christmas hamper for a comfortably-off retired couple at around £864.
- Minimum, £324
- Moderate, £510
- Comfortable, £864
A retired couple on a moderate budget meanwhile would have around £145.08 for food, allocated from their budget for celebration events, their regular weekly shopping budget – and also taking up some of their usual eating out and takeaway budget.
Researchers allocated items such as a prawn ring, chicken liver pate and a cheese selection to their food budget.
They would also have £360 to spend on gifts, made up of 12 gifts costing £30 each, including gift wrapping and cards, and they would also have an additional £5 to spend on decorations.
This would put the total budget for a couple on a moderate lifestyle at around £510.
A couple on a minimum retirement lifestyle would have £61.45 to spend on food, allocated from a budgeted amount for celebration events and a proportion of their regular weekly shopping budget.
Their food budget included a yule log, mince pies, pigs in blankets and chocolates.
They would have £260 in total to spend on 12 gifts, gift wrap and cards, plus £2.50 for decorations.
This would add up to a hamper worth around £324 in total for a couple on a minimum retirement budget.
All three hampers included some alcoholic and soft drinks.
The retirement living standards are used across the UK pensions and savings industry to help savers to understand what they will need in retirement and how this compares with their projected pensions income.
The minimum retirement living standard is currently estimated as £14,400 a year for a single person and £22,400 for a couple. The minimum standard covers the amounts a pensioner needs to live on but also includes social and cultural participation.
At the moderate retirement living standard level, the annual cost is £31,300 for a single person household and £43,100 for a couple.
The moderate standard provides more financial security and more flexibility.
At the comfortable standard, retirees can expect to have more luxuries such as regular beauty treatments, theatre trips and overseas holidays. At this level, spending is put at £43,100 for a single person and £59,000 for a couple.
The standards are not rigid targets but tools to help you think about your likely spending in retirement
Zoe Alexander, PLSA
Ms Alexander added: “Most people will achieve the minimum standard through the state pension, especially couples who can share costs.
“Those saving into a workplace pension, particularly the 80% of employees on average earnings, are well-positioned to reach the moderate level if they save consistently throughout their working lives. However, life events like career breaks can affect progress, making it important to adjust contributions to stay on track.
“The standards are not rigid targets but tools to help you think about your likely spending in retirement.”
She said people can explore the standards alongside their pension statement and using online pension calculators, to track their progress and estimate whether they are saving enough.
Ms Alexander added: “If you’re over 50, you can also book a free Pension Wise appointment for guidance on accessing your savings.
“Start planning now to achieve the retirement lifestyle you want.”
