Holidays are ‘essential to a good retirement’

When you think about saving for retirement, you probably focus on basics such as bills, groceries and staying warm in winter.

But retirement should be much more than barely being able to make ends meet.

That’s why Pensions UK has added holidays to its retirement standards, which help people work out how much they’ll need in their pension to enjoy their desired lifestyle.

These are:

• Minimum - covers the essentials and a little fun (£13,400 for one person - £15,800 in London)
• Moderate - more financial security and flexibility (£31,700 for one person - £33,000 in London)
• Comfortable - more financial freedom and the ability to buy luxuries (£43,900 for one person - £45,700 in London)

Under the new and updated standards, a person on the minimum standard would be able to enjoy a week-long holiday in the UK.

If you’re on the moderate standard, you could afford a two-week three-star all-inclusive break in the Mediterranean and a long weekend break in the UK off-peak.

A person in the comfortable bracket could potentially afford a two-week four-star Mediterranean holiday and three UK long weekends.

“Retirement isn’t about scrimping or splurging,” said Cali Sullivan of Pensions UK.

“It’s about living with dignity and keeping the lifestyle you’ve worked hard for.”

What do you want your retirement to look like?

Many of us regard holidays as an essential part of our lives.

They’re a chance to relax, recharge our batteries, enjoy new experiences and make precious memories.

And that’s unlikely to change in later life, so Pensions UK changes to its retirement standards make perfect sense.

However, Ms Sullivan noted that many people are facing “tough choices due to rising costs, both before and during retirement”.

As a result, she’s urging people to “take stock” of their situation and “think about what you want your retirement to look like”.

“By taking time now to understand your savings, making the most of employer contributions, and planning for the lifestyle you want, you can give yourself the best chance of enjoying the kind of retirement that suits you, complete with the trips, treats and freedom you have worked hard for,” Ms Sullivan added.