How much does it cost to secure a decent income in retirement in Britain today? This uses the latest numbers as at January 2023

1. Securing the PLSA’s
Retirement Living Standards

2. Securing the PLSA’s
Retirement Living Standards
I have created this brief document to provide some examples of how much a lifetime annuity could cost
(coupled with the State Pension) in order to achieve the three PLSA Retirement Living Standards, as published
in January 2023.
The annuity figures shown within this document were completed on the 14th January 2023. They are based on
a 66 year old, with a PE postcode, on a single life basis (to match the single life Retirement Living Standards
used) and include a 5 year guarantee period.
I’ve produced two pages per Retirement Living Standard. The first page shows receipt of the full State Pension,
the second shows 2/3rds of the full State Pension entitlement.
I have created this document as an individual and therefore accept responsibility (and apologise) for any
oversights!
Thank you
Mark Ormston

3. £12,800
Securing the Minimum Retirement Living Standard -
Full State Pension
£32,000
Level
Fund value required
for £2,200 in yearly
annuity income
Full state pension Annuity income
£42,750
3% increasing
£49,250
RPI

4. £12,800
Securing the Minimum Retirement Living Standard -
2/3rd of the State Pension
£80,500
Level
Fund value required
for £5,734 in yearly
annuity income
Full state pension Annuity income
£108,500
3% increasing
£125,000
RPI

5. Securing the Moderate Retirement Living Standard -
Full State Pension
£173,500
Level
Fund value required
for £12,700 in yearly
annuity income
Full state pension Annuity income
£238,500
3% increasing
£277,750
RPI
£23,300

6. Securing the Moderate Retirement Living Standard -
2/3rd of the State Pension
£222,750
Level
Fund value required
for £16,234 in yearly
annuity income
Full state pension Annuity income
£307,000
3% increasing
£355,000
RPI
£23,300

7. Securing the Comfortable Retirement Living Standard -
Full State Pension
£370,500
Level
Fund value required
for £26,700 in yearly
annuity income
Full state pension Annuity income
£503,000
3% increasing
£581,500
RPI
£37,300

8. Securing the Comfortable Retirement Living Standard -
2/3rd of the State Pension
£410,000
Level
Fund value required
for £30,234 in yearly
annuity income
Full state pension Annuity income
£553,000
3% increasing
£638,000
RPI
£37,300

9. Securing the PLSA’s
Retirement Living Standards
I hope this document has been useful. As stated at the beginning, this document has been created just to
provide some examples. Whenever a lifetime annuity purchase is being considered, it is important that a
personalised annuity quotation is obtained. Annuity rates are based on various factors such as - location,
personal health and lifestyle information and market conditions.
I wish to thank the PLSA for all their work in producing and maintaining their Retirement Living Standards which
are of great support to members, consumers and the pensions industry.
If anyone would like further information about this document or would like to contact me to discuss anything
further, please feel free to do so, my email is - mark.ormston@retirementline.co.uk
Thank you
Mark Ormston
January 2023