The annual budget for a minimum standard for a single person has been calculated at £10,900 - a jump of £700 in the last couple of years.
And the minimum standard for a couple has been put at £16,700 - ahead £1,000 on 2019.
These figures are revealed in the Pensions and Lifetime Savings Association (PLSA) first update of possible retirement spending since they were established two years ago.
Pitched at three different levels - minimum, moderate and comfortable - the retirement living standards are designed to help people picture the lifestyle they want when they retire, and understand the cost.
They describe the cost of three different baskets of goods and services, established by what the public considers realistic and relevant expectations for retirement living.
These baskets comprise household bills, food and drink, transport, holidays and leisure, clothing and social and cultural participation.
Like the Consumer Price Index (CPI) measure of inflation, the retirement living standards are regularly reviewed to ensure they keep up with changes in spending habits as well as changes to prices on the shelves to remain relevant to real-world retirement spending.
Just as the most recent updates to the CPI basket of goods included hand sanitiser and home gym equipment, reflecting changes in buying habits brought about by the pandemic, so too the retirement living standards reflect changing attitudes towards retirement lifestyles post Covid-19.
Much of the increase in the minimum retirement living standard has been driven by the rising cost of transport.
The minimum basket also now includes an increase in the budget for hairdressing, from £15 to £25 for women and from £8 to £10 for men, and the inclusion of a Netflix subscription, adding around £1.38 each week.
The annual budget for the moderate retirement living standard has risen since 2019 by £600 to £20,800 for a single person and by £1,500 to £30,600 for two.
The eating-out budget, which rose from £75 per person per month to £100 per person per month, drove much of the increase for the moderate standard.
The annual budget needed for a comfortable retirement living standard has increased since 2019 by £600 to £33,600 for one person and £2,200 to £49,700 for a couple.
Inflation across leisure goods and services have made a significant contribution to the rise, adding £375 a year for one person and £623 for two.
Nigel Peaple, of the PLSA, said:
"It is important that the retirement living standards remain relevant by reflecting real-world price changes and real-world expectations about lifestyles in retirement. We hope the updated standards will encourage people to think about whether they are saving enough for the retirement lifestyle they want and, in particular, whether they are making the most of the employer contributions on offer in their workplace pension.
"The lockdowns caused by the pandemic have given many workers a foretaste of being retired and made people think about the activities and experiences they truly value.“
Based on tax legislation at the time of publication. Please be aware that there will have been changes since this was published. Speak to your adviser for the most up to date information.
