The cost of being a pensioner has been revealed. Retirement living now costs £11,620 annually, up 3.75 per cent on last year.
Since 2015, basic costs - including food, clothes, travel and heating - are up £8 a week - or £420 a year, according to analysis by Key Retirement.
Living costs are up £8 a week
As you might expect, there are regional variations with Welsh pensioners needing £9,990 a year compared to £13,270 for retirees living in the South East.
What pensioners spend it on
The analysis showed the average retired household spends around 14 per cent of their cash on fuel and housing – which equates to around £1,630 a year – narrowly ahead of the 13 per cent that goes on food and non-alcoholic drinks – equivalent to around £1,560.
But the data also shows pensioners are feeling more confident – around 16 per cent of their budget is spent on recreation and culture at around £1,830 a year each.
Boosting income from home
With the state pension coming in at £119.30 per week, this underlines the need for extra income to meet rising retirement costs.
Dean Mirfin at Keyretirement.com, says: "For many this much needed boost can be adequately provided from the wealth in their homes.
"Over-65s own more than £920 billion of property wealth and are earning around £1,000 a month from their homes as house prices rise. The cash that can be generated from property easily outstrips the average amount held in private pensions demonstrating how important it is for homeowners to seek independent expert advice on how to use their housing wealth.
"Low inflation is good news but it is crucial that pensioners and those in the run-up to retirement focus on their future retirement income in order to meet the basic costs. On average customers released over £76,000 from their homes in the first quarter of 2016 through equity release which could, for many, prove life-changing in meeting the costs of retirement."
- Anyone looking to release equity from their home can speak to Yours Retirement Services which has partnered with Key Retirement by calling 0808 156 9010 or by clicking here.