How we calculated these costs
£9,280 - Basic living costs for a single retired person per year
In the research ‘A Minimum Income Standard for the UK in 2012’, conducted by Loughborough University for the Joseph Rowntree Foundation (JRF),
pensioners were asked what they felt was needed for a minimum acceptable standard of living in retirement. The figure here, therefore, is the
cost of what were considered to be life’s essentials – food, the bills and somewhere to live – and some limited social activities.
Things considered as essentials included in the cost were a mobile phone, microwave, TV and washing machine. Non-essentials, excluded from the
cost, include a dishwasher, tumble dryer, Sky TV and a computer.
Remember that your idea of what is essential for an acceptable standard of living may differ from these basics.
What’s included in the basic pensioner budget of £9,280 per year:
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Where you live
– The figure assumes you are a homeowner who has paid off your mortgage, and includes home maintenance and council tax.
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Home maintenance
- £1,000 is about the average spent by a single pensioner for maintenance, repairs and decoration of their own home a year
(source: the government’s ‘Living Costs and Food Survey’ of household spending).
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Holidays - £243 allows for the cost of a five-day coach break in the UK.
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Eating out - £344 assumes £20 a month for meals out, and a takeaway pizza once a week.
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Entertainment - £315 allows for one cinema trip a week, but no other entertainment costs.
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Hobbies and fitness
- £315 allows for one activity a week such as swimming. The basic budget does not allow for more costly hobbies or club membership.
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Habits
- £182 allows for a cheap bottle of supermarket wine once a week, but no tobacco.
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Transport
- £704 assumes use of a free bus pass and the occasional taxi, but does not allow for a car.
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Gifts
- £266 is allowed for giving Christmas and birthday presents to friends and family.
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Healthcare
- The budget allows enough for basic medicines and glasses, dental check-ups and one filling a year.
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Extra treats
– The basic budget allows you to live adequately, but does not allow for extra treats or impulse buys.
Source: You can read more about the ‘A Minimum Income Standard for the UK in 2012’ research at
www.jrf.org.uk/publications/MIS-2012