Pension payments should be this amount each month to have 'happy retirement'

According to a new study by Legal and General and the Happiness Research Institute, UK need a monthly income of £1,700 for a fulfilling retirement, totalling £20,400 annually.

Yet, the saddening reality exposed by the research is that just a third of today's pensioners reach this income threshold. The findings come as the nation braces for Chancellor upcoming autumn statement, poised to usher in more "painful" austerity measures, which could include revisions to the .

The report, covered by the Express, points out that only 38% of retirees currently enjoy an income above £1,700 per month. Meanwhile, an eyewatering 22% subsist on £1,000 or less, seriously trailing behind the £1,200 minimum the and Lifetime Savings Association deems necessary for the most basic living costs.

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The survey went further, uncovering that a quarter of retirees grapple with financial planning. Budgeting for day-to-day essentials like groceries troubles 20%, while 9% are frequently unable to stretch their finances to cover must-have items.

In a damning indictment to social well-being, one in three confessed that a lack of funds has severely hampered their social engagements, breeding loneliness and adversely affecting their overall quality of life.

This comprehensive inquiry into the circumstances of 3,000 retirees sought to understand their well-being, taking into considerations elements such as social ties, health status, and, importantly, their financial means. A crucial takeaway is the pivotal role of financial stability in retirement satisfaction, emphasising how well-being levels out once monthly incomes exceed £2,000.

Finances, however, are not the only ingredient for a blissful retirement; daily routines, leisure time, and a strong social circle also play significant roles in retiree happiness. Legal and General have issued a warning to the younger crowd looking at retirement around the late 2060s about the potential impact of inflation, pointing out that they might need a yearly income of £77,145 to secure a satisfactory lifestyle in retirement.

They proposed a savings strategy: "The average person along with their employer would need to set aside nearly 10% of their qualifying income every month, from the age of 22 until retirement."

This saving advice assumes a steady career path and arriving at retirement as a homeowner to bypass rental costs post-retirement. However, retirement planners who expect to rent might need to stash away up to 21% of their salary, say the experts.

Meik Wiking, head honcho at the Happiness Research Institute, remarked: "Being without sufficient resources to make ends meet causes worry and stress and a lower quality of life for people in the UK. That is especially the case for people in retirement. The good news is that there are ways we can improve happiness levels by planning and saving for retirement."

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