Retirees wanting a 'comfortable' retirement and enough money for care would need to build up an estimated £470,000 in retirement wealth, new analysis from Quilter has revealed.

Quilter explained that, using the Pension and Lifetime Saving Association’s (PLSA) Retirement Living Standards definition of what constitutes a comfortable retirement, a single person would need to build up a pot of around £360,000, in addition to the state pension, to cover a comfortable retirement lasting from 65 to 81.

However, the average length of care people require is a little over two years according to Bupa, and if that is factored into the cost of a comfortable retirement it increases to nearly £440,000 for residential care and £470,000 if requiring nursing care.

The analysis also detailed that, due to the cost-of-living crisis, prices have pushed the costs of care up and projections show that someone hoping to self-fund a comfortable retirement as well as two years of nursing care needs an extra £85,000 compared to five years ago.

Quilter tax and financial planning expert, Shaun Moore, commented: “The current system of social care funding is widely acknowledged as being unsustainable, yet the social care can was once again kicked beyond the next general election in Hunt’s recent Autumn Statement.

"This causes huge uncertainty and will cost thousands for people entering the care system prior to 2025 and perhaps beyond that.

“Whatever solution is eventually in place, people will still need to think carefully about saving for their own care, as whatever is on offer is likely to be the bare minimum.

"Personal provision for social care will make up the vast majority of how someone pays for the care they need, and it certainly won’t be a small amount so people should think carefully about not only saving for retirement but also for social care.”

Share Story: