Single people need to have £160,000 more in their pension pots than someone in a couple to ensure a moderate standard of living in retirement, according to analysis by Standard Life.

A single person would require a £315,000 pension pot, while people living in a couple would need £155,000 each in order to achieve a moderate retirement income, the firm said.

By sharing living costs, couples require only around half the amount of savings, per person, that a single person needs.

The Pensions and Lifetime Savings Association (PLSA) estimates that a moderate retirement standard of living – enough for a car and a two-week holiday abroad each year – requires an income of £23,300 a year for a single pensioner.

A single person would require £315,000 to achieve this income, taking into account the state pension and an income purchased via an annuity of £14,900 a year (after income tax).

A couple, able to pool resources, would need £155,000 per person.

What’s more, the PLSA estimates to achieve a minimum standard of living in retirement a single person needs a pension pot of £53,000 – that would not be enough to run a car, but would cover a one-week holiday in the UK.

To achieve that same minimum standard of living, Standard Life estimates that a couple would have enough with two state pensions – and so would require no pension pot at all.

At the higher-income end of the scale, to achieve a ‘comfortable’ lifestyle in retirement, with three weeks abroad each year and ample funds for home refurbishments, clothing and other creature comforts, a single person would need £675,000 in the pension pot – £257,000 more than individuals in a couple, who would require £418,000 each.

Standard Life managing director for retail direct, Dean Butler, said: “While couples can pool their finances for retirement, single people need to support themselves independently.

"As our analysis shows, single pensioners need to amass a bigger pension pot to achieve the same standard of living as pensioner couples.”

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