For the minimum category, a single pensioner will need £10,200 a year, whereas a couple will need £15,700. This covers all one’s retirement needs, with some cash left over to use for pleasure.
The moderate tier, which provides more financial flexibility and security, needs £20,200 for a single retiree and £29,100 for a couple.
Finally, the comfortable category requires £33,000 and £47,500 for a single pensioner and a couple respectively. This amount provides even more financial freedom with more room for luxuries.
Naturally, these tiers won’t apply directly to everyone, but can be used as a rule of thumb when looking to the future and considering one’s retirement.
James Norton, head of financial planners at Vanguard, spoke to Express.co.uk about how best to go about planning for retirement. He said: “The first step in identifying how much you need to retire, is to consider your goals in retirement.