Rising care costs mean people could need £470,000 retirement pot

PLSA’s Retirement Living Standards and average care cost

clock • 2 min read

Retirees will need £470,000 saved if they want to have a comfortable retirement and sufficient funds to cover care costs, which have risen due to inflation, according to analysis from Quilter.

The Pensions and Lifetime Savings Association's Retirement Living Standards definition of a comfortable retirement is £360,000 for a single person, including the full state pension and lasting from ages 65 to 81. PLSA update the standard on a regular basis and its latest research to update them was in 2021 and included the impact of Covid-19 on retirement expectations. However, the current figures do not take into account the current steep rise in inflation. Quilter used this figure along with care home fee averages from LaingBuisson, a healthcare market intelligence business, adapted...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

The conversation that has to change with the 100-year life

The conversation that has to change with the 100-year life

'Advisers need to continue to challenge the cliff-edge narrative directly with clients'

Graeme Bowden
clock 24 September 2026 • 4 min read
Client confidence boost from advice review in retirement fades after six months

Client confidence boost from advice review in retirement fades after six months

Widespread uncertainty about how much can be sustainably spent in retirement

Laura Miller
clock 16 September 2026 • 3 min read
Defensive income before retirement: A four layered framework

Defensive income before retirement: A four layered framework

Entering decumulation can be an unsettling time for clients

Joe Simpson
clock 10 August 2026 • 4 min read