Holidays are a "valued and realistic" part of later life, according to a pensions body which sets living standards to help people plan their retirement lifestyle. The guidance aims to show what kind of trips and experiences retirees can afford at different income levels.
Pensions UK's retirement living standards help people use their current lifestyle and cost of living as a guide for future financial needs. The standards are regularly updated and set at three levels: "minimum" covering basic needs with some money for enjoyment, "moderate" providing more security and flexibility, and "comfortable" offering greater financial freedom and luxury spending.
Holiday options across income levels
The minimum standard allows for a week-long UK holiday each year. The moderate standard enables a two-week three-star all-inclusive Mediterranean holiday plus a long weekend off-peak break in the UK. Those on a comfortable lifestyle could afford a fortnight's four-star Mediterranean holiday and three long weekend breaks in the UK.
Cali Sullivan, project lead retirement living standards at Pensions UK, said retirement "isn't about scrimping or splurging". She added: "It's about living with dignity and keeping the lifestyle you've worked hard for."
Research highlights holiday importance
Sullivan explained that research shows holidays are "seen as essential to a good retirement". She said they provide "time to relax, make memories and enjoy new experiences" whilst offering "a vital boost to wellbeing and give people something to look forward to".
For those at the minimum living standard, a week away in the UK fits within budgeted costs. Sullivan highlighted destinations including "the coast of Devon, the hills of Yorkshire, the lochs and glens of Scotland, or the charm of Norfolk or Wales".
Achievable targets for most households
Around three-quarters of households are expected to achieve the minimum standard, according to Sullivan. She said this level is "very achievable for many" thanks to the full state pension and auto-enrolment into workplace pensions. Two-person households are even more likely to reach this level as they can share living and travel costs.
At the moderate standard, Sullivan said "your travel horizons can expand". She described two weeks "soaking up the sun in Tenerife, Majorca, Turkey, Rhodes or Spain, all-inclusive" plus three-night city breaks to UK destinations like Bath, York, Glasgow, Manchester or Cambridge.
Premium retirement travel options
For comfortable retirement incomes, Sullivan said people can "expect more freedom to travel further afield and have a longer trip". Options include a two-week Mediterranean cruise or "a 12-night all-inclusive cruise around the Norwegian Fjords" plus three long weekends in the UK.
Group holidays can help retired people save costs, she noted. Sullivan said: "Whether it's with a partner, a friend, or even a group trip, sharing costs, and experiences, can go a long way."
Annual income requirements
The annual incomes needed for each standard vary significantly between single people and couples. For minimum living standards, single people need £13,400 whilst couples require £21,600. Moderate standards require £31,700 for singles and £43,900 for couples. Comfortable retirement needs £43,900 for one person or £60,600 for a couple.
Sullivan advised people to "take stock of your own situation" and consider what retirement should look like. She recommended understanding current savings, maximising employer contributions and planning for the desired lifestyle to "give yourself the best chance of enjoying the kind of retirement that suits you".
(PA) Note: This article has been edited with the help of Artificial Intelligence.
