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Typical pensioners need THIS amount a year to pay their expenses

Food, clothes, travel and heating cost a weekly 223 per head - 3.75 percent more than last year and the equivalent of 420 a year or 8 a week. Expenses has fallen in Northern Ireland and the West Midlands and is virtually unchanged in London and the south east, according to a Key Retirement research study of federal government information on home expenditure.

The yearly average for the nation as an entire conceals big regional variations with retired people in Wales requiring 9,990 a year compared to 13,270 in the south east - around 3,280 a year less or 25 percent lower.

The average retired household spends around 14 percent of their cash on fuel and housing - which relates to around 1,630 a year, narrowly ahead of the 13 per cent that goes on food and non-alcoholic drinks, equivalent to around 1,560.

Scott Gallacher, director of financial organizers Rowley Turton, believes an income of 11,620 a year is too low for anything other than a subsistence lifestyle.

He stated: While pensioners may be able to live on that offered they have repaid their home loan and other debts off, 11,620 is not a figure to strive to given that the average revenues in the UK are 26,500 a year.

It’s also extremely concerning that the new flat rate state pension is simply 8,093 a year; as a result, people will require an additional 3,527 a year of net income from other sources such as pensions.

With today’s low annuity rates you would need to accumulate a pension fund of around 116,000 to offer an index linked annuity sufficient to bridge this 3,527 a year gap.

The biggest spending dedication for a lot of pensioners is on recreation and culture which takes up 16 per cent (1,830) of their annual spending plan.

The fundamental expense of being a pensioner underlines the need for extra earnings which is well in excess of the standard state pension, says Dean Mirfin, technical director at Keyretirement.com.

For lots of this much needed increase can be sufficiently supplied from the wealth in their houses. Over-65s own more than 920 billion of property wealth.

The cash that can be created from property quickly overtakes the typical quantity held in private pensions demonstrating how essential it is for house owners to look for independent professional advice on how to use their real estate wealth.