The average UK pensioner needs £10,387 a year to cover the basic necessities, according to research from Key Retirement Solutions.
But the cost varies widely with over-65s in the southeast of England spending at least £3,100 a year more than pensioners in Wales.
In light of the figures Key is promoting its equity release products as a way for pensioners to unlock value from their homes to ensure they can meet spending bills.
Research shows the average over-65 household spends £10,387 a year with the biggest cost coming from their annual average food bill of £1,563, narrowly ahead of spending on housing and fuel at £1,485.
The pensioners with the lowest average annual bill live in Wales, where it costs £8,829 a year compared to the south east of England where the over-65s need an average £11,945. London is the second most expensive at £11,322 followed by the east of England at £11,144.
Dean Mirfin, group director at Key, said the basic cost of being a pensioner would come at a “considerable shock” to many and would force them to make harsh spending decisions.
“Those approaching retirement must be made aware of the real need to plan carefully, as the annual income does not cover much in the way of luxuries or leave scope for any emergencies.”
Current basic state pension and even the new planned flat rate state pension would not cover the basic costs of being a pensioner in any region of the UK and would leave annual shortfalls of thousands of pounds, he said.
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