The recent rise in living costs means many people will now have to save a lot more to ensure they have a comfortable old age.

The Pensions and Lifetime Savings Association (PLSA) estimates pensioners now need a minimum income of £12,800 to cover basics in retirement – up 18% in the past year.

Those wanting more than just the basics should be targeting an income of £23,300 a year to enjoy a ‘moderate’ standard of living, with £37,300 (or £54,500 for a couple) for a ‘comfortable’ retirement, according to the PLSA. To generate this kind of income in retirement, a couple sharing costs would need to save around £328,000, on top of two full state pensions.

It isn’t just higher bills that might derail your retirement plans. Changes to the State pension age (SPA) could mean having to save more to make up shortfalls or work for longer.

The SPA of 66 is due to rise to 67 by 2028 and to 68 by 2046. Recent reports suggested the government was considering bringing forward that latter increase to 2035, potentially affecting millions born in the 1970s. The next pension age review is due in May, but falling life expectancy figures may have put that change on hold for now.

Saving sufficient sums can seem like an uphill task – particularly if the goalposts keep moving. But reviewing plans regularly and building in some flexibility is increasingly important. Identifying potential shortfalls at an earlier stage means savers are in a better position to plug any gaps over the longer term and secure a more comfortable retirement.