But how much will all this cost? New figures have suggested that a typical retired couple will needs around 413,000 pounds to fund 20 years' retirement - that's 400 pounds a week. The average income of a pensioner couple was £487 a week in 2006. But with people living longer and inflation likely to rise over the years, our couple may need even more money to enjoy their retirement.

The estimates for this couple are based on the husband retiring at age 65 and living to age 85. But according to Life Trust Insurance who commissioned a report which included this forecast, it could all cost a lot more. In the event of inflation creeping up just a little more, a retiree living to be 100 will need more like one million pounds!

Not many people's pensions and savings will add up to that sort of money. An average pension fund will produce 1,250 pounds per annum, although many people will be able to add to that figure with other pensions. Pension Credit guarantees a minimum of 189.35 per week, which does not add up to many of those nice pub lunches.

Life Trust spokesman Andy Briscoe said it was great news that people are living longer, healthier lives, ‘but only if they have the finances in place to really enjoy their post-career years'.

It's estimated that one in ten of today's population could hit the century, one in four 55-year olds could reach age 95, and life-expectancy is growing even longer, according to the Centre for Economics and Business Research. Sounds great, but these extended retirement years need funding.

Andy Briscoe warned, “The combination of rising life expectancy and the impact of inflation over time can have huge financial implications, and for the first time we can see the scale of these trends.”

The Centre for Economics and Business Research found that as people get older, their spending habits alter. On first retiring, a pensioner spends most of his income on going out and taking holidays, then on transportation costs, and lastly on soft drinks and food.

The 85-year old still spends on entertainment and leisure, but the largest share of his pot is going on accommodation, energy costs, and lastly on food.

Spending on health is creeping up now too. And at 95 less than 50 pounds goes on outings and entertainment, while housing, and heating and lighting costs amount to more than 100 pounds a week.

Apparently, if you reach the grand old age of 92, that is the time your spending is at its peak.

So rather than the rosy picture of retirement, the truth is that it's too cold in the house to sit around with the papers and you can't afford to eat out.

You've seen the future and it's bleak, so plan ahead and start making provisions for your retirement asap. You'll need everything you can save if you want a worry-free retirement.