How much do I need to retire comfortably in the UK?

Full answer

The Pensions and Lifetime Savings Association (PLSA) Retirement Living Standards set out three benchmarks for annual retirement spending. For a single person: minimum (essentials only) around £14,400, moderate around £31,300, and comfortable around £43,900. For a couple the figures are higher: roughly £22,400 minimum, £43,100 moderate and £60,600 comfortable. To work out the pension pot needed, subtract the State Pension you expect — the full new State Pension for 2026/27 is about £12,548 a year per person — from your target income, then size a pot to fund the rest. A common rule of thumb is the 4% rule: withdraw 4% of your pot in the first year and adjust for inflation thereafter, which historically lasts around 30 years. Worked example: a single person targeting a comfortable £43,900 who receives the full £12,548 State Pension needs their pension to generate £31,352 a year. Dividing by 4% (£31,352 / 0.04) gives a required pot of about £784,000. A more modest moderate lifestyle of £31,300 would need roughly (£31,300 − £12,548) / 0.04 = £469,000. Couples benefit from two State Pensions, sharing the income need across two allowances and reducing the pot each person requires. These are guides, not guarantees — annuity rates, investment returns, inflation, tax on drawdown above the Personal Allowance, and how long you live all matter. Check your forecast at gov.uk/check-state-pension and use the Pension and Pension Drawdown calculators to plan your target.

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More answers

• How much do I need to retire in the UK?
• How much is the State Pension in 2026/27?