Answers · UK 2025/26

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

As a rule of thumb: aim for a pot that generates 50–70% of your pre-retirement income. The Pensions and Lifetime Savings Association (PLSA) Retirement Living Standards suggest £14,400/year for a minimum standard, £31,300 for moderate, and £43,100 for comfortable (2024 figures, single person). The State Pension covers £11,502/year of this.

Last updated: 28 May 2026Last reviewed: 28 May 2026How we verify

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Retirement Living Standards (PLSA, 2024, single person): Minimum £14,400 — covers needs, some leisure; Moderate £31,300 — some luxuries, a car, one UK holiday; Comfortable £43,100 — more financial freedom, two weeks abroad, replacement car. Couple figures are lower per person due to shared costs. Pot size needed: using a 3.5% drawdown rate (sustainable for ~30 years), you need roughly 28× your required annual income from savings. To fund the gap between the State Pension (£11,502) and a moderate retirement (£31,300) you need to generate £19,798/year from savings → at 3.5% drawdown you need £565,657 in your pot. Common rules of thumb: take the age at which you start saving, halve it, and save that percentage of your gross salary every year. Start at 25: save 12.5%. Common employer match of 3%+ free money you should always claim. ISA and SIPP (self-invested personal pension) are the main vehicles.