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If you’re hoping to enjoy a comfortable retirement when you stop working, check your pension savings now, as the amount of money you’re likely to need may come as a shock.
A single person would need a whopping £45,400 a year to enjoy a comfortable lifestyle in retirement, according to the latest data from the Pension and Lifetime Savings Association (PLSA), published in June 2026. This is up £1,500 compared to last year, which when the PLSA last updated these numbers, and increases to £62,700 a year for a couple hoping to retire comfortably.
Here we explain why such vast sums are needed to fund a comfortable retirement, and why they shouldn’t put you off saving, as well as looking at some of the steps you might be able to take to boost your retirement savings.
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If you’re considering seeking professional financial advice on the options available to you, we’ve partnered with nationwide Chartered independent advice firm Fidelius to offer Rest Less members a free initial consultation with a qualified financial adviser. There’s no obligation, however if the adviser feels you’d benefit from paid financial advice, they’ll talk you through how that works and the charges involved.
Fidelius are rated 4.7 out of 5 from over 2,600 reviews on VouchedFor, the review site for financial advisers.
Why do I need so much to retire comfortably?
The thought of needing to save vast sums to retire comfortably might seem high in the sky to the majority of us, so how are these numbers arrived at?
The PLSA looked at how much people are likely to need in retirement to achieve either a minimum, moderate or comfortable retirement. A comfortable retirement is defined as one which provides you with relative financial freedom and a few luxuries each year, such as a fortnight 3* or 4* holiday in the Mediterranean costing £2,345 with around £115 per person per day spending money, and three long weekend breaks in the UK with £448 spending money per break.
It also factors in costs such as an extensive bundled broadband and TV subscription, up to £1,500 a year for footwear and clothing costs and around £78 a week on food, plus £44 a week on food out of the home, £22 a week on takeaways, and £110 a month to take others out for a monthly meal.
It would cost a single person £45,400 a year after tax to fund a comfortable lifestyle in retirement once inflation is factored in, according to the PLSA. This would require them to have an annual income (before tax) of £42,172 per year on top of their State Pension, which in the current 2026/27 tax year is £12,548.
They would need a pension pot of between £540,000 and £845,000 to provide them with this level of income if they were buying an annuity. These are rounded, illustrative, indicative figures provided by the PLSA based on annuity rates ranging from £5,000 to £7,500 per £100,000 of pension savings. Annuity rates will vary depending on the type of annuity chosen and your age and health. You can find out more about annuities and how they work in our articles Your pension options at retirement and Annuities explained.
Gary Smith, Senior Client Partner and retirement specialist at wealth management firm Evelyn Partners, said: “The Retirement Living Standards report provides some helpful benchmarks for people trying to gauge how much money they might need after they stop working based on current living costs. But in interpreting the data, there are a few things to remember.
“Many savers will measure how much they will need in retirement based on the sort of lifestyle they have become used to in their working life. So for higher earners who are reluctant to forego too many luxuries, a “comfortable” retirement will be even more expensive than these estimates. But others might be more willing to compromise and cut their cloth according to how much they have managed to save, or could for instance trade down to a smaller property in order to supplement their pension.
“Also, the incomes are based on the current cost of living, so younger and middle-aged savers need to adjust for inflation. If someone currently needs a post-tax income of £45,400 for a “comfortable” lifestyle, they’ll need a lot more in 20 years’ time – if inflation averages 2.5% over the next two decades, that’s roughly £74,800 by 2046.
“Add in the uncertainty about the long-term sustainability of the state pension in its current form, and what is clear is that workers must think seriously about how much they are saving right now. Certainly, the basic auto-enrolment contribution rates will not be enough for many to have the retirement they want.”
How much do I need for a moderate retirement lifestyle?
If you want to achieve what the PLSA defines as a moderate retirement lifestyle, a single person would need to build up a pension pot of approximately £335,000-£505,000.
This would be enough to generate an annual income of £37,732 before tax which, when combined with the full State Pension would provide a total income post tax of £32,700, the amount needed to fund a moderate retirement lifestyle.
A moderate lifestyle includes being able to spend £59 a week on groceries, £33 a week on food out of the home, £11 a week on takeaways and £110 a month to take others out for a monthly meal, as well as a two week all-inclusive 3* break in Europe costing £1,600 and a long off-peak weekend away in the UK every year. Gifting £1,000 to family was also highlighted as a necessity among retirees aiming for a moderate or comfortable lifestyle.
Helen Morrissey, head of retirement analysis, Hargreaves Lansdown said: “These retirement living standards are important in that they start the conversation around how much you need to live on in retirement. For some people, it will be less than the standards suggest, for others it will be more. The key is to make sure that people don’t get a nasty shock as they come to retirement and need to make significant cuts to their lifestyle. The HL Savings and Resilience Barometer uses target replacement rates to assess whether people are on track for an adequate retirement income, with the latest results showing 43% of households are on course to do that.
“It shows the importance of engaging with your pension early. The recent Pension Commission has highlighted that we are undersaving and Pension UK’s own figures estimate only 23% are on track to hit the moderate retirement income they have suggested. It’s clear more needs to be done to boost how much we are putting into our pensions.
“Getting people to think about what they want their retirement to look like is key to helping them work out how much they will need. Using tools such as online pension calculators can then help people work out what they are currently on track to receive and, if they have fallen behind, they can put a plan in place. Taking steps to increase your contribution with every payrise, or making the most of the employer contribution, could be a gamechanger in terms of boosting how much goes in.”
You can find some of the most useful pension calculators in our article Five of the best pension calculators to help you plan for retirement.
How big a pension do I need for a minimum retirement lifestyle?
Someone looking to achieve a minimum lifestyle in retirement would need £1,632 in extra income before tax per year on top of the State Pension. To achieve this, they’d need to have built up a pension pot ranging from around £23,000 to £34,000. A minimum lifestyle factors in spending of around £57 on a weekly food shop and a week long holiday in the UK. It would not provide enough to pay for a car, but it does include a budget of £32 a month for two taxi trips, and £193 per year to cover three rail journeys.
If your target is a minimum retirement, then for most of us, our private and state pensions (as mentioned, the full state pension for 2026/27 is £12,548 per year), and other savings should go a long way towards these costs.
The table below shows how much you’d need to have in retirement savings to fund a minimum, moderate or comfortable retirement. Learn more in our guide Can you afford to retire?
| Single | Income needed (including State Pension) | Approx pension fund size required per person if buying an annuity |
| Comfortable | £45,400 | £560,000-£845,000 |
| Moderate | £32,700 | £335,000-£505,000 |
| Minimum | £13,900 | £23,000-£34,000 |
| Joint | ||
| Comfortable | £62,700 | £315,000-£470,000 |
| Moderate | £45,400 | £170,000-£255,000 |
| Minimum | £22,500 | £0 (fully covered by State Pension) |
Source: PLSA
How can I boost my pension savings?
Many of us can only dream about having the amounts shown above in our pensions, but remember that the actual amount you’ll need in retirement is very personal to you, and will depend on your individual circumstances.
Pete Glancy, head of pension policy at Scottish Widows, said: “The stark reality is that many people simply aren’t saving enough for the future. Our research shows that 12.2 million people are facing pension poverty, with savings that will fall short of the lifestyle they want to lead.
“The Pension Commission has a critical job to do in the coming year. We know the solutions – extending auto-enrolment, building solutions for the self-employed, and crucially, increasing statutory pension contributions to 12%. That shift alone would cut pension poverty from 32% to just 13%.
“However, pensions mustn’t be viewed in isolation. Considering retirement savings alongside other assets, investments, and housing wealth will be key to unlocking better outcomes for people.”
The good news is that there are plenty of steps you might be able to take to boost your pension pot – and ultimately the amount you receive in retirement – from topping up your State Pension to tracking down any lost pensions.
For example, if you’re an employee, it’s worth seeing if your company will pay more into your pension if you increase your contributions. Employer pension contributions can be thought of as a delayed pay rise that you’ll receive in retirement, and can be immensely valuable. Find out more in our guide 11 simple ways to top up your pension.
It’s worth remembering that one of the biggest benefits of pensions is that you’ll receive tax relief on your contributions. If you have any unused annual pension allowance from previous tax years, you may be able to maximise the amount you receive by taking advantage of ‘carry forward’ rules. You can find out more about this in our guide How does pension carry forward work?
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If you’re considering seeking professional financial advice on the options available to you, we’ve partnered with nationwide Chartered independent advice firm Fidelius to offer Rest Less members a free initial consultation with a qualified financial adviser. There’s no obligation, however if the adviser feels you’d benefit from paid financial advice, they’ll talk you through how that works and the charges involved.
Fidelius are rated 4.7 out of 5 from over 2,600 reviews on VouchedFor, the review site for financial advisers.
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