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The amount of annual income needed to provide a minimum standard of living in retirement has risen from £13,400 to £13,900, according to the Pensions and Lifetime Savings Association (PLSA).
The PLSA’s Retirement Living Standards report reflects the impact of inflation on the amount retirees need to fund retirement, depending on various lifestyles. Obviously, the exact amount you’ll need in retirement will depend very much on your individual circumstances and the sort of lifestyle you want, so these numbers should only be used as a very rough guide.
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Here, we look at the PLSA data in more detail.
How much do you need to retire?
The Centre for Research in Social Policy at Loughborough University calculates the figures for three different standards of retirement living on behalf of the PLSA: minimum, moderate and comfortable. The minimum standard covers basic needs such as groceries and home maintenance, as well as the occasional treat or social activity, such as eating out, gift-giving, and taking a short UK holiday. It does not factor in the cost of owning a car, however.
The latest data shows that the cost of a minimum standard of living in retirement has risen to £13,900 in 2026 for a single person, and from £21,600 to £22,500 for a couple.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “It’s important to note that these living standards assume that people enter retirement as homeowners – however, we know that more people are entering their retirement years with a mortgage or rent still to pay, and this significantly hikes the amount they will need to save.
“In recent years, the wording around the standards has been tweaked so that it covers one and two person households rather than single and couples. This reflects the fact that not everyone will have a partner or be married in retirement but could live with others – be it friends, family members or lodgers. It’s a shift we could see more of as time goes on, as people go into retirement still paying housing costs or have loved ones living with them while they save for a deposit for their own home.”
The amount of income needed for a moderate standard of living in retirement has jumped from £31,700 to £32,700 in 2026 for a single person, the PLSA said, and from £43,900 to £45,400 for a couple. This includes the cost of running a car, longer holidays abroad and increases the amount spent on basics such as food.
Craig Rickman, personal finance expert at interactive investor, said: “It’s worth noting that the Retirement Living Standards only offer a steer on what secures a minimum, moderate, or comfortable retirement. The level of income and/or savings individuals and couples need will depend on their personal goals and spending habits.
“A comfortable retirement will mean different things to different people; Pension UK’s annual calculations can provide a useful starting point, but the key is to think about the lifestyle you aspire to once you leave the workforce, work out the amount you need to save, and start planning as early as you can.”
How much pension do I need to live comfortably?
The income needed for a single person to achieve a comfortable standard of living has risen from £43,900 to £45,400 in 2026. Similarly, the amount needed to provide a comfortable retirement income for a couple last year was £60,600, but this has increased to £62,700 in 2026. A comfortable retirement includes things like regular beauty treatments, trips to the theatre, a holiday in Europe and three UK breaks each year. The amount spent on food shopping is also higher. Full tables including lifestyle expectations are included below.
Bear in mind that these figures don’t factor in housing costs, so the costs for some pensioners will be much higher. The PLSA headline figures are also after tax, so more will be needed as pre-tax income. For example, a single person now needs £32,700 for a moderate retirement, which translates as £37,732 before tax.
| Minimum | Moderate | Comfortable | |
| One-person household | £13,900 a year | £32,700 a year | £45,400 a year |
| What standard of living could you have? | Covers all your needs, with some left over for fun. | More financial security and flexibility. | More financial freedom and some luxuries. |
| House | DIY £200 a year to maintain condition of your property. | £500 a year to maintain condition of your property, £300 contingency. | £600 a year to maintain condition of your property, £300 contingency. |
| Food | Around £57 a week on groceries, £30 a month on food out of the home, £12 per month on takeaways. | Around £59 a week on groceries, £33 a week on food out of the home, £11 a week on takeaways, £110 a month to take others out for a monthly meal. | Around £78 a week on food, £44 a week on food out of the home, £22 a week on takeaways, £110 a month to take others out for a monthly meal. |
| Transport | No car, free bus pass, £32 per month for two taxi trips, £193 per year to cover 3 rail journeys. | 3-year-old small car, replaced every 7 years, £23 a month on taxis, £112 per year on rail fares. | 3-year-old small car, replaced every 5 years, £23 a month on taxis, £223 per year on rail fares. |
| Holidays & Leisure | A week-long UK holiday. TV license and broadband plus a streaming service with ads. £21 per week for activities. | A fortnight 3* all-inclusive holiday in the Med (£1,600) and a long weekend off-peak break in the UK. with £336 spending money. TV license and broadband plus two streaming services. £45 per week for activities. | A fortnight 4* holiday in the Med (£2,345) with around £115 per person spending money and 3 long weekend breaks in the UK with £448 spending money per break. Extensive bundled broadband, streaming and TV entertainment subscription. £56 a week for activities. |
| Clothing & Personal | Up to £460 for clothing and footwear. | Up to £1,500 for clothing and footwear. | Up to £1,500 for clothing and footwear. |
| Helping Others | Twelve gifts of £20 for birthday presents and 12 gifts also of £20 for Xmas present. | Twelve gifts of £30 for birthday presents and 12 gifts of £30 for Xmas presents, £200 a year charity donation, £1,000 for supporting family members e.g. paying for grandchildren’s activities. | Twelve gifts of £50 for birthday presents and 12 gifts of £50 for Xmas presents, £300 per year charity donation, £1,000 family support. |
*The figures shown are the amounts of annual expenditure required to achieve the living standard (ie they are not gross income figures).
| Minimum | Moderate | Comfortable | |
| Two-person household | £22,500 a year | £45,400 a year | £62,700 a year |
| What standard of living could you have? | Covers all your needs, with some left over for fun. | More financial security and flexibility. | More financial freedom and some luxuries. |
| House | DIY £200 a year to maintain condition of your property. | £500 a year to maintain condition of your property, £300 contingency. | £600 a year to maintain condition of your property, £300 contingency. |
| Food | Around £111 a week on groceries, £60 a month per household on food out of the home, £24 a month per household on takeaways. | Around £107 a week on groceries, £66 a week per household on food out of the home, £22 a week per household on takeaways, £110 a month to take others out for a monthly meal. | Around £139 a week on food, £88 a week per household on food out of the home, £33 a week per household on takeaways, £110 a month to take others out for a monthly meal. |
| Transport | No car, free bus pass, £32 per month to cover two taxi trips, £193 per year per person to cover 3 rail fares. | 3-year-old small car, replaced every 7 years, £23 a month on taxis per household, £112 a year on rail fares per person. | 3-year-old small car, replaced every 5 years, £23 a month on taxis per household, £223 a year on rail fares per person. |
| Holidays & Leisure | A week-long UK holiday (£789). TV license and broadband, plus a streaming service with ads. £20 a week per person for activities. | A fortnight 3* all-inclusive holiday in the Med (£1,206) and a long weekend off-peak break in the UK with £321 spending money. TV license and broadband, plus two streaming services. £43 a week per person for activities. | A fortnight 4* half board holiday in the Med (£1,789) with around £115 per person per day spending money and 3 long weekend breaks in the UK with £448 spending money per break. Extensive bundled broadband, movie and TV entertainment subscription. £56 a week per person for activities. |
| Clothing & Personal | Up to £441 for clothing and footwear each year per person. | Up to £1,269 for clothing and footwear each year per person. | Up to £1,269 per person for clothing and footwear each year. |
| Helping Others | Twelve gifts of £20 for birthdays and the same amount for 12 Xmas presents. | Twelve gifts of £30 for each birthday and the same amount for 12 Xmas presents, £200 per household a year for charity donations. £1,000 for supporting family members e.g. paying for grandchildren’s activities, treats, trips etc. | Twelve gifts of £50 for each birthday and the same amount for 12 Xmas presents, £300 per household a year for charity donations. £1,000 for supporting family members e.g. paying for grandchildren’s activities, treats, trips etc. |
*The figures shown are the amounts of annual expenditure required to achieve the living standard (ie they are not gross income figures).
Source: PLSA
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.”
Fortunately, the State Pension increased by 4.8% in April 2026, in line with earnings growth. As a result, the new State Pension is currently £241.30 a week, up from £230.25 a week in the previous tax year. The full basic State Pension has increased from £176.45 a week to £184.90. Read more in our articles What is the pension triple lock? and What is the State Pension in 2026?
How to meet the rising cost of retirement
If you’re worried that you won’t have enough to afford your planned lifestyle at retirement, and you can afford to do so, you might want to consider saving more than the minimum automatic enrolment limit into your pension. You can find out more about auto-enrolment in our guide How does pension auto-enrolment work?
If you’re paying into a private pension, then similarly, you may want to think about boosting the amount you contribute if you can afford to.
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.”
You can find out more about pensions and tax relief in our guide How pension tax relief works.
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If you’re considering seeking professional financial advice on the options available to you, nationwide advice firm HUB Financial Solutions is offering you a free initial consultation with an expert retirement specialist. There’s no obligation; it’s to help you understand your options and how our services work. If you choose to receive paid-for regulated advice, we’ll explain how that works and the fees involved.
HUB Financial Solutions is rated ‘Excellent’ on Trustpilot (Mar 2026). With investing, your capital is at risk.
Find out more in our guide How much should I save for retirement?
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