How much do I need to retire in the UK?
The short answer: it depends on the life you want. Pensions UK (formerly the PLSA) says one person needs about £13,900 a year for a minimum retirement, £32,700 for a moderate one and £45,400 to be comfortable, after tax. With the full State Pension, a moderate retirement on your own needs a pension pot of around £630,000.
What each retirement costs a year
| Lifestyle | One person | Couple | What it buys |
|---|---|---|---|
| Minimum | £13,900 | £22,500 | Basics, a UK holiday, eating out about once a month |
| Moderate | £32,700 | £45,400 | A two-week holiday abroad, a car, more for gifts and eating out |
| Comfortable | £45,400 | £62,700 | Regular holidays abroad, a newer car, more for home and treats |
These are spending figures after tax, for people who own their home outright and live outside London.
The pension pot you would need
Take the income you need before tax, subtract the full State Pension of £12,548, and divide what is left by 4%.
| Lifestyle | Income before tax (one person) | Gap after State Pension | Pot needed, one person | Pot needed, each of a couple |
|---|---|---|---|---|
| Minimum | £14,233 | £1,685 | £40,000 | £0 |
| Moderate | £37,733 | £25,185 | £630,000 | £315,000 |
| Comfortable | £54,720 | £42,172 | £1,055,000 | £585,000 |
The 25% tax-free cash you can take from a pension lowers the tax and so the pot needed a little. Buying an annuity instead of drawing down gives a guaranteed income; the pot needed depends on annuity rates when you retire.
How much to save each month
To build the £630,000 for a moderate retirement by 67, from nothing, assuming your money grows 2.5% a year faster than inflation:
| Starting age | Years to 67 | Monthly total, including employer and tax relief |
|---|---|---|
| 25 | 42 | £708 |
| 35 | 32 | £1,073 |
| 45 | 22 | £1,792 |
| 55 | 12 | £3,756 |
Starting at 25 instead of 45 cuts the monthly cost by more than half. Your employer's contribution and tax relief count towards these totals, so what leaves your pay is less. See how much pension you should have by age to check where you are now.
Your State Pension
The full new State Pension is £12,548 a year in 2026/27. You need 35 qualifying years of National Insurance for the full amount, and at least 10 to get anything. The State Pension age is rising from 66 to 67 between 2026 and 2028. Check your forecast and any gaps on GOV.UK; filling gaps with voluntary contributions can be good value.
What changes the number
- Renting or a mortgage: add your housing costs on top. Paying off the mortgage first makes a big difference. See mortgages after 50.
- A defined benefit pension: NHS, teachers, civil service and other public sector pensions pay a guaranteed income, so you need a much smaller pot. See is the NHS pension worth it?
- Retiring early: you need to cover the years before the State Pension starts, which makes the pot much bigger.
- London: living costs are higher, so the standards are higher too.
- Spending changes with age: most people spend more in their 60s and less in their late 70s, until care costs come in.
A quick rule of thumb
A common guide is to save half your age as a percentage of salary when you start: 15% at 30, 20% at 40, including your employer's share. It is rough, but much better than the 8% auto-enrolment minimum if you want more than a basic retirement.
What the auto-enrolment minimum gets you
Someone on £30,000 paying the minimum 8% of qualifying earnings from age 22 to 67 puts in about £1,901 a year, counting their employer and tax relief. With growth of 2.5% above inflation, that could build a pot of around £158,000 in today's money. Drawn at 4%, it adds about £6,316 a year to the State Pension, enough to get past the minimum standard but well short of moderate.
Drawdown or an annuity?
- Annuity: swaps your pot for a guaranteed income for life. You cannot outlive it, and higher interest rates have made rates better than a few years ago.
- Drawdown: keeps your pot invested and you take what you need. More flexible and can be left to family, but it can run out if you take too much or markets fall.
- Mix: many people use some of their pot for an annuity to cover essentials and keep the rest in drawdown.
Pension Wise, the free government service, offers a guidance appointment from age 50 to talk through your options.
Finding pensions you have lost track of
If you have changed jobs a few times, you may have several small pots. The free Pension Tracing Service on GOV.UK finds contact details for old schemes. Pension providers are being connected to pensions dashboards, which will let you see all your pensions in one place. Combining small pots can make them easier to manage, but check for lost guarantees or exit fees first. See the small pension pots rule.
If you have little saved
If your income in retirement is low, Pension Credit tops it up and can unlock help with council tax, housing costs and heating. Many eligible pensioners do not claim it. Check on GOV.UK once you reach State Pension age.
This is general information, not financial advice. Figures use the Pensions UK Retirement Living Standards 2026 and 2026/27 tax for England, Wales and Northern Ireland. Investments can fall as well as rise.
Common questions
How much do I need to retire comfortably in the UK?
Pensions UK puts a comfortable retirement at £45,400 a year after tax for one person and £62,700 for a couple in 2026. For one person, that needs a pension pot of roughly £1,055,000 on top of the full State Pension.
What is a good pension pot at retirement?
For a moderate retirement on your own, around £630,000, using a 4% withdrawal rate and the full State Pension. A couple needs roughly £315,000 each.
Does the State Pension cover the minimum?
Almost, for one person: the full new State Pension is £12,548 a year against a minimum of £13,900. For a couple with two full State Pensions, it covers the minimum.
Do these figures include rent or a mortgage?
No. They assume you own your home outright. If you will still be renting or paying a mortgage, add those costs on top.
What is the 4% rule?
A rule of thumb that you can take about 4% of your pot in the first year and raise it with inflation, with a good chance it lasts 30 years. It is a guide, not a guarantee.
How do I find old pensions I have lost track of?
Use the free Pension Tracing Service on GOV.UK to find contact details for old workplace and personal pension schemes. Never pay a company to trace pensions for you.