What's the cost of a comfortable retirement in the UK?

Whether you’ve got 20 years before you retire or just a few, it’s important to have an idea of just how much money you’ll need for a comfortable lifestyle in the UK once you stop earning a regular salary.

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

The PLSA has calculated new figures indicating how much money individuals and couples will need to have a comfortable, moderate or minimum standard of living in retirement.

The important thing to be aware of is that these figures have increased in the past 12 months and may continue to rise if the cost of living also continues to creep up. The PLSA’s latest figures, released in February 2025, show that a single person will now need £13,400 a year to achieve the minimum living standard.

They would need £31,700 a year for moderate, and £43,900 a year for a comfortable lifestyle, which includes a two-week holiday in Europe and several UK mini breaks. For couples, the price tag of these three lifestyles is £21,600, £43,900 and £60,000 per annum.¹

What do we mean by a minimum, moderate and comfortable retirement in the UK?

In the UK, the minimum living standard covers most people’s basic needs. For example, you could holiday in the UK, eat out about once a month and spend around £450 on clothes and footwear a year. But don’t expect to run a car. Even with the 2025/26 full State Pension of £11,973 per year, there’s still a shortfall.

The moderate lifestyle provides for more financial security and, let’s face it, fun. For example, you could afford a two-week holiday in Europe and eat out a few times a month. And you could have a small car.

At the comfortable level, you could enjoy some luxuries and higher ticket items, such as regular beauty treatments, theatre trips and at least two weeks in Europe, plus some weekend mini breaks a year.

Costing out real-life scenarios and discussing them with a financial adviser will help you map out your own savings goals. Thinking about those holidays, or friends you’ve been longing to visit, is a powerful psychological motivator to keep topping up your pension while you’re still working.

Whatever point you’re at on your saving journey, having a specific income in mind can help you focus on the end goal – that deckchair in the sun!

Your pension income reality check in the UK

Many people may be shocked to learn how little income their savings will provide, which is why it’s vital to realise the power of ‘saving sooner rather than later,’ and not simply hoping for the best.

Assuming you qualify for the full annual State Pension of £11,502 (2024/25), the PLSA says you’ll still need to build up a pension pot of £540,000 to £800,000 (for a single person) to achieve a comfortable retirement.¹ This is if you want to turn your pension into an annuity, which pays you a guaranteed annual income for life in retirement. As you get closer to your actual retirement, you’ll be facing other decisions too, which will impact your retirement income and financial well-being. Choosing the best way to access your pension when the time comes can be quite complex, especially when you factor in tax implications. It’s always a wise idea to speak to a financial adviser so you know all your options.

Still have questions about the cost of a comfortable retirement in the UK? 

It’s exciting to think about what lies ahead after that last day in the office. Financial advisers can give you an idea of what your retirement income will be, based on how much you’re saving, and help you work out an achievable financial plan for your retirement in the UK. You can also discover how much money you need to save for retirement or use our retirement calculator to find out how much you need to save to fund the lifestyle you want.

Whether it’s a three-week holiday of a lifetime, escaping to the country, or simply being able to visit family and friends whenever you like, having those specific retirement goals to save for is the first step. We all deserve a comfortable retirement. By planning your longer-term finances now, you'll feel confident and in control of some of the best years of your life.  

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This article is a general communication that is provided for informational purposes only. It should not be relied upon as financial advice, and it does not constitute a recommendation, an offer or solicitation. No responsibility can be accepted for any loss arising from action taken or refrained from based on this publication. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted.

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Source

¹Retirement Living Standards, Pensions and Lifetime Savings Association, 2025. All figures quoted were developed by the Centre for Research in Social Policy at Loughborough University on behalf of the PLSA.