🏝️ Comfortable Retirement - How much do I need to have saved?

Planning for retirement can feel daunting—but knowing what to aim for and where to get guidance makes it easier. Here’s what to consider:

1. Retirement Living Standards

The Pensions and Lifetime Savings Association (PLSA) defines three living standards based on real UK spending data:

Minimum: Covers essentials; for a single person, about £13,400 per year, or £21,600 per year for a couple.
Moderate: Allows some comfort and flexibility; about £31,700 per year for singles, £43,900 for couples.
Comfortable: Enables a more spontaneous lifestyle; around £43,900 per year for singles, £60,600 for couples.

*Correct as at 23/09/2025

2. How big your pension pot might need to be

To reach these lifestyle standards, you’ll likely need:

Moderate lifestyle: pension pots of approximately £300,000–£490,000 per person
Comfortable lifestyle: pots of around £540,000 up to £800,000 per person.

3. Don’t forget the State Pension

The full new State Pension is approximately £11,970 per year (April 2025–2026). This income provides an important foundation—but for most standards beyond the minimum, additional private savings are essential.

To qualify for a full state pension, you typically need to have had 35 years of full national insurance contributions.