How much do I need to retire in the UK?

Published: 17/09/2025 By Hannah Duncan

“How much do I need to retire?” is one of the most common financial planning questions people ask and for good reason. Retirement is likely to be the longest holiday of your life and knowing whether your pension savings will stretch far enough is essential.

In the UK, the Retirement Living Standards provides clear guidance, these figures help people picture what life in retirement might cost at three different levels: minimum, moderate, and comfortable.

Retirement Living Standards 2025–26
For a single person:

• Minimum: £13,400 a year – covers essentials, but little flexibility.
• Moderate: £31,700 a year – allows for some extras such as meals out and short UK holidays.
• Comfortable: £43,900 a year – provides financial freedom with holidays abroad, hobbies, and more security.

• Minimum: £21,600 a year.
• Moderate: £43,900 a year.
• Comfortable: £60,600 a year.

How does the State Pension fit in?
The UK State Pension for 2025/26 is set at just over £11,970 per year. While this forms a useful base, it falls well short of even the moderate standard of retirement living. That’s why building private pensions and investments is vital if you want a comfortable retirement.

Pension savings needed for retirement
So, how much do you really need to retire? Based on current annuity rates, the Retirement Living Standards research suggests:

• Single person, comfortable lifestyle: £540,000 – £800,000 pension fund required.
• Couple, comfortable lifestyle: £300,000 – £460,000 each.
• Single person, moderate lifestyle: £330,000 – £490,000 pension fund required.

Even at the moderate level, this shows you may need £300,000 or more in pension savings to bridge the gap.

Why planning early matters
The figures can sound daunting, but the key is to start planning early. Increasing contributions to your workplace pension, reviewing old pension pots, and investing wisely can all make a huge difference over time.

Remember: retirement could last 20–30 years or more. Having a clear plan now gives you greater freedom later.

Next Steps: Find out your retirement number
If you’ve ever wondered “Do I have enough to retire?”, now is the time to check. Knowing your retirement number and the savings and income you’ll need is the first step towards confidence.
Our wealth management team can help you review your pensions, identify any gaps, and build a retirement plan tailored to your goals. Give us a call on 020 8661 7878 or email advice@turpinba.co.uk