Home/Money guides/Pensions/How much do I need to retire?

How much do you actually need to retire?

Work out what your life costs, subtract the State Pension, and the pot you need falls out of the sum. Starting from a pot size is why the number feels arbitrary.

Send us a message Message on WhatsApp
The short answer

A moderate retirement costs roughly £32,700 a year for one person and £45,400 for a couple, before housing. The full State Pension is £12,547.60 a year in 2026-27, which covers part of that. The gap, divided by about 4%, gives the rough pension pot you need.

£32,700Moderate standard, single, a year
£45,400Moderate standard, couple, a year
£12,547.60Full State Pension a year
About 4%Rough sustainable withdrawal rate
What is on this page
  1. Three budgets, priced honestly
  2. Start from the State Pension
  3. Turning a target income into a pot
  4. The levers that actually move the number
  5. How to get your own number

Three budgets, priced honestly

Retirement costs are not a mystery. They are your current spending, minus commuting and a mortgage, plus more time at home and more heating.

Standard Single person, a year Couple, a year What it covers
Basic About £13,900 About £22,500 All needs met, food, heating, no car, one UK week away
Moderate About £32,700 About £45,400 A car, more spent on food, a two-week holiday in Europe
Comfortable About £45,400 About £62,700 Regular replacement of the car, more generous holidays and gifts

Illustrative UK retirement living standards. Housing costs are excluded, which is why owning your home outright matters so much.

Read the last line again. These figures assume no rent and no mortgage. If you will still be paying for housing, add it on top.

Start from the State Pension

The full new State Pension is £12,547.60 a year in 2026-27 (£241.30 a week). A couple with two full records get roughly double that.

That covers the minimum standard for a couple (£22,500). It falls slightly short of the minimum for one person (£13,900), and a long way short of moderate for anyone.

The gap between the State Pension and your target is what your own pensions have to fill. That is the whole calculation.

Turning a target income into a pot

A rough rule of thumb, not a guarantee, is that a pot supports about 3% to 4% of its value a year, adjusted for inflation, over a long retirement.

Suppose you want £32,700 a year and the State Pension gives £12,548. The gap is £20,152. At 4% that suggests a pot around £504,000. At a more cautious 3.5% it is closer to £576,000.

Those numbers frighten people. They should be read as a direction, not a verdict. Part-time work, a smaller home, a later start date and a partner's pension all change the answer.

Want this checked against your own situation?

Send us the figures and we will tell you what they mean. If it is not ours to advise on, we will say who should.

Ask us a question

Prefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.

This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

The levers that actually move the number

Working two years longerTwo more years of contributions and two fewer years of drawing.
Employer matchingFree money you have to opt into.
Clearing the mortgageHousing is excluded from the standards above for a reason. Owning outright cuts the target by whatever you currently pay.
Charges

How to get your own number

1

Get the State Pension forecast

Free on GOV.UK, five minutes, gives a real figure.

2

Add up every private pot

Include old employers. Trace anything missing.

3

Pick your standard

Basic, moderate or comfortable, and be honest about it.

4

Subtract, then divide

Target minus State Pension, divided by 0.04, is your rough pot.

5

Check it yearly

Once a year is enough. Ten minutes beats a surprise at 60.

Where you stand

This helps if
  • You want a target rather than a vague worry
  • You are within twenty years of stopping work
  • You have several pots and no idea what they add up to
  • You are deciding whether to work two years longer
Treat the numbers carefully if
  • You will still be paying rent or a mortgage, since housing is excluded
  • Your health suggests a shorter or longer retirement than average
  • A large part of your wealth is in a business or property
  • You expect to inherit, which is never a plan you can date

Check broadband before you make an offer

Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.

Want all your bills in one?

We can introduce you to a specialist who can combine your mobile, broadband and utilities into one bill. There's no fee for the introduction.

We don't provide these services ourselves. Switching household bills is not a regulated financial service, so FCA protections and the Financial Ombudsman do not apply. We'll only pass your details to the specialist if you ask us to. See our privacy notice.

Questions people actually ask

How much do I need to retire in the UK?
As a rough guide, a moderate standard costs around £32,700 a year for one person and £45,400 for a couple, before housing costs. Subtract the State Pension to find what your own pensions must provide.
Is £500,000 enough to retire on?
For a single person aiming at a moderate standard with a full State Pension, it is close. For a comfortable standard it is short. It depends heavily on whether you own your home.
How much should I have saved by 40?
Does the State Pension count towards this?
Yes, and it is the largest single piece for most people. The full rate is about £12,547.60 a year, index-linked and paid for life.
What if I am starting late?
Later starts rely more on contribution level and retirement date than on investment returns. Employer matching, working slightly longer and clearing housing costs do most of the work.
How do I check broadband speed at a property?
Use Ofcom's free broadband and mobile checker at checker.ofcom.org.uk. Enter the property's postcode and choose the address to see which broadband speeds and mobile coverage are available before you make an offer.

Where to go next

State Pension explainedThe biggest single piece.Pension drawdown explainedTurning a pot into income.Annuities explainedBuying income you cannot outlive.Worth paying more in?Relief and matching.Pension or ISA first?Where the next pound goes.Budgeting and debtThe spending side of the sum.
Where these figures come from

Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.

Written by Ben Tomlin. Pension advice goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

Last reviewed September 2026.

Want to know whether your number works?

Send us what you have and what you want to spend. We will tell you plainly whether it holds up.

Start a conversation

Prefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.

This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

Back to blog