Retirement Living Standards

Estimated financial needs associated with various retirement lifestyles.

Note: Estimated financial needs associated with various retirement lifestyles from the Pensions and Lifetime Savings Association (PLSA)

Amount required for a 'minimum' living standard in retirement
Single person
£14,400
Couple
£22,400
Source
Amount required for a 'moderate' living standard in retirement
Single person
£31,300
Couple
£43,100
Source
Amount required for a 'comfortable' standard of living in retirement
Single person
£43,100
Couple
£59,000
Source

Undersaving in the UK

Number of adults who were not retired but not saving into a pension in 2020
9.6 million
Source
Number of people of working age who are undersaving for retirement
12.5 million
Source
Proportion and number of working age people undersaving for retirement, measured against the PLSA minimum retirement living standard
12% - 4.1 million
Source
Proportion and number of working age people who are undersaving relative to the 'moderate' retirement living standard
51% - 17.7 million
Source
Proportion and number of working age people who are undersaving relative to the 'comfortable' retirement living standard
88% - 30.4 million
Source
Proportion of workers in the lowest income band (<£12,500) who do not meet the required threshold
34%
Source

Single vs couple undersaving

Proportion of single pensioner population who are not expected to hit the PLSA 'minimum' Retirement Living Standard when they retire
19%
Source
Proportion of pensioner couples who are not expected to hit the PLSA 'minimum' Retirement Living Standard when they retire
8%
Source

Target replacement rates

Proportion of earnings that a lower earner would need as income in retirement to ensure a similar lifestyle
80%
Source
Proportion of earnings that a median earner would need as income in retirement to ensure a similar lifestyle
60 to 66%
Source
Proportion of earnings that a higher earner would need as income in retirement to ensure a similar lifestyle
50%
Source

Be pension confident!

Combine your old pension pots into one new online plan. It takes just 5 minutes to sign up.

Get started
Mobile phone with retirement planner screenshot
Be pension confident!
Combine your old and lost pension pots into one new online plan. It takes just 5 minutes to sign up.
Get started

Have a question?Call our UK team020 3457 8444

Monday-Friday: 9:30am-5pm