They’re created by Pensions UK to help people understand what retirement could cost in the UK.
The standards outline three levels of living: minimum, moderate and comfortable. All three standards assume you own your home outright with no rent or mortgage payments Each level shows what you could afford based on your annual retirement income.
From covering essentials like food and heating to enjoying holidays and hobbies, these benchmarks can help you plan your savings.
Whether you’re starting to save or you’re close to retirement, understanding these standards may help you work out how much you need for the lifestyle you want.
Why Retirement Living Standards matter
Planning for retirement can feel overwhelming. How much is enough? What lifestyle can you actually afford? The Retirement Living Standards may help answer these questions by showing what retirement costs at three different levels.
It could help you:
set realistic savings targets;
understand what different income levels can buy;
make informed decisions about pension contributions; and
plan ahead with confidence.
The standards cover everyday costs like food, bills and transport. They also include social activities, holidays and treats. This gives you a more complete picture of what each lifestyle might look like in practice.
If you’re wondering how much money you need to retire, these benchmarks are a helpful starting point. You can also use PensionBee’s Pension Calculator to see how much you may need to save for retirement and whether you’re on track.
Who defines these standards?
The Retirement Living Standards are set by Pensions UK - a not-for-profit group that represents pension schemes across the UK.
To create these standards, Pensions UK study how people spend their money in retirement. They look at the cost of everyday items and group them into ‘baskets’ that show different types of lifestyles. These baskets include things like food, energy bills, clothes, and holidays.
The standards are checked every year to keep them up to date with inflation and changes in living costs. They also work with researchers at Loughborough University to make sure the figures reflect real life.
Because the standards are based on real spending, they give a useful guide to what people might need for a good quality of life in retirement.
The three types of retirement lifestyles
The Retirement Living Standards outline three levels - minimum, moderate and comfortable and how much income you’ll need for each.
Minimum standard
How much you might need (2025/26 figures):
| Household type | Annual income needed |
|---|---|
| Single person | Around £13,400 |
| Couple | Around £21,600 |
The minimum standard has decreased slightly compared with last year, mainly due to lower energy costs.
What it includes:
| Category | What you may get |
|---|---|
| Food and drink | Simple but healthy diet |
| Heating | Enough to stay comfortable |
| Clothing | Suitable for different weather conditions |
| Home maintenance | Essential household repairs |
| Social activities | Basic social activities |
| Holidays | One week per year |
| Family support | Financial gifts to family members |
Moderate standard
The moderate standard offers a little more flexibility and financial security. It allows for a comfortable lifestyle with some treats and occasional extras.
How much you might need (2025/26 figures):
| Household type | Annual income needed |
|---|---|
| Single person | Around £31,700 |
| Couple | Around £43,900 |
What it includes:
| Category | What you may get |
|---|---|
| Food and drink | Varied diet with more choice and quality |
| Eating out | Regular trips to restaurants, pubs or cafes |
| Holidays | Two weeks per year |
| Clothing and furnishings | Updated when needed |
| Hobbies and leisure | Gym membership or cinema trips |
| Emergency fund | Money set aside for unexpected costs |
| Family support | Financial gifts to family members |
Comfortable standard
The comfortable standard allows for greater flexibility, more experiences and a few luxuries. It reflects a higher quality of life with regular activities and treats.
How much you might need (2025/26 figures):
| Household type | Annual income needed |
|---|---|
| Single person | Around £43,900 |
| Couple | Around £60,600 |
What it includes:
| Category | What you get |
|---|---|
| Food and drink | Varied, high-quality diet with regular meals out |
| Holidays | Three weeks abroad per year, including long-haul trips |
| Transport | A car and the ability to replace it |
| Technology | Updated laptops, tablets and smartphones |
| Hobbies and entertainment | Regular spending on cultural activities |
| Home services | Help with cleaning or gardening |
| Family support | Financial gifts to family members |
This level can give you a bit more financial freedom in retirement.
You might be able to travel, spend time on hobbies, help your family financially, and replace things when you need to, without having to think too much about the cost.
How much do you need for your lifestyle?
Now that you know the three levels, it’s time to think about which one matches your goals. What kind of retirement do you want for yourself?
Start by considering:
where you want to live and whether you’ll own your home;
how often you want to travel and where;
what hobbies and activities you want to pursue;
whether you want to help family members financially; and
how much flexibility you want for unexpected costs.
These benchmarks are a guide, not a strict rule. Your actual needs might fall somewhere between levels or depend on your personal circumstances.
The important thing is to have a target. Once you know what you’re aiming for, you can work backwards to figure out how much you might need to save.
What’s the average pension income in the UK?
According to the latest GOV.UK Pensioners’ Incomes Report, around 70% of UK pensioners receive income from a private pension, with an average of £208 per week - roughly £10,800 a year - for those who have one.
When you add the full new State Pension, currently £11,502 a year (2025/26), the average total retirement income comes to about £19,300 a year.
That puts most people somewhere between the minimum and moderate standards of living in retirement, based on Pension UK - but still below the comfortable level.
For many people, the State Pension alone may not provide the lifestyle they’d like in retirement. Building up workplace and personal pensions alongside it could help close the gap, especially as the State Pension age depends on when you were born.
These figures are UK averages, but your own pension savings could vary significantly depending on where you live, your age, and your gender. Check out our Pension Landscape to see how average pension pots compare across different UK regions and demographics.
Planning your retirement lifestyle
If there’s a gap between where you are now and where you want to be, don’t panic. Here are a few practical steps that could help:
Tracking down old pensions - many people have several pots from different jobs. Bringing them together may make them easier to manage and could help reduce fees.
Increasing your contributions - even small pension contribution increases can add up over time. If your employer offers matched contributions, it’s worth checking you’re making the most of them.
Reviewing your pension plan - it’s a good idea to check that your investments still align with your goals and timeframe. Younger savers may feel comfortable taking more risk, while those closer to retirement might prefer to take a more cautious approach.
Budgeting for retirement - thinking about your expected income and expenses can help you plan ahead and spot any gaps early.
Remember, everyone’s retirement journey is different, and small steps can make a meaningful difference over time. Staying engaged with your pension can help you feel more confident about the future you’re working towards.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
Last edited: 14-11-2025
