How much do I need to retire?
One of the most common questions we hear as Money Guides at Planned Future is "How much do I actually need to retire?".
How much do I need to retire?
One of the most common questions we hear as Money Guides at Planned Future is: How much do I actually need to retire? The honest answer is always that it depends on the lifestyle you want.
Do you want to stay close to home and enjoy a slower pace of life? Travel regularly? Help children or grandchildren financially?
Your retirement income should reflect the life you want to live. A useful starting point is the latest figures from the Pensions and Lifetime Savings Association Retirement Living Standards, which outline three levels of retirement living.
- Basic lifestyle: £13,400 a year for a single person or £21,600 as a couple.
- Moderate lifestyle: £31,700 a year for a single person or £43,900 as a couple.
- Comfortable lifestyle: £43,900 a year for a single person or £60,600 as a couple.
These figures assume you’ve paid off your mortgage or own your home outright.
What do these lifestyles look like?
For a basic retirement (£13,400 per year)
This covers the essentials, with a few extras.
For example:
- Weekly food shop and household bills covered
- Occasional meals out
- A UK holiday every few years
- Public transport or maintaining an older car
- Basic leisure activities
Case study: Margaret, 69, receives the full State Pension and has a small workplace pension worth around £1,000 per year. She enjoys gardening, seeing friends locally, and spending time with family.
For a moderate retirement (£31,700 per year)
This offers more flexibility and financial breathing room.
For example:
- A two-week European holiday each year
- Eating out regularly
- Running a reliable car
- More spending on hobbies and social activities
- Replacing household items when needed
Case study: Darnel, 67, wants to travel around Europe with his partner, play golf twice a week, and treat the grandchildren occasionally. Together, they aim for around £44,000 per year in retirement income.
For a comfortable retirement (£43,900 per year)
This allows for greater freedom and choice.
For example:
- Long-haul holidays
- A newer car replaced every few years
- More frequent dining out
- Home improvements
- Greater capacity to help family financially
Case study: Carol, 60, plans to retire at 65. She wants to spend winters abroad, pursue her hobbies, and have the confidence that unexpected expenses won’t disrupt her plans. She is targeting around £44,000 a year as a single retiree.
So, what pension pot might you need?
As a very rough guide, if you retired around State Pension age and received the full State Pension, the additional pension savings required could look something like this:
| Desired Lifestyle | Approximate Pension Pot Needed* |
|---|---|
| Minimum | Little or no additional pot |
| Moderate | £250,000 – £400,000 |
| Comfortable | £450,000 – £700,000+ |
*These are broad estimates and will vary depending on when you retire, investment returns, tax, and whether you have other assets or income.
A question worth asking yourself
Rather than asking: How much money do I need? try asking: What do I want my retirement to look like?
Once you know that, you can work backwards and create a realistic plan. At Planned Future, our Money Guides help people understand what income they might need in retirement, whether they’re on track with their current pensions and how small changes today could improve their future options.
Retirement planning doesn’t have to be overwhelming. Sometimes, a simple conversation is all it takes to gain clarity and confidence about the road ahead.
If you’d like to understand what retirement could look like for you, book a complimentary conversation with a Planned Future Money Guide today.
*The case study provided is based on an individual circumstance and the outcomes are not necessarily applicable to everyone as personal situations differ. It is usually necessary to have a one-on-one meeting with a Money Guide to assess your unique situation. These examples are shared to illustrate the various areas where we can offer financial signposting and guidance.
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Guidance, information, signposting and considering your options in relation to one or more of your financial issues.
- Retirement planning
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The initial half-hour meeting with your Money Guide costs just £25. Further Money Guide time is chargeable at £96 for half an hour and £180 for an hour. All prices are inclusive of VAT.
By video or telephone meeting.
Potentially, if there is a quick and straightforward answer or signposting, this can be done in the first meeting. Usually, further research and a follow up meeting is necessary, which is chargeable.
No, we are not Regulated Financial Advisers and legally we are unable to give specific advice or personal recommendations. We can refer you to an Independent Financial Adviser if this is appropriate.
Although our Money Guiders are not Regulated Financial Advisers, they all have extensive experience in the personal finance arena.
This includes planning for retirement, defined benefit & defined contribution pension options, savings & investments and many other areas.
