How much does retirement cost in the UK?
According to the Retirement Living Standards published in June 2026, one person needs about £13,900 a year for a minimum retirement, £32,700 for moderate and £45,400 for comfortable. A couple needs £22,500, £45,400 and £62,700.
| Standard | One person | Couple | What it covers |
|---|---|---|---|
| Minimum | £13,900 | £22,500 | Covers all your needs, with some left over for fun |
| Moderate | £32,700 | £45,400 | More financial security and flexibility |
| Comfortable | £45,400 | £62,700 | More financial freedom and some luxuries |
These are amounts to spend after tax, and they assume you own your home outright. If you will still pay rent or a mortgage, you will need more.
How this calculator works
It works out the income before tax you need to spend at your chosen standard, takes off your State Pension and other guaranteed income, and divides the gap by your withdrawal rate to estimate a pot size.
- Spending target from the Retirement Living Standards for one person or a couple.
- Income before tax: grossed up using 2026 to 2027 income tax bands. For couples, income is split equally, which is usually the most tax-efficient case.
- Gap: income needed minus State Pension and any other guaranteed income.
- Pot: the gap divided by your withdrawal rate. At 4%, every £1,000 a year of income needs a £25,000 pot.
It is a deliberately simple, cautious estimate. It ignores the 25% of most pensions you can usually take tax-free, investment growth after you retire and inflation, and it assumes your State Pension has started.
What size pot do people need?
With full State Pensions and a 4% withdrawal rate, a couple needs a pot of about £634,000 between them for a moderate retirement, and a single person about £630,000. A couple on full State Pensions already reaches the minimum standard.
| Standard | One person: pot | Couple: pot (combined) |
|---|---|---|
| Minimum | £42,000 | £0 |
| Moderate | £630,000 | £634,000 |
| Comfortable | £1,054,000 | £1,175,000 |
Those numbers can feel daunting. Two things change them a lot: other guaranteed income such as a final salary pension, and working part-time for longer, which shortens the years your pot has to cover and lets it keep growing.
Questions people ask
How much do I need to retire in the UK?
The June 2026 Retirement Living Standards put yearly spending at £13,900 for a minimum, £32,700 for a moderate and £45,400 for a comfortable retirement for one person, and £22,500, £45,400 and £62,700 for a couple. These assume no rent or mortgage. How big a pot you need depends on your State Pension and other income.
What are the Retirement Living Standards?
They are spending benchmarks published by Pensions UK and researched by Loughborough University, describing what a minimum, moderate and comfortable lifestyle costs in retirement. They are spending after tax and do not include housing costs.
What is the 4% rule?
It is a rule of thumb that taking about 4% of your pot in the first year, then adjusting for inflation, has historically lasted around 30 years. It is not a guarantee, and many UK planners suggest 3 to 3.5% for longer retirements. This calculator lets you choose the rate.
Does the State Pension cover a minimum retirement?
For a couple who both get the full new State Pension, about £25,100 a year, it covers the £22,500 minimum standard. For one person, the full State Pension of about £12,548 falls slightly short of the £13,900 minimum.
Guidance, not advice. This tool gives a simplified estimate based on the information you enter. It is not financial advice. How much you can safely take from a pension depends on your investments, health and plans. For free, impartial help, visit MoneyHelper or book a Pension Wise appointment.
Sources: Retirement Living Standards (Pensions UK, June 2026) · GOV.UK: Rates and thresholds 2026 to 2027 · GOV.UK: The new State Pension.
Reviewed on 7 October 2026 · How our tools work