How much pension do I need to retire?
For a single person, the PLSA's moderate retirement standard is £32,700 a year. The full new State Pension, set under gov.uk's new State Pension rules, covers about £12,548 of that. Using a 4% withdrawal rate, the shortfall points to an estimated pension pot of about £503,810, a figure that depends on the assumptions used.
How big a pension pot do I need?
Start with the income wanted each year. Take off the State Pension, which under gov.uk's new State Pension rules is a guaranteed, inflation-linked income covering a large part of a minimum or moderate lifestyle. What is left must come from a private pot. Dividing that yearly figure by a sustainable withdrawal rate, around 4%, gives the estimated pot needed. The monthly saving then comes from working backwards over the years available, allowing for growth above inflation.
How much pension pot is needed for the PLSA moderate standard?
Aiming for the PLSA moderate income of £32,700 a year as a single person, the full State Pension provides about £12,548, leaving £20,152 to come from a private pot. At a 4% withdrawal rate that points to an estimated pot of roughly £503,810. Starting 30 years out with nothing saved, and 3% real growth, that is estimated to need about £871 a month.
What are the PLSA Retirement Living Standards?
| Minimum (covers the basics) | £13,900/year |
|---|---|
| Moderate (more financial security) | £32,700/year |
| Comfortable (more freedom and luxuries) | £45,400/year |
These are the Pensions and Lifetime Savings Association figures for a single person living outside London. Couples can share costs, so the per-person figure is lower. They are a sense check rather than a rule, since housing costs and personal plans affect the amount actually needed.
Common questions
How much do I need to retire in the UK?
The PLSA Retirement Living Standards put a single person's minimum at £13,900 a year, moderate at £32,700, and comfortable at £45,400. The full new State Pension covers about £12,548 of that, so your own pot only has to fund the gap.
How big a pension pot do I need?
A rough rule is to divide the income you need from your pot by a sustainable withdrawal rate of about 4%. For a £32,700 moderate income, after the State Pension you need roughly £20,152 a year from the pot, which points to a pot of about £503,810.
How much should I save each month?
It depends on how long you have. Starting 30 years out, at 3% real growth, reaching that pot takes about £871 a month. Starting later means a steeper monthly figure, which is why beginning early matters so much.
Does the State Pension count towards my target?
Yes. The full new State Pension, paid under gov.uk's new State Pension rules, is a sizeable, inflation-linked, guaranteed income that covers a large part of a minimum or moderate lifestyle. Netting it off first is why the private pot needed is smaller than the headline target suggests.
How much pension pot is needed for the PLSA moderate standard?
Aiming for the PLSA moderate income of £32,700 a year, the full State Pension is estimated to cover £12,548 of it, leaving £20,152 to come from a private pot. At a 4% withdrawal rate this points to an estimated pot of about £503,810. The figure is sensitive to the withdrawal rate and growth assumptions used.
What are the PLSA Retirement Living Standards?
The Pensions and Lifetime Savings Association sets three yearly income levels for a single person outside London: minimum at £13,900, moderate at £32,700, and comfortable at £45,400. They describe typical lifestyles rather than fixed rules, and couples sharing costs need a lower amount per person.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.