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20 April 2025 · 5 min read

How Much Pension Do I Need to Retire in the UK?

The PLSA says a comfortable single retirement costs £43,100/yr. Here's the pension pot that produces that.

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The Pensions and Lifetime Savings Association publishes annual retirement living standards. 2025 figures for a single person outside London:

PLSA standards (single, outside London)

Minimum: £14,400/yr — covers essentials, one UK holiday, no car.

Moderate: £31,700/yr — small car every 7 years, two-week European holiday.

Comfortable: £43,100/yr — newer car, three weeks abroad, theatre.

What pot do you need?

Using the 4% rule and including the full state pension (~£11,973/yr in 2025/26):

Minimum: roughly £61,000 pot (state pension alone almost covers it).

Moderate: roughly £494,000 pot.

Comfortable: roughly £778,000 pot.

Reality check

The average UK pension pot at retirement is £107,000 (FCA, 2023). Most people will need to either save much more from now or work past 67.

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