- Research by interactive investor, based on a poll of 5,000 pensionsavers conducted by Opinium*, found that people saving for retirement aged 55 (minimum pension age) and under believe they need £350,000 in pension savings (median average) to achieve a comfortable retirement
- This is £320,000 less than the amount suggested in the latest PLSA Retirement Living Standards report: £670,000 for a one-person household over a 20-year retirement (based on mid-point from range in PLSA illustration)
- The median figure among survey respondents is £410,000 less than the suggested by the PLSA amount for a two-person household over a 20-year retirement (£760,000)
- The PLSA’s figures are based on annual income targets of £43,900 and £60,600 for one-person and two-person households, respectively, as set out in the PLSA report
- Many respondents to ii’s survey don’t expect to reach even this lower target – non-retirees aged 41 and over expect to have £150,000 in pension savings at retirement (median average). Worryingly, the median expectation remains the same for those approaching retirement, in the 56–65 age group
Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The latest PLSA Retirement Living Standards data underscores a simple but important truth: the cost of maintaining a decent standard of living in retirement doesn’t stay still.
“It’s encouraging that the estimated minimum amount needed for retirement has decreased. However, this figure would only support a very basic standard of living. The cost of a more comfortable retirement continues to rise. Inflation steadily erodes purchasing power, meaning retirees need more money each year just to maintain their lifestyle. On top of that, life can be unpredictable – unexpected expenses, especially those related to health, can arise and hit harder in some years than others.
“All of this underscores the importance of taking pension savings seriously. Making regular contributions, and starting as early as possible, can make a significant difference in ensuring a more secure and comfortable retirement. The earlier you begin planning and saving, the better prepared you’ll be to enjoy your golden years with peace of mind.
“The report offers a useful benchmark for what a ‘comfortable’ or ‘moderate’ retirement might look like in today’s terms. But it’s important to remember that retirement planning isn’t one-size-fits-all. Our own research, based on a sample of 5,000 savers, found that people often believe they need far less to achieve a comfortable retirement – and, worryingly, many don’t expect to reach even that lower target.
“That’s why these standards should be seen as a guide rather than a rulebook. Everyone’s circumstances are different – from housing and health to lifestyle and family support. The key is to plan early, revisit regularly, and build in some flexibility to weather life’s inevitable changes.”
*The survey was conducted among a nationally representative sample of 5,000 by Opinium between April and June 2025.
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