Retirement Goals
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How Much Do You Need to Retire in the UK?

The Pension and Lifetime Savings Association (PLSA) defines three retirement living standards: Minimum (£14,400/yr single), Moderate (£31,300/yr), and Comfortable (£43,100/yr). These figures assume you receive the full State Pension and reflect 2024/25 prices.

The 25x Rule

A widely used retirement planning rule is to multiply your desired annual income by 25. This is based on a 4% sustainable withdrawal rate — taking 4% of your pot each year is generally considered safe enough to last 30 years, based on historical market returns.

State Pension Reduces How Much You Need

The full new State Pension (£11,502/year in 2025/26) significantly reduces how much you need in a private pension. If you want £25,000/year and receive the full State Pension, your private pension only needs to provide £13,498/year — requiring a pot of around £337,000 rather than £625,000.