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Take the guesswork out of retirement planning – discover how much you’ll need for the lifestyle you want. Your guide to smarter pension planning.
What are the Retirement Living Standards?
The Retirement Living Standards (RLS) are designed to help you understand the costs associated with different kinds of lifestyles when you retire. Developed by Pensions UK and based on independent research by Loughborough University, the RLS give clear, realistic targets for retirement spending – whether you’re aiming for just the essentials or a life with a few more luxuries. It’s all about giving you confidence and clarity as you plan for your future.
How they can help you plan
Unsure how much to save, or what retirement will really cost? The RLS can take away some of the uncertainty. By showing you estimated annual costs for three distinct lifestyles – minimum, moderate and comfortable – you can set savings goals that fit your aspirations. They’re practical, straightforward, and tailored for real people. Providing a clear guide to help you plan for the retirement you want.
How much will you need?
Everyone’s vision of retirement is different. The RLS break it down into three levels, so you can see what’s possible and decide where you’d like to be:
- Minimum: Covers your needs, with a little left over for fun
- Moderate: More security, flexibility, and a few treats
- Comfortable: Greater freedom and the chance to enjoy some luxuries.
The table below shows the yearly spend you may need for each lifestyle, plus a breakdown of typical costs.
Yearly spend and lifestyle breakdown
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One per household
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Two person household
How much do you need in your pension pot?
Now that you know what the Retirement Living Standards are, you can use them as a starting point for planning how much you’ll need at retirement. These examples assume:
• You’re starting with no pension savings
• You plan to retire at age 68
• You’ll be eligible for the full State Pension, which currently stands at £11,973 a year.
| Lifestyle level | Pension pot goal |
| Minimum | £52,000 |
| Moderate | £703,000 |
| Comfortable | £1,150,000 |
These are estimated figures for a one-person household, calculated using the Royal London pension calculator. If you’re sharing retirement costs with a partner, you may need to save less.
How much should you aim to save each month?
The monthly amount you need to save depends on your age and your chosen retirement lifestyle.
Contributions include both yours and your employer’s.
| Lifestyle level | Start age 22 | Start age 30 | Start age 45 |
| Minimum | £40 | £56 | £120 |
| Moderate | £560 | £780 | £1,710 |
| Comfortable |
£925 |
£1,290 | £2,800 |
These figures are for illustration only - actual requirements may vary depending on investment performance, inflation and charges. The figures factor in investment growth of 5% per year, inflation of 2% a year and management fees of 0.75%.
At first glance, these monthly amounts may feel high – particularly if you’re in your early career. It’s important to remember that the figures shown are not just your own pension contributions, but also include any tax relief on your contribution, and employer contributions too. So the amount deducted from your monthly pay will be less than what's shown.
It's important to budget for everyday living costs, major life events and other savings goals too. The good news is that pension savings don’t have to be static – as your salary increases over time, even small rises in contributions can make a big difference and help you move closer to the moderate or comfortable retirement levels.
Take control of your future
Checking your pension forecast regularly can help you see what you might get in retirement and understand any adjustments you may need to make.
Here are a few steps you can follow to take control and start planning:
- Check your state pension forecast today at gov.uk/check-state-pension.
- Check the value of all of your current pension savings: You can use our mobile app to check your plan value with us. To see how much you might have, select ‘Your future outlook’.
- Visit royallondon.com/pension-calculator to understand out if you’re on track for the lifestyle you want in retirement or if you need to make any changes.
- Pay in more if you can: If you’re off track, consider increasing your pension contributions if you can. You can also boost your pension by making a single contribution at any time. Single contributions also benefit from tax relief.
Just remember, you can’t access your pension until at least age 55. This will increase to age 57 from 6 April 2028.
You might choose to speak to a financial adviser. If you don’t have one, we have information to help you find one at royallondon.com/find-a-financial-adviser. Advisers may charge for their services – though they should agree any fees with you upfront.
By following these steps, you can take control of your retirement planning and work towards the lifestyle you want.
Figures shown are estimates and not financial advice. For personalised guidance, speak to a financial adviser. Investment values can go down as well as up. You may get back less than you pay in.
