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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
View transcript
Ever wonder what life might be like when you stop working?
Maybe it's travelling the world, ticking off those bucket list moments, or finally getting round to all those neglected hobbies and passions.
Or maybe it's simply relaxing at home.
But have you thought about how much you might spend in retirement?
It may not be something you've considered before, but understanding how much you might need to support the lifestyle you'd like could help you plan for your future.
That's where the Retirement Living Standards can help.
The Retirement Living Standards provide estimated yearly spending figures based on independent research by Loughborough University. They're designed to help people understand how much they might spend each year in retirement.
The standards are split into three different levels.
Minimum
First up is the Minimum Standard.
This covers most of your basic needs, with a little left over for fun.
That includes essentials such as food, household bills, transport and clothing, plus extras like a one week self catering holiday each year and eating out once a month.
The estimated spending needed for this lifestyle is £13,900 a year for one person.
For a two person household, this increases to £22,500 a year, reflecting the fact that living costs and bills can be shared.
Moderate
The next level is the Moderate Standard.
This allows for spending of £32,700 a year for one person, or £45,400 a year for a two person household.
This standard includes a little more for food, bills and clothing, as well as a three year old small car that's replaced every seven years.
It also offers greater financial security and flexibility, along with more leisure opportunities, such as a two week three star all inclusive holiday in the Mediterranean, a long weekend break in the UK, and a takeaway once a week.
Comfortable
To enjoy a more comfortable retirement, you may need to spend more.
The Retirement Living Standards suggest that the Comfortable Standard requires £45,400 a year for one person, or £62,700 a year for a two person household.
This standard gives you the flexibility to be more spontaneous and enjoy a wider range of social and leisure activities, including a three or four star half board holiday, several long weekends away in the UK, extra day trips, and eating out more frequently.
It also includes some of the little luxuries you might not have considered, such as running a car and replacing it every five years, additional TV subscriptions, and more money set aside for home maintenance and repairs.
Now that you know what you might spend in retirement, watch Part 2 to find out how much you might need to save to achieve each Retirement Living Standard.
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 £12,547 a year.
| Lifestyle level | Pension pot goal |
| Minimum | £50,100 |
| Moderate | £722,000 |
| Comfortable | £1,210,000 |
Figures correct as at June 2026. Based on a one person household and calculated using our 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 | £121 |
| Moderate | £577 | £808 | £1,752 |
| Comfortable |
£965 |
£1,351 | £2,931 |
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.
View transcript
Once you've learned about the Retirement Living Standards and how much you might spend in retirement, it can be useful to explore how much you'll need to save to achieve them.
Minimum Standard
To meet the Minimum Retirement Living Standard, you would need roughly £50,100 in your pension if you're starting with no pension savings and plan to retire at age 68.
The combined monthly contribution from you and your employer would need to be approximately:
· £40 per month if you start saving at age 22
· £56 per month if you start saving at age 30
· £121 per month if you start saving at age 45
These figures are based on a one person household and assume you qualify for the full State Pension, currently £12,547 per year.
Moderate Standard
To achieve the Moderate Retirement Living Standard, you would need around £722,000 in your pension.
Using the same assumptions, the combined monthly contribution from you and your employer would need to be approximately:
· £577 per month if you start saving at age 22
· £808 per month if you start saving at age 30
· £1,752 per month if you start saving at age 45
Comfortable Standard
To reach the Comfortable Retirement Living Standard, you would need around £1,210,000 in your pension.
The total combined monthly contribution paid into your pension would need to be approximately:
· £965 per month if you start saving at age 22
· £1,351 per month if you start saving at age 30
· £2,931 per month if you start saving at age 45
Important Information
These figures have been calculated allowing for 2% inflation each year, so they show the value of what you could have in today's money.
Remember, these figures include both your employer's contributions and the tax relief added to your pension contributions, which means the amount deducted from your pay each month will be lower than the figures shown.
The good news is that our pension calculator can help you work out how much you may need to save.
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.
