New data reveals that the cost of achieving your desired lifestyle in retirement has jumped once again, meaning millions of UK savers may need to evaluate how much they are regularly setting aside. According to the latest Retirement Living Standards update from the Pensions and Lifetime Savings Association (PLSA), the amount needed for both a 'moderate' and 'comfortable' retirement has risen significantly. The figures reflect rising household costs, including food, transport and social activities. Worryingly, analysis shows that only 9% of working-age people are currently on target for a 'comfortable' retirement. In this article
What are the Retirement Living Standards?
The Pensions and Lifetime Savings Association (PLSA) regularly updates its Retirement Living Standards to give pension savers a clear, relatable picture of the costs of different retirement lifestyles. These standards act as a helpful national benchmark to show how much annual after-tax income you might need to support three different types of retirement.
The latest figures for 2026 outline the minimum income required for each type of retirement level, summarised below:
| Single | Couple | |
| Minimum | £13,900 | £22,500 |
| Moderate | £32,700 | £45,400 |
| Comfortable | £45,400 | £62,700 |
What is a "minimum" retirement?
An income of at least £13,900 for a single person or £22,500 for a couple is required for a minimum retirement, according to the PLSA. The minimum standard covers the cost of all your basic needs, with a small amount left over for fun. It assumes you will not own a car, relying instead on a free bus pass, along with a small budget for a few rail fares and taxi trips.
It also assumes a self-catering or half-board holiday within the UK, eating out once a month, and participating in affordable leisure activities once or twice a week. The figures and assumptions are similar for a couple. This is, essentially, a frugal retirement lifestyle.
What is a "moderate" retirement?
An income of at least £32,700 for a single person or £45,400 for a couple is required for a moderate standard of living in retirement, according to the PLSA. The moderate retirement lifestyle is designed to provide greater financial security and flexibility. It assumes you will spend around £59 a week on groceries, alongside a weekly takeaway and eating out a couple of times a month. You might also have a three-year-old small car that you replace every seven years, as well as an allowance for taxis and train travel.
You will be able to afford a fortnight in the Mediterranean at a 3-star all-inclusive hotel, plus a long weekend break in the UK. You can also budget up to £1,500 per year for clothing and footwear. The moderate retirement lifestyle allows retirees to spend more on gifts, allocating £30 for birthdays, as well as up to £1,000 for supporting family members, such as paying for activities or treats for grandchildren.
What is a "comfortable" retirement?
A comfortable retirement, as defined by the PLSA, requires at least £45,400 per year for a single person and £62,700 per year for a couple. This lifestyle is designed to provide even more financial freedom and some luxuries. It assumes you will spend around £78 a week on the food shop. You will also be able to spend more on food outside the home, order regular takeaways, and treat others to a meal each month.
Much like the moderate lifestyle, you will be able to afford a three-year-old small car, but you will be able to replace it every five years. The "comfortable" standard includes extra-long weekends away in the UK, day trips, and a larger budget for social activities, such as an extensive bundled TV and entertainment subscription. Larger allowances are also provided for property maintenance, alongside the £1,000 allocation for supporting family members.
Are you saving enough?
While the minimum standard is achievable for a couple where both partners receive the full State Pension, it falls short for single pensioners. The full State Pension provides a crucial foundation, but to achieve a moderate or comfortable lifestyle, you will need significant personal pension savings in order to bridge the gap. The latest analysis highlights a concerning trend across the UK where around 73% of working-age individuals are undersaving for a moderate retirement, and 91% are falling short of the amount needed for a comfortable standard of living.
How to boost your retirement savings
If you are worried that your pension pot might not stretch far enough, there are practical steps you can take today to improve your financial outlook:
- Check your current pension - Find out exactly how much you have already saved across all your workplace and private pensions.
- Understand your target - Use online pension calculators to estimate the size of the pot you will need to fund your desired lifestyle.
- Consider increasing your contributions - Even small increases in your monthly pension contributions can grow significantly over time, thanks to tax relief and compound growth.
- Track down lost pensions - If you have changed jobs frequently, you may have old pension pots that you have forgotten about.
- Seek guidance - If you are unsure about your options, consider speaking to an independent financial adviser who can help you build a personalised retirement strategy.
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