Will the future we want be the future we're able to get?
Key facts
The Pension and Lifetime Savings Association Retirement Living Standards have been developed to help us to picture what kind of lifestyle we could have in retirement.
A 'moderate' lifestyle will require £31,300 per year for an individual or £43,100 for a couple.
A ‘moderate’ lifestyle provides more financial security and more flexibility. You could have one foreign holiday a year and eat out a few times a month. You’d have the opportunity to do more of the things you want to do.
Reading time
5 mins
What you need
An understanding of the income your pension will provide in retirement
Key themes at a glance
State pension
The full state pension for 2024-25 is £11,500 per year
Moderate lifestyle
...requires £31,300 per year for an individual and £43,100 for a couple
Private pension
You need a pension fund of about £300K -£500K for the moderate lifestyle
Moderate lifestyle
A moderate standard of living in the UK today includes, but is more than just, food, clothes, and shelter. It is about having what you need in order to have the opportunities and choices necessary to participate in society.
Here's a list of costs you need to consider in retirement and the Living Standards estimate for each:
House - some help with maintenance and decorating each year.
Household bills (e.g. water, council tax, insurance, electricity)
Telephone bills (landline and mobile) and line rental
Food - around £55 a week on groceries, £30 a week on food out of the home, £10 a week on takeaways, £100 a month to take others out for a monthly meal.
Eating out budget
Groceries
Beer and wine
Transport - 3 year old small car, replaced every 7 years, £20 a month on taxis, £100 per year on rail fares.
Car (if applicable)
Railcard and train travel
Taxis
Holidays & leisure - a fortnight 3* all inclusive holiday in the Med and a long weekend break in the UK. Basic TV and broadband plus two streaming services.
TV, DVD player, laptop, printer, speakers, CDs and stationery supplies
TV license and subscriptions
Internet
Activities
Holidays, spending money and passport
Clothing & personal - up to £1,500 for clothing and footwear each year
Dentist, opticians, podiatry, minor first aid (e.g. plasters, paracetamol)
Helping others - £30 for each birthday and Xmas present, £200 a year charity donation, £1,000 for supporting family members e.g. paying for grandchildren activities.
Gifts for others
Helping others (if applicable)
Charitable donations
What should I do next?
Find out about retirement living standards
Use our quick tool to explore how your pension pot size and age affects the type of lifestyle you can afford in retirement. You don't have to provide any personal info.
