How much do you need to retire?
Pensions UK works out what retirement costs each year, after tax, not counting rent or a mortgage. These figures are for outside London (June 2026).
| One person | A couple | |
|---|---|---|
| Minimum: covers the basics | £13,900 | £22,500 |
| Moderate: more security and choice | £32,700 | £45,400 |
| Comfortable: holidays and treats | £45,400 | £62,700 |
The State Pension
| Full new State Pension (from April 2026) | £241.30 a week, about £12,550 a year |
|---|---|
| Years of National Insurance for the full amount | 35 |
| Years needed to get anything | 10 |
| State Pension age | 66, rising to 67 between 2026 and 2028 |
Under current law, the State Pension age rises to 68 between 2044 and 2046, for people born after 5 April 1977. Your forecast on GOV.UK shows your exact age and amount.
Taking money from your pension
- 25% can be tax-free, up to £268,275. You can take it as a lump sum, or a bit with each payment.
- The rest is taxed as income, along with your State Pension.
- The earliest you can usually take it is 55, rising to 57 from April 2028.
Not sure you’re on track?
A pension adviser can check your fees, investments and how much to pay in. Your first conversation is often free.
Find a pension adviserWorked example
Priya has £50,000 in pension savings and pays in £400 a month, including her employer’s share. She gets the full State Pension at 68.
| Pension savings at 68 | £293,334 |
|---|---|
| Income from her savings, until age 90 | £17,496 a year |
| State Pension | £12,548 a year |
| Income tax | −£2,620 a year |
| Income after tax | £27,424 a year, about £2,285 a month |
That’s above the minimum but short of a moderate retirement. Paying in about £215 more a month would close the gap.
Questions
Why is everything in today’s prices?
£30,000 in 25 years won’t buy what it does now. Showing everything in today’s prices lets you compare your income with what things cost now.
What if I have a final salary pension?
Add the yearly amount from your statement under More options. We assume it starts when you retire and rises with inflation.
What if my pension runs out?
This calculator takes money out so your savings last until 90. An annuity pays a fixed income for life however long you live, but the amount is set when you buy it.
What does this calculator leave out?
Scottish tax rates, your partner’s pensions, investment ups and downs, and charges that differ from the figure you choose. It’s a guide, not financial advice.