Planning for retirement is one of the most important financial journeys you’ll ever take. But the most important question: How much do you actually need to retire comfortably? Whether you’re just starting out or approaching retirement, understanding your target can help you build a future that matches your ambitions.
What does a ‘comfortable’ retirement look like?
Retirement isn’t one-size-fits-all. Your ideal lifestyle, housing situation, and personal goals all shape your retirement income needs. In the UK, the Pensions and Lifetime Savings Association (PLSA) has developed three ‘retirement living standards’ to help you picture what different levels of retirement might cost:
| Lifestyle | Single person | Couple |
| Minimum | £13,400 | £21,600 |
| Moderate | £31,700 | £43,900 |
| Comfortable | £43,900 | £60,600 |
Source: PLSA Retirement Living Standards, June 2025
How to work out your personal retirement goal
- Picture your retirement lifestyle: Do you want to travel, dine out, or pursue hobbies? Will you have paid off your mortgage? Are you planning for extra healthcare costs?
- Estimate your annual spending: Use your current expenses as a starting point, then adjust for changes (e.g. less commuting, more leisure).
- Factor in inflation: Prices rise over time. If you’re 20 years from retirement, today’s £30,000 could be worth much less.
- Consider all income sources: State Pension (currently up to £11,973 per year), workplace and personal pensions, other savings or investments.
- Calculate the gap: Subtract expected income (State Pension, other pensions) from your target annual spending. The difference is what your savings need to cover.
How much should you save?
The earlier you start, the easier it is to reach your goal. Here’s a quick guide to monthly pension contributions needed for a £20,000 annual retirement income (excluding State Pension):
| Starting age | Monthly contribution |
| 20 | £210 |
| 30 | £320 |
| 40 | £520 |
| 50 | £910 |
The figures in the table are examples only, using growth, retirement date and goal assumptions. You should seek professional advice to identify the level of contributions you may need to make to reach your retirement goals.
The table shows the importance of starting to save for your retirement as early as you can. You could consider using an online pension calculator to personalise your plan or contact us for an in-depth discussion regarding your financial planning.
Staying on track
- Income & Expenditure Tracker: Track your spending and spot opportunities to save more for retirement. Request a copy of our expenditure tracking spreadsheet.
- Online calculators: Try a tool like the Moneyhelper Pension Calculator to work out how much your pension could be worth at retirement. (Moneyhelper is a third party tool and CroweFPUK cannot guarantee the results.)
Final thoughts
Your retirement goal is unique to you. By understanding your desired lifestyle, estimating your spending, and planning early, you can take control of your financial future. If you’re unsure where to start, our team is here to help you navigate your options and build a retirement plan that fits your goals.
Get in touch
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Meet our financial planning team
Our Financial Planning teams are based across our offices in Cheltenham, Kent, London, Manchester, Midlands and Thames Valley.
DisclaimerCrowe Financial Planning UK Limited is authorised and regulated by the Financial Conduct Authority (FCA) to provide independent financial advice. The Financial Conduct Authority does not regulate Trusts, Tax or Estate Planning. |
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As one in five of us will live past our ninetieth birthday, we consider five areas of financial planning that become more critical as we get older.
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