A single person’s 20-year pension pot will need to be \u00a3670,000 in order to be comfortable, the PSLA said – again, this is far more than what savers currently believe is required, according to a survey by Interactive Investor.<\/p>\n
Everyone’s lifestyle and budgets are different, as is their interpretation of a comfortable retirement. Some people may feel they simply do not need so much money to live on in retirement.\u00a0<\/p>\n
The PLSA’s figures are based on annual income targets of \u00a343,900 and \u00a360,600 for one-person and two-person households, respectively.<\/p>\n
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Dire: Pension savers in a couple underestimate cost of a comfortable retirement by \u00a3410,000<\/p>\n
According to a survey of more than 5,000 pension savers conducted by Opinium for Interactive Investor, most people do not expect to reach even the lower target of \u00a343,900 per year in pension income.\u00a0<\/p>\n
This is not surprising given many people do not earn enough money to be able to stash away such sizeable sums into a pension each month. Households are also grappling with higher bills and living costs.\u00a0<\/p>\n
Most people aged 41 or over said they expected to have \u00a3150,000 in pension savings at retirement, the Interactive Investor research shows.\u00a0<\/p>\n
Interactive Investor added: ‘Worryingly, the median expectation remains the same for those approaching retirement, in the 56\u201365 age group.’\u00a0<\/p>\n
Myron Jobson, of Interactive Investor, said: ‘The latest PLSA Retirement Living Standards data underscores a simple but important truth: the cost of maintaining a decent standard of living in retirement doesn’t stay still.’<\/p>\n He added: ‘The report offers a useful benchmark for what a ‘comfortable’ or ‘moderate’ retirement might look like in today’s terms.\u00a0<\/p>\n ‘But it’s important to remember that retirement planning isn’t one-size-fits-all. Our own research, based on a sample of 5,000 savers, found that people often believe they need far less to achieve a comfortable retirement \u2013 and, worryingly, many don’t expect to reach even that lower target.<\/p>\n ‘That’s why these standards should be seen as a guide rather than a rulebook. Everyone’s circumstances are different \u2013 from housing and health to lifestyle and family support.\u00a0<\/p>\n ‘The key is to plan early, revisit regularly, and build in some flexibility to weather life’s inevitable changes.’<\/p>\n Starting adding money to a pension from an early age and contributing to one regularly\u00a0can make a significant difference when it comes to pension saving.\u00a0<\/p>\n Separate figures from Interactive Investor this week suggest single workers need to save \u00a3290 in a pension each month from the age of\u00a0 22 to achieve a moderate retirement with a \u00a3330,000 pension pot.<\/p>\n In theory, to achieve the same standard of living in retirement, a single person would have to start saving 16 years earlier than someone in a couple, this week’s analysis showed.<\/p>\n A member of a couple could potentially achieve a moderate retirement income by saving \u00a3290 from the age 38, achieving a pension pot worth \u00a3165,000 by retirement, Interactive Investor added.\u00a0<\/p>\n Your browser does not support iframes.<\/p>\n How much do you need for a ‘comfortable’ retirement?<\/p>\n Every year, the PSLA\u00a0estimates the level of income required to have a minimum, moderate or comfortable standard of living as a retiree.\u00a0<\/p>\n The report is useful in making people think about what kind of life they want to lead<\/a> after they stop work, how much it is likely to cost and whether their current pension savings are anywhere near on track.<\/p>\n However, an important thing to bear in mind is that people’s lifestyles change as they age.<\/p>\n None of the levels include housing costs, income tax<\/a> or care costs, all of which may be applicable to some people in later life. .\u00a0<\/p>\n Amid lower energy bill costs, this year the PSLA said the cost of a minimum retirement living standard for a one-person household has fallen by \u00a31,000 a year to \u00a313,400.\u00a0<\/p>\n For a minimum retirement, a two-person household would need an annual income of \u00a321,600, down from \u00a322,400 a year previously, according to the PLSA.<\/p>\n For a moderate lifestyle in retirement, the PSLA claimed a single person would need \u00a331,700 per year in pension income, up by \u00a3400 from \u00a331,300 previously, while two people would need \u00a343,900, up by \u00a3800 from \u00a343,100 previously.\u00a0<\/p>\n For a comfortable retirement, encompassing things like theatre trips, two weeks’ holiday in Europe a year or even regular beauty treatments, a single person would need \u00a343,900 in pension income a year, up \u00a3800 on the previous year.<\/p>\n A two-person household would need \u00a360,600 in pension income a year for a comfortable retirement, the PSLA added. This marked a \u00a31,600 increase on \u00a359,000 from the previous year.\u00a0<\/p>\n![](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/636x280.png\")
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