3 June 2026
New calculations* from Quilter, the wealth manager and financial adviser, reveal that a single person now requires a pension pot of £691,000 to achieve a comfortable lifestyle in retirement.
The analysis is based on the latest update to the Pensions UK Retirement Living Standards, which have been refreshed to reflect rising costs across everyday essentials, social activities and hobbies.
Quilter’s calculations suggest that to generate the income required for a comfortable retirement, a single person would need a pension pot of £691,000. This falls to £413,000 for a moderate lifestyle, while the minimum standard can largely be met by the state pension alone, with only limited additional savings required.
For couples, the cost is lower per person due to shared expenses but still requires substantial savings. To reach a comfortable standard of living, each partner would need a pension pot of £389,000, while a moderate lifestyle would require £208,000 each.
The Retirement Living Standards define the level of income needed to achieve minimum, moderate and comfortable lifestyles in retirement. Quilter’s calculations determine the pension pot required to generate these incomes, based on a 6.1% escalating annuity rate for a 66-year-old, assuming no housing costs in retirement.
For a single person, the 2026 figures are as follows:
|
Retirement level |
Annual expenditure |
State pension |
Income needed from pot (gross) |
Pot required (6.1% escalating annuity) |
|
Comfortable |
£45,400 |
£12,548 |
£42,172 |
£691,000 |
|
Moderate |
£32,700 |
£12,548 |
£25,184 |
£413,000 |
|
Minimum |
£13,900 |
£12,548 |
£1,684 |
£28,000 |
For a couple, the new joint pot sizes are:
|
Retirement level |
Annual expenditure |
State pension (combined) |
Income needed from combined pots (gross) |
Pot required per person (6.1% escalating annuity) |
Combined pot required |
|
Comfortable |
£62,700 |
£25,096 |
£47,444 |
£389,000 |
£778,000 |
|
Moderate |
£45,400 |
£25,096 |
£25,368 |
£208,000 |
£416,000 |
|
Minimum |
£22,500 |
£25,096 |
£- |
£- |
£- |
Jon Greer, head of retirement policy at Quilter, comments:
“With the annual cost of achieving a comfortable lifestyle in retirement on the rise, the pension pot required to afford it has now reached £691,000. The state pension still forms a crucial foundation and goes a long way towards helping people achieve a minimum standard of living, however stepping up to a moderate or comfortable lifestyle requires significant pension savings. While most people are on track to cover the basics, far fewer are likely to achieve the level of flexibility and financial security many would aspire to.
“These figures also assume people are mortgage-free, which will become less common for future generations who are taking out much larger mortgages with far longer terms. Factoring in housing costs could push the required income higher still, making early planning and regular reviews even more important.
“The current policy landscape, including pensions becoming subject to inheritance tax from April 2027, changes to salary sacrifice, and the never-ending threat of further pension tax changes at each budget, have made things increasingly confusing for savers. This may make pensions seem less attractive, but pensions should still be viewed as an incredibly efficient way to save for retirement and these figures bring into sharp focus just how important it is that people take ownership of their savings.
“Assessing both how much you are saving and how you structure and use your pension and other assets is vital. Seeking professional financial advice can help ensure your savings are working as efficiently as possible and that you are on track to achieve the retirement you want.”
