RETIREMENT LIVING STANDARDS
FIND YOUR RETIREMENT LIVING STANDARD
Using independent research carried out by Loughborough University on behalf of the Pensions and Lifetime Savings Association, these living standards provide a benchmark level of annual income to show what life in retirement could look like for you. Take our questionnaire to find out if you’re on track for the retirement lifestyle you want.
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ITEM MINIMUM MODERATE COMFORTABLE Overview £19,900/year
Covers all your basic needs, with some left over for fun
£34,000/year
More financial security and flexibility
£54,500/year
More financial freedom and some luxuries
House DIY maintenance and decorating one room a year Some help with maintenance and decorating each year Replace kitchen and bathroom every 10/15 years Food & drink £96 a week on food (including food away from the home) £127 a week on food (including food away from the home) £238 a week on food (including food away from the home) Transport No car 3-year old car replaced every ten years Two cars, each replaced every five years Holidays & leisure A week and a long weekend in the UK every year 2 weeks in Europe and a long weekend in the UK every year 3 weeks in Europe every year Clothing & personal £460 per person for clothing and footwear each year £791 per person for clothing and footwear each year Up to £1,300 per person for clothing and footwear each year Helping others £20 for each birthday present £34 for each birthday present £56 for each birthday present
| ITEM | MINIMUM | MODERATE | COMFORTABLE |
|---|---|---|---|
| Overview | £12,800/yearCovers all your basic needs, with some left over for fun |
£23,300/yearMore financial security and flexibility |
£37,300/yearMore financial freedom and some luxuries |
| House | DIY maintenance and decorating one room a year | Some help with maintenance and decorating each year | Replace kitchen and bathroom every 10/15 years |
| Food & drink | £54 a week on food (including food away from the home) | £74 a week on food (including food away from the home) | £144 a week on food (including food away from the home) |
| Transport | No car | 3-year old car replaced every ten years | 2-year old car replaced every five years |
| Holidays & leisure | A week and a long weekend in the UK every year | 2 weeks in Europe and a long weekend in the UK every year | 3 weeks in Europe every year |
| Clothing & personal | £580 for clothing and footwear each year | £791 for clothing and footwear each year | £1,500 for clothing and footwear each year |
| Helping others | £20 for each birthday present | £34 for each birthday present | £56 for each birthday present |
*These amounts would fund this lifestyle for people living outside London.
GET TO KNOW THE DETAILS
These examples are based on independent research carried out by Loughborough University, on behalf of the Pensions and Lifetime Savings Association.
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MINIMUM
Covers all your basic needs, with some left over for fun.
A ‘minimum’ lifestyle covers all your basic needs, with some left over for fun and social occasions. You could holiday in the UK, eat out about once a month and do some affordable leisure activities about twice a week.
About three quarters of employees are likely to achieve at least the minimum standard.
MODERATE
More financial security and flexibility.
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.
Around half of employees are projected to have an income between minimum and moderate.
COMFORTABLE
More financial freedom and some luxuries.
A lifestyle that allows you to be more spontaneous with your money. You could have a subscription to a streaming service, regular beauty treatments and two foreign holidays a year.
About one in six employees are projected to have an income between moderate and comfortable.
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MINIMUM
DIY maintenance and decorating one room a year.
Bills and home contents insurance paid, with a budget of £150 a year for DIY decorating and maintenance. Economy brand appliances.
MODERATE
Some help with maintenance and decorating each year.
Boiler servicing and cover plan. £500 a year for decorating and maintenance with some professional help.
COMFORTABLE
Replace kitchen and bathroom every 10/15 years.
Boiler servicing and cover plan. £900 a year for professional decorating and maintenance. Weekly lawn cutting and occasional help with gardening and occasional deep cleaning.
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MINIMUM
Single - £54 a week on food (including food away from the home)
Couple - £96 a week on food (including food away from the home).An inexpensive meal out once a month, as well as one or two cheaper takeaway meals. A £41 or £67 weekly food shop at a mainstream supermarket, with mainly supermarket own label goods. A £4 bottle of wine and standard lager every week.
MODERATE
Single - £74 a week on food (including food away from the home)
Couple - £127 a week on food (including food away from the home).Dine out at a restaurant about once a month, as well as one or two takeaway meals. A £47 or £74 weekly food shop at a mainstream supermarket with 50% branded goods. A £6 bottle of wine and craft beer.
COMFORTABLE
Single - £144 a week on food (including food away from the home)
Couple - £238 a week on food (including food away from the home).Dine out at a restaurant about once a week, as well as the odd takeaway meal each month. £100 per month to treat others to a meal out. A £59 or £94 weekly food shop with 75% branded goods. An £8 bottle of wine and craft beer.
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MINIMUM
No car.
Use your free bus pass for most journeys, and £10 per week per household for taxi journeys. £100 a year for rail journeys for visiting friends and family, using senior rail card.
MODERATE
3-year old car replaced every 10 years.
A single car per household (three years old, replaced every 10 years). One or two longer distance train journeys to visit friends and family. £10 per week per household for taxi journeys.
COMFORTABLE
2-year old car replaced every five years.
A two-year old mid-range SUV or estate replaced every five years. £200 a year for longer distance train journeys to visit friends and family plus a railcard. Taxi journeys of £10 a week per household. For couples, two cars replaced every five years.
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MINIMUM
A week and a long weekend in the UK every year.
About £250 for one seven-night, half-board coach holiday, plus £150 spending money, and a long weekend by rail and B&B accommodation, both in the UK. Basic TV and broadband, plus £5.99 for a streaming service. £20 a week for one or two leisure activities.
MODERATE
2 weeks in Europe and a long weekend in the UK every year.
About £1,100 for a 7-10 night holiday abroad each year and £200 spending money, and a long weekend in the UK with B&B accomodation. £60 monthly TV and internet subscription, plus £5.99 for a streaming service, and two weekly activities (e.g. cinema, swimming) totalling £35 per week.
COMFORTABLE
3 weeks in Europe every year.
A summer and winter 3* or 4* half board hotel break abroad, for three weeks in total, for around £2,500 a year. Three weekly activities (e.g. cinema, gym class) totalling £50 per week. £60 monthly TV and internet subscription, plus a smart speaker and £5.99 for a streaming service.
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MINIMUM
Up to £580 for clothing and footwear each year.
£350 a year on clothes and £110 for shoes. £25 dry haircut every six weeks, NHS dental care and mid-range glasses.
MODERATE
Up to £791 for clothing and footwear each year. £791 for couples.
£500 a year for clothes and £250 for footwear. £35 cut and blow dry and £10 colour every six weeks. NHS dental care and mid-range glasses.
COMFORTABLE
Up to £1,500 for clothing and footwear each year. Up to £1,300 per person for couples.
£1,000 a year for clothes and £500 a year for shoes. £90 cut and colour every six weeks. NHS dental care and mid-range glasses.
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MINIMUM
£20 for each birthday present.
About £10 each for 12 birthday and 12 Christmas gifts a year.
MODERATE
£34 for each birthday present.
About £30 for 12 birthday and 12 Christmas gifts plus £150 a year for helping the family.
COMFORTABLE
£56 for each birthday present.
About £50 each for individual birthday and Christmas gifts, plus £1,000 a year for helping the family.
PICTURE YOUR FUTURE AND WHAT IT COULD COST
The examples below are based on information provided by the Pensions and Lifetime Savings Association, based on independent research carried out by Loughborough University. Retirement income figures shown assume a 4.8% annual annuity from every £1 of pot, accessed at state pension age.
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Working already but has no pension savings.
Isaac is saving into a pension through Automatic Enrolment. A total of 8% of his salary is going into his DC pension. He is likely to have a pension income above the minimum standard, providing both financial security and choices.
Isaac’s annual contribution: £880
Tax relief: £220
Employer Contribution: £660Saving 8%,and a full state pension, would give Isaac an annual retirement net income of around: £15,300*
* This assumes Isaac's salary rises in line with inflation. If he gets promoted, or finds a job with a better salary, and continues to save for his retirement, he can expect a better standard of living. The retirement income figure includes new state pension for 2023-24 of £10,600. Figures are provided for illustrative purposes.
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Alex has no previous pension savings.
Alex is saving into a pension through Automatic Enrolment - he saves at the default amount - so a total of 8% is going into his DC pension scheme. He is on track to be above the minimum standard and well on the way towards the moderate standard.
Alex’s annual contribution: £1,134
Tax relief: £283
Employer Contribution: £851Saving 8%, and a full state pension, would give Alex an annual retirement net income of around: £16,900*
But if Alex wants to achieve even more – like a foreign holiday – he could increase the total contributions into his pension to 12%. This would be an additional £95 per month which could be met in full or in part by his employer and Government tax relief.
Saving 12%, and a full state pension, would give Alex an annual retirement net income of around: £19,000*
* This assumes Alex's salary rises in line with inflation. If he gets promoted, or finds a job with a better salary, and continues to save for his retirement, he can expect a better standard of living. The retirement income figure includes new state pension for 2023-24 of £10,600. Figures are provided for illustrative purposes.
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Rosa has previous DC pension savings of £8,500.
Rosa is saving into a pension through Automatic Enrolment. She saves at the default amount - so a total of 8% is going into her DC pension scheme and she has £8,500 in her pot so far. If she stays at the same level of contributions, she is likely to get a net income in retirement from her state and private pensions that will give her a living standard on the way towards the moderate.
Rosa’s annual contribution: £1,276
Tax relief: £319
Employer Contribution: £957Saving 8%, and a full state pension, would give Rosa an annual retirement net income of around: £18,400*
If Rosa increased total contributions into her pension to 12% she could get much closer to the moderate standard and enjoy a higher weekly food budget, more eating out and holidays abroad. Saving 12% means an additional £106 per month - which could be met in full or in part by her employer and Government tax relief.
Saving 12%, and a full state pension, would give Rosa an annual retirement net income of around: £21,700*
* This assumes Roas's salary rises in line with inflation. If she gets promoted, or finds a job with a better salary, and continues to save for her retirement, she can expect a better standard of living. The retirement income figure includes new state pension for 2023-24 of £10,600. Figures are provided for illustrative purposes.
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Jerome has previous DC pension savings of £34,000.
Jerome, who started saving early in his career, earns a high salary and can hope to achieve a moderate standard. Jerome currently has a total of 8% going into his DC pension scheme.
Jerome’s annual contribution: £1,794
Tax relief: £449
Employer Contribution: £1,346Saving 8%,and a full state pension, would give Jerome an annual retirement net income of around: £21,700*
If Jerome increased the total contributions to 12% of his salary, then in addition to the moderate standard he could also have some parts of the comfortable standard in retirement – such as a newer car or a more expensive subscription package. Moving up to 12% means increasing contributions by £150 per month - which could be met in full or in part by his employer and Government tax relief.
Saving 12%, and a full state pension, would give Jerome an annual retirement net income of around: £25,700*
* This assumes Jerome's salary rises in line with inflation. If he gets promoted, or finds a job with a better salary, and continues to save for his retirement, he can expect a better standard of living. The retirement income figure includes new state pension for 2023-24 of £10,600. Figures are provided for illustrative purposes.
Sabrina is starting her first job and has no previous pension savings.
A total of 8% of her salary each month is going into her DC pension, which is the amount many people save under Automatic Enrolment. This is likely to get Sabrina beyond the minimum standard She’d have the security of knowing all her bills were covered, and could afford some leisure or social activities. She could also enjoy some of the benefits of a moderate standard, like more money to spend on gifts or a TV subscription package.
Sabrina’s annual contribution: £673
Tax relief: £168
Employer Contribution: £505
Saving 8%, and a full state pension, would give Sabrina an annual retirement net income of around: £15,300*
* This assumes Sabrina’s salary rises in line with inflation. If she gets promoted, or finds a job with a better salary, and continues to save for her retirement, she can expect a better standard of living. The retirement income figure includes new state pension for 2023-24 of £10,600. Figures are provided for illustrative purposes.
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Esther has previous DB pension of £2,000 and no DC pension. She spent 4 years out of the workforce. Idris has previous DC pension savings of £36,166 and spent 1 year out of the workforce.
Esther and Idris already have some pension savings built up. They currently have a total of 8% of their salaries going into their current DC pensions. They are likely to attain a moderate retirement living standard.
Esther’s annual contribution: £1,200
Tax relief: £300
Employer Contribution: £900Idris’ annual contribution: £1,311
Tax relief: £328
Employer Contribution: £983Saving 8%, and a full state pension, would give Esther and Idris an annual retirement net income of: £35,600*
Increasing the total contributions into each of their pensions to 12%, would bring them some elements of the comfortable living standard. That could give them the freedom to spend £50 a month helping grandchildren or other family members such as by paying for hobbies like swimming lessons or horse riding. They could also help with the cost of school trips, uniforms and other such expenses. Moving up to 12% means increasing total contributions by £100 into Esther’s pension and £109 into Idris’. This could be met in full or in part by their employers and Government tax relief.
Saving 12%, and a full state pension, would give Esther and Idris an annual retirement net income of: £40,300*
* This assumes salaries shown rise in line with inflation. If they get promoted, or find jobs with better salaries, and continue to save for their retirement, they can expect a better standard of living. The retirement income figure includes new state pension for 2023-24 of £10,600. Figures are provided for illustrative purposes.
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Josh has a previous DC pension of £131,751 and David has a previous DC pension of £149,000.
As a higher-income couple in middle age, with a decent amount already saved and 8% of their salaries going into each of their DC pension pots, Josh and David are likely to get well above the moderate standard, reaching around half way towards the comfortable living standard.
Josh’s annual contribution: £1,716
Tax relief: £1,144
Employer Contribution: £1,716David’s annual contribution: £1,800
Tax relief: £450
Employer Contribution: £1,350Saving 8%, and a full state pension, would give Josh & David an annual retirement net income of: £46,800*
If their total contributions increase by another 4% of their salaries to 12%, this could result in moving closer to the comfortable living standard. That could mean they spend £900 a year for decorating and maintenance on their home, replacing their kitchen and bathroom every 15 years. The additional 4% means increasing contributions by £191 into Josh’s pension and £150 into David’s. This could be met in full or in part by their employers and Government tax relief.
Saving 12%, and a full state pension, would give Josh & David an annual retirement net income of: £50,900*
* This assumes salaries shown rise in line with inflation. If they get promoted, or find jobs with better salaries, and continue to save for their retirement, they can expect a better standard of living. The retirement income figure includes new state pension for 2023-24 of £10,600. Figures are provided for illustrative purposes.
Daniel has previous DC pension savings of £9,500 and spent one year out of the workforce. Aisha has previous DC pension savings of £30,500.
Daniel and Aisha, a higher-income young couple are on track to exceed the moderate living standard. A total of 8% of their salaries goes into each of their DC pensions, so they are likely to have a combined pension income of £39,800 per year – comfortably exceeding the moderate standard, but with some way to go to the comfortable standard.
Daniel’s annual contribution: £1,428
Tax relief: £357
Employer Contribution: £1,071
Aisha’s annual contribution: £1,610
Tax relief: £402
Employer Contribution: £1,207
Saving 8%, and a full state pension, would give Daniel and Aisha an annual retirement net income of around: £39,800*
Increasing the total contributions to 12% would boost their retirement income and get them closer to the comfortable living standard. They’d have much more to spend on food, drink and gifts at Christmas and could get help with cleaning, gardening and DIY. Raising contributions to 12% would mean an extra £119 per month would need to be paid into Daniel’s pension, and £134 per month into Aisha’s. This could be met in full or in part by their employers and Government tax relief.
Saving 12%, and a full state pension, would give Daniel and Aisha an annual retirement net income of around: £47,100*
* This assumes salaries shown rise in line with inflation. If they get promoted, or find jobs with better salaries, and continue to save for their retirement, they can expect a better standard of living. The retirement income figure includes new state pension for 2023-24 of £10,600. Figures are provided for illustrative purposes.