How much does it cost to retire in the UK?
Updated 19 October 2026. Figures checked against official sources on 19 October 2026.
Pensions UK's Retirement Living Standards put a yearly cost on three ways of living in retirement, after tax and without rent or a mortgage. Our What will you spend? page breaks it down line by line, from council tax to holidays, with a source for every figure.
Worked example
From 88, your income falls short of the £32,700 a year you want.
- Age now
- 60
- Retire at
- 66
- Pots
- £355,000
- Take-home wanted
- £32,700 a year
- Plan until
- 95
The three levels
| Level | One person, a year | Two people, a year |
|---|---|---|
| Basic (Minimum) | £13,900 | £22,500 |
| Middle (Moderate) | £32,700 | £45,400 |
| Comfortable | £45,400 | £62,700 |
- Basic: Covers the basics, with a little left over for fun. No car, a week's UK holiday.
- Middle: A small car, a holiday abroad each year, eating out a couple of times a month.
- Comfortable: More holidays and breaks, eating out often, and more help for family.
These are what you spend, so they're the take-home income you need, after tax.
What the state pension covers
The full new state pension is £12,548 a year. That's most of Basic for one person, and less than half of Middle. The rest comes from pensions, savings or work.
A worked example
Someone aged 60 wanting £32,700 a year (Middle, one person) from 66, with £355,000 in a pension and cash today. From 88, your income falls short of the £32,700 a year you want. In 28 out of 100 market tests it lasts to 95.
Your own figures
Your bills may be very different. You can work out what you'll spend, a week, a month or a year at a time, and send the total to the calculator. Try the calculator with your own figures.
Questions people ask
How much do I need a year to retire comfortably in the UK?
Pensions UK's Comfortable level is £45,400 a year for one person and £62,700 for two, after tax and without rent or a mortgage.
What is a moderate retirement income in the UK?
Pensions UK's Moderate level, which we call Middle, is £32,700 a year for one person and £45,400 for two.
Does the state pension cover the minimum?
Not quite on its own. The full new state pension is £12,548 a year, against £13,900 for Pensions UK's Minimum level for one person.
Sources
Rates and rules were checked against these on 19 October 2026. Worked-example figures come from the calculator, using 2026/27 tax rules.