Retirement Living Standards
Estimated financial needs associated with various retirement lifestyles.
Note: Estimated financial needs associated with various retirement lifestyles from the Pensions and Lifetime Savings Association (PLSA)
Amount required for a 'minimum' living standard in retirement
Single person
£14,400
Couple
£22,400
Source
Amount required for a 'moderate' living standard in retirement
Single person
£31,300
Couple
£43,100
Source
Amount required for a 'comfortable' standard of living in retirement
Single person
£43,100
Couple
£59,000
Source
Undersaving in the UK
Number of adults who were not retired but not saving into a pension in 2020
9.6 million
Source
Number of people of working age who are undersaving for retirement
12.5 million
Source
Proportion and number of working age people undersaving for retirement, measured against the PLSA minimum retirement living standard
12% - 4.1 million
Source
Proportion and number of working age people who are undersaving relative to the 'moderate' retirement living standard
51% - 17.7 million
Source
Proportion and number of working age people who are undersaving relative to the 'comfortable' retirement living standard
88% - 30.4 million
Source
Proportion of workers in the lowest income band (<£12,500) who do not meet the required threshold
34%
Source
Single vs couple undersaving
Target replacement rates
Proportion of earnings that a lower earner would need as income in retirement to ensure a similar lifestyle
80%
Source
Proportion of earnings that a median earner would need as income in retirement to ensure a similar lifestyle
60 to 66%
Source
Proportion of earnings that a higher earner would need as income in retirement to ensure a similar lifestyle
50%
Source
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