How much income do you need to retire?
4 mins
Make your retirement dreams a reality
Get help and guidance with our handy resources to help you prepare and adjust for life in retirement.
Explore retirement
Retirement overview
Retirement planning tools
Withdrawal and retirement income
Retirement checklists
Your retirement and PensionBee
Helping you prepare for life in retirement
We all have a different idea of the lifestyle we hope to enjoy in retirement. From more time on holiday at home or abroad to quality time with the family. You may have to think about long-term care for a loved one or want to help your children or grandchildren financially. Whatever your goals or needs, we're here to help you plan for your life in retirement.
You’ll learn about how tax affects your pension, the different ways you can take your pension as an income, how your retirement may impact your family and much more. We also have a handy set of retirement checklists and tools including our Pension Drawdown Calculator and Pension Calculator to help you work out how much income you may need in retirement.
Not sure where to begin? Get a jumpstart on retirement planning below.
How much do I need to retire?
The Pensions and Lifetime Savings Association (PLSA) offers a helpful guide, the Retirement Living Standards, that gives you an idea of what your life in retirement might cost per year at three different levels: 'minimum', 'moderate' and 'comfortable' for both single retirees and those in a couple.
Minimum standard
Covers all your basic needs, with a little leftover for fun
Single
£14,400 a year
Couple
£22,400 a year
Moderate standard
Offers more financial security and flexibility
Single
£31,300 a year
Couple
£43,100 a year
Comfortable standard
More financial freedom and some luxuries
Single
£43,100 a year
Couple
£59,000 a year
'Minimum' standard
Meets basic needs, with a little leftover for fun
Single
£14,400 a year
Couple
£22,400 a year
'Moderate' standard
Offers more financial security and flexibility
Single
£31,300 a year
Couple
£43,100 a year
'Comfortable' standard
More financial freedom and some luxuries
Single
£43,100 a year
Couple
£59,000 a year
Learn more about how much you need for retirement:
Retirement planning essentials
We understand there is a lot to think about when it comes to your retirement. If you’re not sure where to start, you can read, watch or listen to some of the essential things you may want to consider to help you plan for retirement.
What kind of retirement do you want?
At PensionBee we want everybody to look forward to a happy retirement. But one person’s idea of retirement may look very different from another’s, so it's helpful to start by thinking about the kind of lifestyle you hope to look forward to, to help you plan towards it.
How much should you save for retirement?
4 mins
Getting your finances in order
To have the kind of lifestyle you hope for in retirement it's important to understand your sources of income and how much you may already have set aside.
Tracking down your pensions
You may have pension pots you’re not even aware of, particularly, if you’ve ever changed jobs but haven’t transferred your pension with it. Thankfully, there are ways to help you find and transfer lost pensions.
Tracking down your pensions
You may have pension pots you’re not even aware of, particularly, if you’ve ever changed jobs but haven’t transferred your pension with it. Thankfully, there are ways to help you find and transfer lost pensions.
Combining your pension pots
How to combine, contribute and withdraw with PensionBee
4 mins
Combining your pensions into one pot has a number of benefits, from making it easier to manage your pensions to the potential to reduce ongoing pension fees. Read about whether consolidating your pensions is right for you, and find out how to combine your pensions with PensionBee.
Understand how tax affects your retirement income
Tax and pension contributions
Contributing to your pension enables you to grow your pension pot as you save for a happy retirement. But what many people aren’t aware of is the tax benefit that comes from topping up their pension. Most UK taxpayers get tax relief on their personal pension contributions, which means that the government effectively adds money to your pension pot. Basic rate taxpayers usually get a 25% tax top up; HMRC adds £25 for every £100 you pay into your pension.
At PensionBee, we’ll automatically claim this from HMRC for all eligible contributions. Higher and additional rate taxpayers can usually claim back extra pension tax relief through Self-Assessment.
Learn more about pension contributions.
Tax and withdrawing
Once you reach the age of 55 (rising to 57 in 2028), you’ll be able to take up to 25% of your pension tax-free. The remaining 75% will be subject to income tax. The amount of tax you’ll pay will depend on your total income for the year, as well as your tax rate.
How does pension drawdown tax work?
3 mins
Tax whilst you’re still working
The amount of tax you’re required to pay each year is calculated based on your total taxable annual income. Sources of income may include employment, pensions, savings and property. Whilst you won’t have to pay tax on the first 25% of your pension pot, how you withdraw the remaining 75% of your pension will determine whether you pay tax on this portion now or later.
How much tax will I pay on my pension if I'm still working?
5 mins
Managing and adjusting for life in retirement
The next chapter in life after you retire may present exciting opportunities as well as some challenges. Your retirement may involve lots of change in addition to stopping work. You may finally get to realise long-held ambitions, you may be spending more time looking after a loved one or you may be finding it challenging to relax and adjust to the extra time you have. As your circumstances change you may need to adjust how you use your retirement income. Here are some other things you may need to think about to help you adjust to life in retirement.
Working in retirement
Once you hit retirement age that doesn’t mean you necessarily have to stop working. Retirement is about how you choose to spend your time, which may even include continuing to work in some form. Some people eligible to start taking their pension may choose to start a business in retirement using their pension pot.
Leaving pensions to loved ones
We recognise it isn’t an easy topic, but it’s important to consider the implications for your pension once you pass away. There are a number of ways your pension is impacted, including who your pension goes to and how it’s affected by tax.
What happens to your pension when you die?
6 mins
What happens if your spouse or civil partner dies?
6 mins
What happens to your pension if you die?
5 min
If you’re already a PensionBee customer and haven’t done so, find out;
How to add a beneficiary
1 min
Mental health in retirement
Retiring is a significant milestone in life. For many, adjusting to life in retirement can be hard and could have an impact on their mental health.
Learn how to mentally prepare and adapt for life in retirement
6 mins
FAQs
How much have I saved so far?
When can I access my pension?
Can I access my pension early?
What happens to my pension if I leave my job?
Be pension confident!
Combine your old pension pots into one new online plan. It takes just a few minutes to sign up.
Get started
