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Immoderate retirement incomes.

ended 03. June 2026

Pension UK's updated Retirement Living Standards (RLS) report underlines, once again, that many people are not saving enough for their retirements.

The annual standards, calculated by the Centre for Research in Social Policy, Loughborough University, now show that a Minimum retirement lifestyle costs £13,900 a year for a one-person household and £22,500 for two people. A Moderate lifestyle costs £32,700 for one person and £45,400 for two, while a Comfortable lifestyle costs £45,400 and £62,700 respectively.

The figures reflect increased everyday costs across spending categories such as food, essential household bills and transport, as well as social activities and hobbies.

Pensions UK expects around 82% of the working population to reach the Minimum standard of living in retirement. However, this falls to just 23% reaching a Moderate standard and 9% reaching Comfortable.

Pensions UK says this is out of step with what some people expect for their retirement — and that, without higher levels of saving, there is a risk that many will face a significant drop in income when they stop working.

Qs:

  • What's the message that these latest findings should send to people?
  • If you're in your fifties and running out of time to save, what should you do?
  • Do people still believe that the state pension will support them sufficiently during retirement?

9 responses from the Newspage community

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Anita Wright
Chartered Financial Planner at Ribble Wealth Management
The deeper point is that the goalposts keep moving. These numbers climb every year because the pound in your pocket buys a little less every year. That's the part most people miss. You can hit a savings target and still come up short, because the target is tied to a currency that's quietly losing value. So the lesson isn't simply save more. It's protect what you save. A pension pot is just a claim on the future. The real question is what that future is going to cost. In your fifties time is shorter, not gone. Strip out the costs you won't miss and redirect that money. Clear expensive debt before it compounds against you. A lot of people still treat the state pension as a backstop that'll be there in full. A shrinking workforce is being asked to support a growing number of retirees. That maths gets harder every year. The triple lock looks generous today, but it's a political choice, and political choices change. Plan as if the state pension is a bonus, not the foundation.
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Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
This report is an uncomfortable wake up call. The dilemma is tough because the cost of living is relentless. Even if you can't afford to put more in, you can look at how aggressive your investments are and also think about how long you have before you need to draw on your savings. Being proactive with your pensions could set you up for a stronger future.
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Eamonn Prendergast
Chartered Financial Adviser at Palantir Financial Planning Ltd
The message is clear — most people are on track for a basic retirement, but not the one they expect.”
“Auto-enrolment has helped, but minimum contributions simply aren’t enough to deliver a moderate or comfortable lifestyle. Without action, many face a sharp drop in income when they stop working.

If you’re in your fifties, it’s not too late, but you need a plan. A simple cashflow forecast can show where you stand, and there are only three levers: earn more, save and invest more, or spend less.

The State Pension provides a foundation, not a solution , especially for those without housing security. The earlier people engage and take advice or guidance, the better their chances of closing the gap
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Antonia Medlicott
Founder & MD at Investing Insiders
The latest findings send a sobering message: for millions of workers, retirement expectations and reality are drifting further apart.
Many people still picture a retirement with holidays, hobbies and more freedom, yet rising costs mean achieving that lifestyle now requires a larger income than many realise.
If you're in your fifties, the good news is that you still have time to act. Increasing pension contributions, delaying retirement by a few years, consolidating old pension pots and making full use of employer matching can all make a meaningful difference. The biggest mistake is assuming it's too late. Your fifties are often your highest-earning years and one of the most important decades for retirement planning.
As for the State Pension, most people see it as a foundation rather than a complete retirement income. It can cover some essentials, but it was never designed to fund the retirement lifestyle many people expect. For most retirees, private savings will do the heavy lifting.
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Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
The message is simple: retirement is not one number. There is a huge difference between surviving, living modestly and actually enjoying later life. These figures show that too many people may reach retirement and realise the lifestyle they imagined is not the lifestyle they funded.

If you are in your fifties, it is not too late, but it is too late to guess. You need to know your pension value, state pension forecast, mortgage position, expected spending and whether you can increase contributions, delay retirement, reduce debt or use other assets more strategically.

The state pension is important, but it was never designed to fund a comfortable retirement on its own. Relying on it completely is risky, especially when housing costs, care costs and inflation can change the picture quickly.

People need to stop seeing pensions as something boring in the background. Your pension is future income. If you ignore it, your future self pays the price.
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Philly Ponniah
Chartered Wealth Manager and Financial Coach at Philly Financial
The biggest message from these findings is that retirement is becoming more expensive while many people are still saving based on outdated assumptions. Reaching a minimum standard of living is one thing, but most people don’t dream about retirement, work hard for decades and then aspire to the bare minimum. The gap between what people expect retirement to look like and what their pension is likely to deliver remains one of the biggest financial blind spots in the UK. For people in their fifties, the good news is that it’s not too late. The worst thing you can do is assume you’ve missed your chance. Start by getting clarity on what pensions you already have, what income they might provide and what gap needs filling. Even small increases in pension contributions can make a meaningful difference over the final 10 to 15 years of working life, particularly when combined with employer contributions and tax relief. The key is taking action now rather than hoping things will somehow work out
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
The state pension has increased significantly over the last decade, especially because of the triple lock. A couple will now receive over £25,000 per annum. However, the cost of living has also rocketed, so any additional income is worthwhile. With gilt rates higher than they’ve been for nearly two decades it’s a great time to buy a retirement income in terms of an annuity, and pension tax relief one of the view generous benefits the government have yet to cut, ploughing income into a pension rather than paying up to 45% tax makes sense, especially if you’re older and nearing retirement.
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Graham Nicoll
Financial Planner, Chartered FCSI at NCL Wealth Partners
The new figures are a wake-up call: relying on the State Pension alone guarantees a bare-minimum lifestyle. The gap between expectations and reality is a looming crisis for the 77% of workers missing a moderate retirement. If yo’are in your fifties, do not panic, act! Maximise your workplace pension contributions to capture employer matching, utilise carry forward tax allowances, and review any cash, ISAs, Pensions and investments to ensure they are working towards your desired lifestyle in retirement. People still mistakenly think the state will provide enough. It will not. It is an inflation-squeezed safety net, not a funding plan for a comfortable lifestyle.
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Gosia Dawson
Director at Glade Financial
The biggest risk isn't poor investment return; it's not saving enough in the first place. These figures highlight a growing gap between the retirement people expect and the retirement they're actually preparing for. I see this particularly among business owners, who often spend years building their businesses while neglecting their own retirement planning. Many assume the business will fund their retirement one day, but that isn't a strategy - it's a hope. Women face a different challenge. Career breaks, caring responsibilities and lower lifetime earnings often result in significantly smaller pension pots. Yet women typically live longer and therefore need their retirement savings to last longer, too. If you're in your fifties, now is the time to confront the numbers. Understand what income your pensions could realistically provide, identify any shortfall and take action while you still have earning power on your side.