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Pensions UK report

Journalist: Sonia Rach

ended 04. June 2026

Hi advisers!

I covered the Pensions UK report yesterday which found only 9 per cent of the UK working population is on track to achieve a comfortable retirement.

The annual standards, calculated by the Centre for Research in Social Policy at Loughborough University, show a single person now needs £13,900 a year for a minimum standard of living in retirement, £32,700 for a moderate lifestyle and £45,400 to live comfortably. 

For couples, the figures rise to £22,500, £45,400 and £62,700 respectively.

The report comes against a backdrop of growing concerns about retirement adequacy as it noted that 23 per cent of pensioners, equivalent to 2.8mn people, had incomes below a socially acceptable minimum standard of living in 2023/24.

There were also some interesting points about the growing importance of housing costs in retirement planning.

It warned the headline Retirement Living Standards assume retirees own their home outright and do not include housing costs, meaning mortgage payments, rent and social care costs could further increase the income needed in retirement.

New analysis included in the report found a single retiree living in London would need £32,089 a year to achieve the minimum retirement standard if they were renting privately, compared with £14,630 under the standard assumptions. 

A link to the full story is here: https://www.ftadviser.com/content/c1765bbd-9e17-4237-8376-40b7437c8729

But essentially I wondered how much of this you are seeing feed through to your daily conversations with clients? What are the concerns? What impact is this having?

I'd love to know your thoughts!

5 responses from the Newspage community

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Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
We are seeing this feed into client conversations more and more. Retirement planning used to be mainly about the pension pot. Now it is about the whole life structure: mortgage debt, rent, adult children, care costs, inflation and whether someone can actually afford to stop working.

The biggest concern is that many people are planning for the retirement their parents had, not the one they are likely to face. If you own your home outright, the numbers look very different. If you are renting, still paying a mortgage, or helping family financially, the gap can become frightening.

Clients are not always saying “I want a comfortable retirement”. They are saying “I do not want to run out of money” or “I do not know when I can stop”.

The impact is that advice has to become more realistic. We cannot just project pension income. We need to stress-test housing, spending habits, debt, longevity and the cost of staying independent.
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Graham Nicoll
Financial Planner, Chartered FCSI at NCL Wealth Partners
The reality matches the data: the "renting in retirement" scenario is reshaping daily client conversations. Clients increasingly realise that owning a home outright is no longer guaranteed especially with an increase in divorce rates, breaking traditional retirement models. Coherent planning now requires holistic cashflow modelling that explicitly builds in lifetime housing costs alongside inflation. We are shifting focus from just maximising a pension to blending retirement solutions. This means using ISAs for flexible, tax-free mid-career access, maximised pension contributions for structural growth, and structured savings pots as short-term liquidity buffers. Achieving a moderate £32,700 lifestyle means starting early; adding private rent, especially in London, makes early, diversified cashflow planning an absolute necessity.
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Rebecca Robertson
Independent Financial Adviser, Planner and Director at Evolution Financial Planning
For everyday people on my socials they don't think they will ever retire. That they will have to work forever, as they don't enough resources and the cost of living has only increased. Equally those who do have the resources aren't prioritising their retirement, they are living for today, they will worry about the future if they get there. I think covid, wars and general lack of feeling in control of their daily lives is creating a "live for today" mentality, which is creating a even bigger divide on those who are and whose who aren't looking at their pensions and investments.
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Adam Pickett
Independent Financial Adviser at McLaren Capital
Fortunately, because our clients work with us on their retirement planning most are well on their way to have the retirement they want. However, the conversations I have with the general public tell a story a lot more aligned with the pension report. People assume that between the State Pension and the minimum 5% and 3% workplace contributions they will be set up for retirement, because that's what the government has mandated. I always encourage young people to make sure at least 15% is going into their pension. If you are in your late 40s or 50s and haven't been saving this amount, it will likely need to be higher.

This is well and good for those who can afford it, but of course, large numbers of people simply cannot afford to save into a pension, let alone save towards a house, which likely make up the bulk of people the pension report is referring to.
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Jess Best
Independent Financial Planner at McLaren Capital
From experience there is certainly a general concern about whether my clients do have 'enough' for a comfortable retirement, to continue living the lifestyle they're used to. Often there is the added concern of 'what if we need to pay for care' and then it's a balancing act of expenditure priorities. This is where a full financial plan and cashflow forecasts are so important because it helps my clients visualise their money and see what is possible.

Everyone has a different idea of what they want their retirement to look like but in reality the state pension hardly covers basic bills and workplace pension contributions will only take savings a marginal step further. To achieve what is considered 'enough' private provisions, regular savings that can compound annually through investment growth, are the greatest opportunity of achieving 'enough'.

It's never to late to start a retirement plan but it is important to start!