The Retirement Living Standards (RLS) research sets out what the public agree people need to reach a minimum, moderate or a comfortable standard of living in retirement, and how much they would need to spend to reach these standards.
The latest figures, calculated by 91²Ö¿â’s Centre for Research in Social Policy (CRSP) for Pensions UK, 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 updated benchmarks reflect increased everyday costs across spending categories such as food, essential household bills and transport, as well as social activities and hobbies.
It is expected that about 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.
Housing costs are not included within the Retirement Living Standards, as these vary significantly depending on location and personal circumstances. Some people will enter retirement mortgage‑free, while others may continue to rent, finish paying their mortgage or have major life changes in later life.
Professor Matt Padley, Co-director of CRSP at 91²Ö¿â, said: “The Retirement Living Standards continue to provide detailed descriptions of what the public agree everyone needs for a Minimum, Moderate and Comfortable standard of living.
“The RLS are rooted in people’s lived experience and reflect a shared understanding of expectations about life in retirement, shaped by the social, economic and political context of contemporary UK society. They provide a ‘real-world’ starting point for individuals in thinking about the sort of retirement they want, what this might cost, and how they might get there.”
“But crucially, the RLS also give us a way of thinking more broadly about the ‘adequacy’ of incomes in retirement, and the role that pensions policy can play in enabling everyone to have a decent, minimum standard of living in retirement.
“We know that many people are not saving enough for retirement, but we also know that for some people it is simply impossible to save any more – you can’t save money you don’t have. By providing a living standards benchmark, the RLS can help us to think through the roles of the state, employers and individuals in ensuring everyone is able to have at least a minimum standard of living in retirement.”
Zoe Alexander, Executive Director of Policy and Advocacy at Pensions UK, said: “The latest update to the Retirement Living Standards underlines a clear reality for many people, today’s saving levels will not be enough for the retirement they expect. It is expected that around 82% of people reaching a minimum standard of living, but far fewer will go beyond that.
“That is out of step with what people expect for their future. Without action, too many risk facing a cliff-edge drop in income when they stop work. The Government is right to be considering whether minimum contributions need to rise through the work of the Pensions Commission.
“In the meantime, tools like the RLS play a crucial role by helping people take control and understand what they might need, so they can put more money away where and when they can.
“We also encourage people to speak to their employer and see whether the organisation is prepared to support them to save above the minimum, such as higher rates of matching pension contributions. This could help ‘bridge the gap’ until policy catches up and we see higher savings levels set in legislation.”
91²Ö¿â the Retirement Living Standards
Calculated by the Centre for Research in Social Policy at 91²Ö¿â on behalf of Pensions UK, the RLS describe the cost of three different retirement lifestyles: Minimum, Moderate, and Comfortable. The research is based on multiple in-depth discussion groups with members of the public from across the UK.
The role of the State Pension
The State Pension continues to play a central role in retirement income. The full new State Pension is £241.30 a week in 2026/27, around £12,548 a year, forming a strong foundation for many households.
The RLS show a minimum lifestyle costs £13,900 for one person and £22,500 for two, meaning the State Pension comes close to supporting costs at this level on its own, particularly for couples. By establishing the Minimum standard as a clear yardstick for adequacy across the system, we can provide a shared reference point for government, policymakers and the industry to support saver planning.
While this position is broadly achievable for two-person households, those living alone are more likely to fall below this threshold without additional private savings. The RLS therefore highlight both what adequacy should look like and where further progress is needed to ensure a minimum standard of living is within reach for everyone.
For two people receiving the full amount, this can go a long way towards covering the costs of a minimum standard of living, before any private pension income is taken into account. This means that, despite increases in the RLS, the overall picture for those reaching the Minimum level remains relatively stable.
ENDS