How much pension will I get after retirement?

Your retirement income is made up of (a) the State Pension — up to £12,548/year for a full new State Pension from 2026/27 — and (b) sustainable withdrawals from your private pension, ISA, and savings. A common rule of thumb is to draw 4% of your pot in year one; a £250,000 pot yields roughly £10,000/year at that rate. The calculator runs a year-by-year projection for your specific numbers.

How much pension pot do I need to retire early at 55?

Retiring at 55 instead of 67 means 12 more years of drawdown and no State Pension income to help until age 67 (rising to 68 by 2028). This typically requires a pension pot 50–80% larger than retiring at 67. For a moderate PLSA lifestyle starting at 55, you would need roughly £500,000–£600,000, not £340,000. Note: the minimum pension access age rises from 55 to 57 in April 2028.

How Much Pension Do I Need to Retire in the UK? (2026/27 Guide)

Q: How much pension do I need to retire in the UK?

Using the PLSA 2025/26 Retirement Living Standards as a benchmark, a single person outside London needs roughly £13,400/year for a minimum lifestyle, £31,700/year for a moderate lifestyle, or £43,900/year for a comfortable lifestyle. The full new State Pension (£12,548/year) covers most of the minimum, so you mainly need a private pot to fund moderate or comfortable retirement — approximately £340,000 for moderate and £555,000 for comfortable, assuming retirement at 67.

Q: How much pension pot do I need at 67 for a comfortable retirement?

To sustain the PLSA comfortable living standard of £43,900/year alongside the full new State Pension of £12,548/year, you need a private pension pot of approximately £555,000 at age 67. This assumes a 30-year drawdown horizon, 5% nominal growth, 3% inflation, and UK income tax applied. Your own figure depends on growth assumptions and planning horizon.

Q: How much will my pension grow each year?

Pension growth depends on the underlying investments. Long-term UK pension fund returns have historically averaged 4–7% per year nominal, before fees and inflation. Our calculator uses 5% nominal growth as a default, but you can set your own assumption. A higher assumed growth rate substantially reduces the pot size needed — 7% nominal vs 5% nominal can cut the required pot by 25–40%.

Q: What is the 4% rule for pension drawdown?

The 4% rule is a rule of thumb that says you can draw 4% of your pension pot in the first year of retirement, then inflation-adjust that amount each year, and the pot should last around 30 years. So a £340,000 pot yields roughly £13,600 in year one. The rule is rough — it doesn't account for UK tax, ISA tax-free withdrawals, the 25% tax-free lump sum, or market sequencing risk. A full year-by-year projection is more accurate.

The short answer

For a single person outside London, the Pensions and Lifetime Savings Association (PLSA) 2025/26 Retirement Living Standards suggest three target incomes:

Lifestyle	Target net income	Approx. pension pot at 67*
Minimum	£13,400/year	£0 – £60,000
Moderate	£31,700/year	£340,000
Comfortable	£43,900/year	£555,000

*Approximate pot size needed in addition to a full new State Pension (£12,548/year), assuming retirement at 67, a 30-year horizon, 5% nominal growth, and 3% inflation. Your own numbers will vary.

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Why the State Pension does most of the heavy lifting for "minimum"

The full new State Pension for 2026/27 is £241.30 per week (£12,548/year). That's already close to the PLSA minimum income of £13,400/year.

If you qualify for the full new State Pension, you only need a small private pot — or part-time work — to reach the minimum standard of living in retirement. For most people, the real question is how to fund a moderate or comfortable retirement, both of which require material private savings.

The rough rules of thumb

The 4% rule: draw 4% of your pot in year one and inflation-adjust thereafter. A £340k pot yields roughly £13,600/year at that rate — add the State Pension and you land near PLSA moderate.
The "25x" rule: a pot 25× your desired annual private-pension income should last ~30 years at 4% withdrawal.
Retiring early costs more: retiring at 55 instead of 67 means 12 more years of drawdown and no State Pension to help, so the required pot is 50–80% larger.

These rules are rough. UK income tax, the 25% tax-free lump sum, ISA withdrawals (tax-free), and the Personal Allowance all affect how much gross withdrawal you need for a given net income.

What affects the answer most

Retirement age: every extra year of work both grows the pot and shortens the drawdown window — double impact.
Growth rate assumed: 5% nominal vs 7% nominal changes the required pot by 25–40%.
How long you need it to last: planning to age 95 vs age 85 adds roughly 20% to the required pot.
Other assets: an ISA and cash savings can fill gaps and manage tax bands efficiently.

Calculate your own number

Rules of thumb are a starting point — the real answer depends on your numbers. Our free UK pension calculator runs a year-by-year projection through retirement, applies current UK income tax, uses the full new State Pension of £12,548/year by default, and tells you the highest sustainable net income your pot can support.

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Frequently asked questions

How much pension do I need to retire in the UK?

Using PLSA 2025/26 living standards: roughly £13,400/year (minimum), £31,700/year (moderate), or £43,900/year (comfortable). The full new State Pension (£12,548/year) covers most of the minimum, so you mainly need a private pot to fund the moderate or comfortable tiers.

How much pension pot do I need at 67 for a comfortable retirement?

Approximately £555,000 in addition to a full new State Pension, assuming a 30-year drawdown, 5% nominal growth, 3% inflation, and UK income tax. For a moderate lifestyle the figure is around £340,000.

How much will my pension grow each year?

UK pension fund returns have historically averaged 4–7% per year nominal. Our calculator defaults to 5%, but you can change the assumption. A higher growth rate substantially reduces the pot size you need — 7% vs 5% nominal can cut the required pot by 25–40%.

What is the 4% rule for pension drawdown?

Draw 4% of your pot in year one, then inflation-adjust each year — the pot should last ~30 years. A £340k pot yields roughly £13,600 in year one. The rule ignores UK tax, ISA tax-free withdrawals, and the 25% tax-free lump sum, so it's a starting point, not the full answer.

How much do I need to retire early at 55?

Retiring at 55 rather than 67 usually requires a pot 50–80% larger: 12 more years of drawdown, and no State Pension until 67. A moderate PLSA lifestyle from 55 needs roughly £500k–£600k. Note: the minimum pension access age rises from 55 to 57 in April 2028.