With nearly half of UK workers not saving enough for retirement, pensions have become a critical financial concern. The government has revived the Pensions Commission to address this growing crisis, as experts warn that future retirees could face £800 less per year than current pensioners.
How Much Pension Do You Need to Retire Comfortably?
According to the Retirement Living Standards, the minimum annual income needed is:
£14,400 for a single person
£22,400 for a couple
For a comfortable retirement, those figures rise to:
£44,000 (single)
£60,000 (couple)
Assuming a 20-year retirement, you’d need at least £280,000 saved—and significantly more for a luxury lifestyle.
For a deeper breakdown of retirement costs, check this MoneySavingExpert guide.
4 Key Strategies to Boost Your Pension
1. Maximise Employer Contributions
Many workers contribute only the minimum auto-enrolment rate (8% of earnings, with 3% from employers). However, some companies offer matched contributions—meaning if you pay more, they will too.
“Increasing contributions by just 1% in your 20s could add £100,000 to your pension pot by retirement.” – Which? Pensions Advice
