How much do I need to retire?

The amount depends on the life you intend to lead, your health, your other assets and whether you plan to work part-time.

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Start with what you will spend

Work out what your retirement will cost before you look at what your pension will pay. Split your spending into three layers.

Add up every source of income

List every source: old workplace schemes, a personal pension, the State Pension, ISAs, savings, any property or business, and any part-time work.

You also need to know whether your cash reserve is enough, how a partner's income fits in, when the State Pension starts, and whether drawing from one account before another changes your tax.

66State Pension age today, and rising
55earliest most pensions can be touched, rising to 57 in 2028
£241.30full new State Pension a week, 2026/27
11 yearsthe gap between 55 and 66 you may have to fund yourself

State Pension figure: gov.uk, 2026/27 rate, checked 29 October 2026. Amounts depend on your National Insurance record and change each April.

Pension benefits and the tax treatment of them depend on your circumstances and on current rules, which can change.

What changes the amount you need

When you stop
Retiring three years earlier means three more years of spending funded by three fewer years of saving.
Whether you stop completely
Part-time work for even two or three years reduces what you draw in the early years of retirement, when spending is highest.
Housing
A mortgage that runs into retirement, or rent, changes the essential layer more than anything else on the list.
Inflation
It increases what you need every year, and has most effect on a fixed income over a long retirement.
Care
Care costs in later life add to what you need.
Tax
The order in which you draw from each pot changes how much tax you pay.

Related questions

Is the State Pension enough on its own?

It covers part of the essential layer. The full new State Pension is £241.30 a week in 2026/27, which is around £12,548 a year, and what you get depends on your National Insurance record. (Source: gov.uk.)

Is the “two-thirds of your salary” rule any use?

It is a rough check. It ignores whether your mortgage is paid off, whether you have children still at home, what you intend to do with your time, and what you already hold. Two people on the same salary can need very different amounts.

How do I know if I am on track?

Add up what you hold, project what it is likely to produce and compare that with what your retirement will cost. The gap, in either direction, tells you whether you are on track.

What if I have left it late?

You can still improve your position by working a little longer, contributing more while you still have earnings, taking benefits in the right order, and being realistic about lifestyle spending.

Calculators

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Whether your pensions will cover the retirement you want, and by how much they miss.

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Where this fits

Working out how much you need and how to close any gap is part of the complimentary health check.

Pensions and retirement adviceGet a complimentary health check

The advisers for this subject

Sunny Bharj

Sunny Bharj

Independent Financial Adviser

Tony Springer

Tony Springer

Independent Financial Adviser

Advising through Equity & General Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority. Check the firm on the FCA register under number 474163.

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