How much I'll need for retirement

Simple ways to work out what income you'll need when you stop work.

Your costs when you retire

You can probably picture the retirement you want – holidays, time with family and friends, a few improvements on the house, and a new car, maybe?

But do you have any idea how much this might cost or whether you can afford it? Use the tools below to find out. 

A notepad with Retirement Goals written on the front cover, alongside pictures of a beach umbrella, house keys, cutlery and a car.
A general guide to retirement costs

You can use the 'Retirement Living Standards' (RLS) for a general idea of how much you might need when you retire, depending on the type of lifestyle you want to have.

The RLS were created by the Pensions and Lifetime Savings Association (PLSA) and Loughborough University, and show roughly how much you might need each year, based on 3 different standards of living.

We’ve included a summary of the RLS below. Costs will be higher in London than those shown.

Visit the Retirement Living Standards website for more information. 

A grid showing how much 3 different levels of retirement lifestyle might cost

*Figures quoted are from the Retirement Living Standards published by the PLSA and Loughborough University. (Costs will be higher in London). Full details can be found at retirementlivingstandards.org.uk.

A personalised estimate of how much you might need

For a more personalised estimate of how much you might need when you retire, you can use the Retirement Budgeting Calculator.

The calculator uses the Retirement Living Standards above as a starting point and then lets you adjust individual costs, such as leisure and travel expenses, to suit your own needs

This means you will get a personalised summary of how much the lifestyle you hope for could cost you each year.

While this is not a guarantee, it does give you a general target to aim for with your retirement income.

From 6 April 2028, the Minimum Pension Age will be increased from 55 to 57. If you will reach age 55 on or after 5 April 2028, you won’t be able to retire before 57 unless you have a Protected Pension Age of either 50 or 55.

We haven’t updated our estimates process or planning tools to reflect this change yet. So although you can still request an estimate or use the Pension Planner, from age 55 the information quoted may not be accurate.

You can read more about the change in this article.

A shopping basket and a calculator
Retirement Budgeting Calculator 

Use this tool in your myRPS account to work out how much money you might need to pay for the retirement you want.

Working out if your pension adds up

To find out whether you’re on track to be able to afford the retirement you want, you’ll need to compare your likely spend with the amount of income you’re likely to get. You can do this using the tools in your myRPS account, such as the Pension Planner. 

Visit the making the right decision page to find out more and learn what actions you can take if the numbers don't add up. 

Please keep in mind that, the Retirement Living Standards and Retirement Budgeting Calculator figures are based on the income you may need after tax, whereas the Pension Planner, available in your myRPS account, gives you an estimate of what you might receive from your pension before tax.

What to read next...

Retirement Budgeting Calculator 

Work out how much income you might need to pay for the retirement you hope for. 

Making the right decision

Things to consider before deciding how and when to take your DB pension. 

Saving more 

Find out how to boost your pension by making Additional Voluntary Contributions (AVCs).