How much I'll need for retirement

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 how you will pay for it? 

If you’re getting ready to retire, or just thinking ahead, it’s good to know whether your pension savings are on track. 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 forecast 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 forecast of how much your lifestyle 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.

You’ll find the Retirement Budgeting Calculator in the Planning for the Future area of your account and in the help and support area of the website.

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 calculator with a pound sign next to it
Retirement Budgeting Calculator 

Use this tool 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 afford the retirement you want, you’ll need to compare your likely spend with the amount of income you’re forecast to get. You can do this using the tools in your myRPS account, such as the Retirement Modeller. 

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 Retirement Modeller, available in your myRPS account, gives you an estimate of what you might receive from your IWDC pot before tax.

What to read next...

Making the right decision

Things to consider before you decide when and how to take your IWDC pot.

Retirement Budgeting Calculator

Use the Retirement Budgeting Calculator to work how how much income you might need to afford the lifestyle you want when you retire.

Your Retirement Modeller

Log in to your myRPS account and find the Retirement Modeller under 'My Library' to see what your Personal Retirement Account could be worth when you take it, and your options for how you take it.