Retirement calculator
Our retirement calculator lets you see how much income you could need in retirement. We’ll help you figure out how much you need to save into your pension to achieve the lifestyle you want.
Important information - The value of investments and the income from them can go down as well as up, so you may not get back what you invest.
How the retirement calculator works
The calculator assumes a minimum standard of living based on the Pension and Lifetime Savings Association’s (PLSA), Retirement Living Standards. This includes a minimal cost required for travelling and transport, social and cultural activities, food and clothing. Please note: this amount is based on a single person.
You can increase this to a cost that might better suit your lifestyle, by using the plus key option (in increments of £1,000).
The tool also has suggestions of potential additional activities you might see yourself doing in retirement each year. All costs are per person but you can increase this by using the plus key within the tile. Costs are approximate and are not tailored for individual circumstances (Calculations last updated November 2022).
What next?
Explore our SIPP
Our Self Invested Personal Pension can help you save for retirement. With a great range of investments to choose from and online dealing, you can invest from just £20 a month.
Explore our SIPPCreating a retirement plan
Retirement is something to look forward to and whether it seems like a long way off or you are hoping to retire soon, there is nothing more important than being prepared.
Read about creating a retirement planHow we work out the figures
This is not a personalised recommendation - the figures are indicative and could be less or more for you depending upon your individual circumstances. We have not taken account what you'd need to earn, before tax is deducted, to pay for this lifestyle.
The minimum standard of living in retirement
This figure is based on the Pension and Lifetime Savings Association’s, Retirement Living Standards, sourced from independent research by Loughborough University. (November 2022) The research has been developed to help individuals picture what kind of retirement lifestyle they could have. Please note: this amount is based on a single person.
The Retirement Living Standards provides a minimum standard of living figure of £12,800 per year, for a single person living outside of London.
These costs include basic costs for food, alcohol, clothing, water rates, council tax, household insurances, gas, electricity, other housing costs, personal goods and services, travel costs rent etc.
The figure assumes that, come retirement, people should be able to visit the cinema, pay bills, get around, run a home and buy alcohol etc.
It doesn't include the running of a car. It doesn't take into account internet access, paid for film channels, cigarettes.
These figures are only a guide. Everyone's ideas of what constitutes an acceptable standard of living is different and we all live in different circumstances. For example, whether you need the latest mobile phone, and the level of Council Tax rates for the area you live in.
Source: https://www.retirementlivingstandards.org.uk/, November 2022
Other figures
The other figures shown in this calculator are simply meant to be a prompt as to the kinds of things you should consider in your retirement budgeting. These figures can never be precisely tailored to your existing circumstances and should only be used as a guide and not a personal recommendation.
3 weeks holiday in the sun
If you want to holiday in the sun. The £3,100 we've quoted is for a two-week stay in a Mediterranean three star resort and a one-week stay in a three star resort in Europe, per person, including flights and spending money per week.
Source: https://www.retirementlivingstandards.org.uk/, November 2022
3 x UK city breaks each year
If you want city breaks, we've assumed you'll spend £1,000 on three UK Bed & Breakfast weekends away per person.
Source: https://www.retirementlivingstandards.org.uk/, November 2022
Dining out with friends every 2 weeks
If you like to go out regularly, you don't want that to change. We've assumed a total figure of £2,400, made up of eating out once a fortnight, drinks, lunches and takeaways.
Note: Some of these costs may already be covered in the minimum standard of living.
Home improvements
Running repairs, redecorating, new fixtures and fittings – we've allowed £4,000 a year to keep your home looking good.
Note: Some of these costs may already be covered in the minimum standard of living.
Running & buying a second hand car every 5 years
Planning to replace a mid-range SUV or Estate car every five years. You should look to save £2,900 a year towards it.
Source: https://www.retirementlivingstandards.org.uk/, November 2022
Note: Some of these costs may already be covered in the minimum standard of living.
Health club membership
If you like staying fit, the average gym membership is about £600 a year.
Shopping trips
We've put down an annual figure of £1,800 - what you spend this on is up to you. This includes shopping for clothes, shoes, accessories and Christmas shopping.
Note: Some of these costs may already be covered in the minimum standard of living.
Theatre/concerts monthly
The £1,800 amount includes a theatre ticket for one, your train fare of £20 and a meal once a month.
Note: Some of these costs may already be covered in the minimum standard of living.
