How much money will you need in retirement?
It sounds like a simple question but for many people, the answer is anything but clear. In fact, a 2023 study by Scottish Widows* found that only one in five UK adults feels confident they’re saving enough for retirement.
So why do we avoid this question? And what can we do to get a clearer answer?
Why We Put Retirement Planning Off
Behavioural science has a few answers:
- Present bias makes us prioritise immediate spending over future saving. Retirement can feel distant, especially when life is hectic today.
- Uncertainty avoidance stops us digging deeper, because we’re worried we might not like what we find.
- And the ostrich effect (yes, really!) explains why we sometimes bury our heads in the sand when things feel too complicated or out of control.
But here’s the good news: the moment you do face these questions, things can become a lot clearer and a lot less stressful.
What Kind of Retirement Do You Want?
Everyone’s vision for retirement is different. Some people picture holidays and freedom, others want peace of mind and comfort. The key is to match your desired lifestyle with a clear retirement income goal. Then work out how to get there.
Quilter, using data from the Pensions and Lifetime Savings Association (PLSA), has outlined three retirement lifestyle levels, along with how much income you’d need each year, plus what size pension pot could make it happen.
These figures include the full State Pension, currently £11,500 per year (2024–25):
Sources: Quilter, 2024** and Retirement Living Standards by PLSA***
What Do These Lifestyles Look Like?
- Minimum – Covers essentials: food, heating, clothing, public transport, and a week’s UK holiday per year. There’s little room for luxuries.
- Moderate – Adds more freedom: a car, two weeks in Europe each year, regular meals out, and some budget for hobbies.
- Comfortable – Offers more flexibility: longer holidays, a new car every five years, more generous gifts and socialising, and more financial wiggle room.
So… What’s Your Number?
The key to retirement confidence isn’t just about how much you’re saving, it’s about knowing whether that saving is going to get you where you want to go.
That’s where a financial adviser comes in. At Citrus Financial, we help you:
- Understand your goals and the lifestyle you’re aiming for
- Review what you’ve already saved, for example pensions, ISAs, and other investments
- Estimate what you’re on track to receive, and identify any gaps
- Build a plan to get you from where you are to where you want to be
It’s Never Too Early (or Too Late) to Plan
Even if you’re years away from retirement, making small changes now, like increasing contributions or consolidating old pensions, can have a big impact. And if you’re approaching retirement? It’s the perfect time to understand what’s realistic, and how best to access your money when the time comes.
Whatever stage you’re at, the best way to move forward is with clarity.
We’ll Help You Find Your Number
You don’t need to figure this out alone. Whether you want the basics covered or the retirement of your dreams, we’ll help you create a clear, confident plan for your future.
We want you feeling better off from having met us.
Ready to find your number? Get in touch and let’s start the conversation.
* Source: Scottish Widows Retirement Report 2023
**Source: Quilter – Pension Pot Estimates (2024)
*** Source: PLSA – Retirement Living Standards (2023–24)
The value of pensions and the income they produce can fall as well as rise, you may get back less than you invested.
Transferring out of a Final Salary scheme/Defined Benefit Scheme is unlikely to be in the best interests of or be suitable for most people.
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 26/03/2025
About the author: David is a highly regarded financial expert, known to many as BBC Radio Kent’s “Money Mentor,” where he shares practical advice and insights on managing money effectively. As the founder of Citrus Financial, David has built a reputation for providing tailored financial guidance to individuals and families, helping them achieve their financial goals with confidence.
You can hear more of David on BBC Sounds.
