How Much Do I Need to Retire?

Enter your target retirement income and we will calculate the pension pot size you need, how long it will last, and what you need to save each month to get there.

Target annual retirement income (£) — in today's money

Expected State Pension (£/year) — full new State Pension is £11,502. Enter 0 if unsure

Your current age

Target retirement age

Life expectancy — UK average is 82 for men, 85 for women

Current pension pot (£) — enter 0 if starting fresh

Expected growth rate

Conservative (3%) Moderate (5%) Optimistic (7%)

Retirement Planning Summary

What You Need

Target annual income

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State Pension provides

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Shortfall from private pension

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Years in retirement

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Pension pot needed

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How To Get There

Years to retirement

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Current pot projected value

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Additional pot needed

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Monthly saving needed

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Monthly saving with tax relief (20%)

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For guidance only. TheBizHQ.com is a private, independent website — not affiliated with HMRC, Companies House or any UK government body. All figures are estimates based on the information you enter and should not be relied upon for financial, tax or legal decisions. Tax rates are reviewed periodically but may not always reflect the latest HMRC changes. Full disclaimer →

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How much do you need to retire in the UK?

The Pensions and Lifetime Savings Association (PLSA) defines three retirement living standards for the UK:

Minimum — £14,400/year single, £22,400/year couple. Covers basic needs with some social activities.
Moderate — £31,300/year single, £43,100/year couple. More financial security and flexibility.
Comfortable — £43,100/year single, £59,000/year couple. More financial freedom and luxuries.

The 4% rule

A common rule of thumb is the "4% rule" — you can safely withdraw 4% of your pension pot per year without running out of money over a 30-year retirement. This means a pot of £500,000 could sustain £20,000/year of withdrawals. This calculator uses a similar sustainable withdrawal approach.

The State Pension

The full new State Pension is £11,502 per year (2025/26). It provides an important foundation — check your State Pension forecast at gov.uk/check-state-pension to see your actual entitlement based on your National Insurance record.

Inflation and retirement planning

Your target income is expressed in today's money. In reality inflation will erode purchasing power over a long retirement. Consider building in an inflation buffer — targeting a slightly higher income than you think you need today.

Tax in retirement

Remember that pension drawdown income is taxable. Use our Pension Drawdown Tax Calculator to understand the tax implications of your planned withdrawal strategy. With careful planning, many retirees can manage their income to stay within the basic rate band.