What Is a Comfortable Retirement Income for a Single Person in 2026?

How Much Do You Need to Retire Comfortably?

One of the most common questions in retirement planning is: how much income do I actually need? The answer varies significantly depending on where you live, your health, your lifestyle, and your priorities. However, independent research provides useful benchmarks.

The PLSA Retirement Living Standards

The Pensions and Lifetime Savings Association (PLSA) publishes annual Retirement Living Standards that estimate the income needed to achieve different lifestyle levels in retirement. The 2024 figures (the most recently published) provide the following guidance for a single person living outside London:

• Minimum: £14,400 per year — covers all needs with some left for fun, but little room for luxuries or car ownership
• Moderate: £31,300 per year — more financial security and flexibility, includes a week's holiday abroad and some cultural activities
• Comfortable: £43,100 per year — includes regular short breaks in Europe, a car replacement every five years, and some financial gifts to family

In London, costs are higher across all categories.

How Much of This Does the State Pension Cover?

The full new State Pension in 2026/27 is £11,502.40 per year (£221.20 per week). This covers roughly 80% of the minimum standard for a single person but leaves a significant gap at moderate and comfortable levels.

The gap between the state pension and a comfortable retirement income for a single person is approximately £31,600 per year — which needs to come from private pensions, savings, and other sources.

How Much Pension Pot Is Required?

Using the PLSA comfortable standard of £43,100 as a target, and subtracting the state pension of £11,502, a single retiree needs approximately £31,600 per year from private sources.

To generate £31,600 per year from drawdown at a 4% withdrawal rate, a pot of approximately £790,000 would be needed. At a more conservative 3.5% rate, the required pot rises to around £903,000.

For the moderate standard (£31,300 total, £19,800 from private sources), the equivalent pot at 4% is approximately £495,000.

What If You Have a Smaller Pot?

Many people retire with pots significantly smaller than these figures. Options that many people consider include:

• Adjusting lifestyle expectations to match available income
• Working part-time in early retirement to reduce drawdown pressure
• Using housing equity (downsizing or equity release) to supplement income
• Combining a partial annuity with drawdown for guaranteed baseline income

Speak to a qualified financial adviser for personal guidance on retirement income planning and whether your savings are on track for your retirement goals.