How much do I need to retire?

Set the retirement you want and the age you want it, and this works out the pot behind it — including the years before the State Pension starts, which is the part most calculators quietly skip.

Your situation

The retirement you want

Assumptions

How much of the pot you draw each year. 4% is a widely-used rule of thumb, not a guarantee — drag it and watch how much the answer moves.

A pot of roughly

£507,121

to support £31,300 a year from age 65, drawing 4.0% a year, with the State Pension counted.

How that breaks down

Income you want each year
£31,300
Less the State Pension
− £11,973
Your pot needs to provide
£19,327
Pot for that, at 4.0%
£483,175
Plus 2 years before the State Pension starts
+ £23,946
Total
£507,121

You plan to retire 2 years before the State Pension starts at 67, so your own savings carry that gap.

Against what you have today

Pensions and savings now
£50,000
Difference to the target
£457,121
Spread over 20 years, before any growth
£22,856/yr

That last line is simple division — it takes no account of investment growth, employer contributions or tax relief, all of which change the picture. It is the size of the gap, not a savings plan.

For context, median private pension wealth for people 45–54 in the UK is about £75,500.

This is the national picture. Yours will differ.

The free check asks about your actual pensions, income and plans, and gives you a written report you can take to an adviser.

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This calculator is an illustration using national benchmarks from PLSA Retirement Living Standards, the Office for National Statistics, and gov.uk — not a projection, a forecast, or a personal recommendation. It does not account for inflation, investment growth, tax, or your own circumstances. RetireReady is not a financial adviser; we connect you with advisers who are regulated by the FCA.

How the number is worked out

Start with the income you want. The PLSA Retirement Living Standards are the usual reference point in the UK — £14,400 a year for a Minimum retirement as a single person, £31,300 for Moderate, £43,100 for Comfortable.

Take off the State Pension, because it does part of the job for you. The full new State Pension is £11,973 a year — but only from age 67, and only with about 35 qualifying National Insurance years behind it.

Whatever is left is what your own pot has to produce. Divide it by your withdrawal rate — the share you take out each year — and you have the target. At 4%, every £1,000 of annual income needs £25,000 in the pot.

Then there is the part that catches people out. If you stop working before 67, your savings carry the full income until the State Pension arrives. Retiring at 60 means seven years of that, and the pot has to be bigger to match.

What this does not do

It does not model investment growth, inflation, tax, employer contributions or tax relief — all of which matter, and all of which depend on your own position. It is a benchmark, not a forecast, and deliberately so: telling you what you will have is a projection, and that is a conversation for a regulated adviser.

Common questions

How much do I need to retire in the UK?
It depends on the retirement you want and when you stop working. The PLSA Retirement Living Standards put a Minimum retirement for a single person at £14,400 a year, Moderate at £31,300 and Comfortable at £43,100. Subtract the State Pension, then divide what is left by your withdrawal rate to get the pot you need. At a 4% withdrawal rate, a Moderate retirement starting at State Pension age needs roughly £480,000.
How much is the State Pension?
The full new State Pension is £11,973 a year and starts at age 67. That is the maximum — you need around 35 qualifying years of National Insurance to get it in full, and at least 10 years to get anything. Check your own forecast at gov.uk/check-state-pension.
What is the 4% rule?
The 4% rule is a rule of thumb that says you can withdraw 4% of your pot in the first year of retirement, then increase that amount with inflation, without running out over a long retirement. It comes from historical US market data. It is a planning convention, not a guarantee, and the right rate for you depends on how long your retirement is and how your money is invested.
What if I want to retire before State Pension age?
Your own savings have to cover the whole income until the State Pension starts at 67. Retiring at 60 rather than 67 means seven years with no State Pension, so you need a noticeably larger pot. This is the part most calculators leave out.
Is this calculator financial advice?
No. It is an illustration built on published national benchmarks, not a personal recommendation or a projection of what you will have. RetireReady is not an FCA-authorised adviser — we give you a free personalised report and connect you with advisers who are regulated by the FCA.

Now see where you actually stand

A couple of minutes of questions about your own pensions and plans, and a written report benchmarking your position. Free, and yours to keep.

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Figures from PLSA Retirement Living Standards, the Office for National Statistics, and gov.uk. Not financial advice.