What are you aiming for?
Which standard of living are you aiming for in retirement?
The information below gives you a picture of what different standards of living look like for a single person and what income they are based on.
Minimum
Enough to cover all of your basic needs and still leave you a little bit more for fun, such as:
- DIY maintenance of £100 a year to,
- a weekly food shop of £50, £25 a month on food out of the home and £15 a fortnight on takeaways,
- a week and a long weekend in the UK every year,
- basic TV and broadband plus one streaming service,
- no car, £10 a week on taxis and £100 a year on rail fares,
- up to £630 for clothing and footwear each year, and
- a £20 budget for each birthday and Christmas present,
- £50 a year charity donation.
Moderate
Enough to give you more financial security and flexibility than the minimum standard of living such as:
- some help with maintenance and decorating each year,
- a weekly food shop of £55, £30 a week on food out of the home, £10 a week on takeaways and £100 a month to take others out for a meal.
- a two-week, three-star, all-inclusive holiday in the Med and a long weekend break in the UK,
- basic TV and broadband plus two streaming services,
- a three-year-old small car, replaced every seven years, £20 a month on taxis and £100 a year on rail fares,
- up to £1,500 for clothing and footwear each year, and
- a £30 budget for each birthday present and Christmas present, £200 a year charity donation and £1,000 for supporting family members.
Comfortable
Enough to give you more financial freedom and some luxuries, such as:
- replacing the kitchen and bathroom every 10/15 years,
- a weekly food shop of £70 a week, £40 a week on food out of the home, £20 a week on takeaways and £100 a month to take others out for a meal,
- a three-year-old small car, replaced every five years, £20 a month on taxis and £200 a year on rail fares,
- a two-week, four-star holiday in the Med with spending money and three long weekend breaks in the UK each year,
- extensive bundled broadband and TV subscriptions,
- up to £1,500 for clothing and footwear each year, and
- a £50 budget for each birthday and Christmas present, £25 a month charity donation and £1,000 for family support.
Visit the PLSA’s retirement living standards website to see what else minimum, moderate and comfortable standards of living include. You can also see what these figures would look like for a couple.
How much retirement income do I need for each standard of living?
Minimum
An income of around £14,400 a year if you are single, or £22,400 between you if you are a couple.
Moderate
An income of around £31,300 a year if you are single, or £43,100 a year if you are a couple.
Comfortable
An income of around £43,100 a year if you are single, or £59,000 if you are a couple.
These figures are net of any tax you may have to pay once you start taking your pension. Don’t forget you’ll need to factor this in when you’re planning how much you’ll need to enjoy the standard of living you want in retirement.
Don’t forget the state pension
At the moment the full state pension is £11,502.40 a year once you reach your state pension age. This will be reviewed again ahead of the 2025/2026 tax year.
If you’re entitled to the full state pension that would go most of the way to making sure you had enough income in retirement to meet the PLSA’s minimum standard of living.
You can see how much state pension you are entitled to at gov.uk/check-state-pension
The pension or savings that you build up with Nestlé, and any other pension savings that you have elsewhere, will help to provide you with the rest of the income you’ll need once you retire.