Team No Comments

The Pension and Lifetime Savings Association

Retirement Living Standards

I’ve just been reading an industry article in today’s ‘New Model Adviser’.  This is a magazine for advisers by Citywire.  The article was headlined ‘UK adults in dark about retirement reality’.

As we work for most of our clients in both pensions and planning for retirement generally, I found the article interesting and thought I’d share some of the key data with you.  The Pensions and Lifetime Savings Association (PLSA) looked at retirement income needs.

The PLSA’s retirement income recommendations are as follows:


Lifestyle needs Annual income amount
Minimal for an individual £10,000.00
Moderate for an individual £20,000.00
Comfortable for an individual £30,000.00
Minimal for a couple £15,000.00
Comfortable for a couple £45,000.00


The article didn’t state if these are net or gross figures but looking at the figures, I would assume they are net.  Please note that these are figures for today and they would need inflation linking to any future retirement dates.

In terms of what people want from their retirement years these are the findings from another PLSA survey:

Retirement objectives Percentage of respondents
Not to have to worry about money 38%
To maintain my standard of living 34%
To be debt free 30%
To have a regular income 29%
To be mortgage free 17%


Respondents were allowed to select more than one answer.


Whilst the above is useful background information for ‘averages’ and ‘normal’ views in the UK based on this sample surveyed, I don’t think they are a useful guide for most of us.




Surely what you want depends on how you have lived, worked and earned throughout your working life?  If you have a great standard of living you wouldn’t want a minimal or even a moderate retirement lifestyle.

As this is the case you should look at your lifestyle now and decide what you would like in retirement.  The longer you have to plan and position yourself (or yourselves) tax efficiently for retirement the better.

It may just take a bit more planning now or you might need to look at your priorities and direct some more of your earned income/s into assets for your retirement.  Once you stop earning income most of us will live on our accrued assets (pension funds, cash, Stocks & Shares ISAs & other investments) for the rest of our lives.  You don’t want a shortfall!


Steve Speed


PLSA data from New Model Adviser 04/11/2019