What are the Retirement Living Standards?
The Retirement Living Standards were first published by Pensions UK in 2023. They’re based on research from Loughborough University and provide benchmarks to help people picture the lifestyle they want in retirement and the costs involved.
The standards outline three levels of living– minimum, moderate, and comfortable – and give examples of what each could cover, from every day essentials to spending on holidays and gifts.
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One person household
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Two person household
Never heard of Retirement Living Standards?
If you and your employees haven’t heard about the Retirement Living Standards, you’re not alone. Our latest research, 'Workplace pensions: How much is enough?', revealed only 63% of employees had heard of them. Of those who had, around half didn’t understand their purpose.
Our research also revealed that the average employee thinks they’ll need over £58,000 a year for a good standard of living in retirement1. Much higher than the £43,900 outlined in the comfortable retirement living standard, highlighting a gap between expectations and reality.
Why is it important to know about the Retirement Living Standards?
Pension savings can feel overwhelming. Many people put off thinking about them or simply save what they can and hope for the best.
The Retirement Living Standards can help your employees work out how much they need to save and understand if their current pension savings and contributions are on track, or if any changes are needed.
They also highlight the benefits of saving into a pension early on in working life. Which could mean employees don’t have to worry about making bigger pension contributions later in life when other expenses, like childcare or mortgages, take priority.
Tell your employees about the Retirement Living Standards
We’re on a mission to increase awareness of Retirement Living Standards because we believe education is the first step in helping everyone achieve a good retirement – no matter how far in the future that may be.
You can help your employees plan for their future by telling them about the Retirement Living Standards. Choose from the range of ready to use engagement resources in our communications toolkit, download and share.
You might also consider including reference to the standards in your employee pension communications, benefits, and engagement activities.
Join us in spreading the word about Retirement Living Standards and help your employees plan for a better future.
1. Source: Workplace pensions: How much is enough? 2025 (PDF)