Am I saving enough for my retirement?

A simple guide for people in their 50s and 60s

If you were saving for a big holiday, the goal would be clear. You would know roughly how much money you need and when you want to go.

Retirement isn’t like that.

Most of us don’t know exactly when it will happen or how long it might last. That uncertainty can make retirement planning feel daunting.

So, if you have ever asked yourself, “Am I saving enough for retirement?”, you are certainly not alone.

In fact, many people in the UK are saving nothing for retirement at all. Research suggests that around 45% of working-age adults are not contributing to a pension¹. So, the fact you are already saving for retirement is great news, and it’s something worth recognising. The next step is simply to take stock.

A quick way to think about retirement planning

To see if you are on track for retirement, it helps to answer three simple questions:

• How much income might you need?
• What income could your current savings provide?
• Are there small steps that could improve the picture?

This guide walks you through each of these questions to help you build a clearer view of your retirement.

How much money will you need in retirement?

One way to start answering this question is to look at the Retirement Living Standards². These were created by Pensions UK and Loughborough University to help people picture what different lifestyles in retirement might cost.

The Standards describe three different levels of retirement living: minimum, moderate and comfortable. They show the typical income needed for both one-person and two-person households.

Minimum standard	One-person household	Two-person household
Covers all your needs, with some left over for fun.	£13,400 a year	£21,600 a year

Moderate standard	One-person household	Two-person household
More financial security and flexibility.	£31,700 a year	£43,900 a year

Comfortable standard	One-person household	Two-person household
More financial freedom and some luxuries.	£43,900 a year	£60,600 a year

The Retirement Living Standards website goes into much more detail about what these levels of income could mean in practice. It explains the kinds of activities, spending and lifestyle choices that sit behind the figures, so you can picture the sort of retirement they might support.

What about your personal picture?

While the Standards are a helpful guide, everyone’s situation is different. Your retirement spending will depend on your lifestyle, your plans and the costs you expect to face.

It can help to think about your future spending in three broad categories:

1. Core spending: these are your essential costs, such as housing, household bills, food, insurance, day-to-day travel and any healthcare costs.

2. Lifestyle spending: this covers the things that make life enjoyable: holidays, hobbies, meals out, supporting family members and larger purchases.

3. Emergency spending: unexpected costs will arise from time to time, whether it is replacing a car, repairing a roof or fixing a boiler. Having some money set aside for these moments can provide valuable peace of mind.

How much income might you have in retirement?

Once you have an idea of the income you might need, the next step is to look at the income you could receive.

It often helps to divide this into two groups: relatively predictable income and other potential sources of income.

Relatively predictable sources of income

For most people, the main predictable income in retirement will be the State Pension and possibly a final salary workplace pension.

If you are currently aged between 50 and 65, you are likely to start receiving your State Pension at age 67. The full new State Pension is currently just under £12,000 a year.

While final salary pensions are less common than they once were, they are extremely valuable. They provide a guaranteed income from a set age, usually in your early sixties, based on your salary and the number of years you worked for the employer.

Other potential sources of income

You may also have other assets that could help support your retirement. These might include:

Defined contribution pensions: these could be workplace pensions or personal pensions. The income they provide will depend on how much has been saved and how your investments perform over time.

Other savings: this might include savings in the bank, ISAs or other investments.

Work and other income: many people choose to continue working part-time or occasionally into their sixties and beyond. Others may receive income from sources such as rental property.

One-off lump sums: you may receive money from an inheritance or from selling an asset such as a property.

Working out what income these different sources might provide can be complicated. This is often where professional financial advice can help. And a good adviser doesn’t just look at the numbers; they help you understand your options and make a plan that feels comfortable for you.

Bridging the income gap in retirement

Once you have a clearer picture of the income you might need and the income you could have, you may discover a gap between the two.

That is very common. The good news is that there are often practical ways to improve the situation.

Small changes can sometimes make a surprisingly large difference over time. For example, you might consider:

• making sure you are getting the full benefit of your workplace pension
• reviewing pension charges and administration costs
• ensuring your investments are working as effectively as possible
• increasing your contributions in a manageable way

A financial adviser can help you explore these options and build a plan that feels realistic and sustainable.

Why listening and caring should never go out of fashion

Financial advice is about much more than numbers.

Your circumstances, your hopes for the future and the things that keep you awake at night are all unique. A good adviser understands this and takes the time to listen.

As you would expect, at Pension Sense our advisers have the expertise to analyse complex financial information. Yet, just as importantly, they are great listeners.

By understanding what matters most to you, they can help create a retirement plan that reflects your priorities and gives you greater confidence about the future.

Many people delay seeking advice because they worry they will be told they have not saved enough.

In reality the conversation is often far more positive. Sometimes people discover they are in a better position than they thought. In other cases, small changes can make a meaningful difference over time.

If you are already saving for retirement, that is something to be proud of. The next step is simply making sure that the money you have worked hard to save is working as hard as it can for your future.

If you would like help understanding your own retirement picture, we are here to give you clarity and peace of mind about the years ahead.

¹ The Pensions Commission, Department for Work and Pensions and HM Treasury, July 2025
² The Retirement Living Standards are the property of and are provided by Pensions UK and Loughborough University