The State of UK Pensions
2026/27 Edition
11 million people were auto-enrolled into workplace pensions. Most still can't afford a moderate retirement.
How much has the UK saved?
Average pension pots by age bracket, from the ONS Wealth and Assets Survey – then modelled through drawdown.
£152,000
Average pot at retirement (ages 60–65)
What £152,000 actually buys you
Convert the average pot to monthly income and the picture changes. At an illustrative 4% withdrawal rate, £152,000 gives you £507 a month.
Your private pension income
£507
per month
2026 spending benchmarks outside London. Rent and mortgage payments are extra; household bills and basic maintenance are included. Illustrative 2026/27 England, Wales and Northern Ireland income tax; pension income only, fully taxable, no tax-free withdrawals or other allowances. Scottish tax differs.
Illustrative annual spending after tax
£6,080 private + £12,548 State Pension before tax
2026 Retirement Living Standards
Short by £15,284/yr
Short by £27,984/yr
−£15,284
Annual shortfall vs a moderate retirement
Women retire with 43% less
The pension gap between men and women widens with every decade. Part-time work, caring responsibilities, and the pay gap compound into a retirement crisis for women.
£196,000
Average man, 60–65
£112,000
Average woman, 60–65
Auto-enrolment changed everything
Before 2012, barely half of eligible workers had a workplace pension. Auto-enrolment brought 11 million people into the system– the biggest pension reform in a generation.
88%
Workplace pension participation in 2024, up from 47% in 2008
…but 8% isn't enough
The minimum auto-enrolment rate builds a pot that falls short of a moderate retirement. What does it take to close the gap?
Career from 25 to 67 on median salary (£37,430), 5% nominal growth after fees, fixed nominal contributions, 2.5% inflation, 4% withdrawal. Bars show spending after tax in today’s money. 2026 spending benchmarks outside London. Rent and mortgage payments are extra; household bills and basic maintenance are included. Illustrative 2026/27 England, Wales and Northern Ireland income tax; pension income only, fully taxable, no tax-free withdrawals or other allowances. Scottish tax differs.
Where do you stand?
Enter your age and current pension pot to see how you compare to the UK average for your age group.
You’re ahead of 46% of people aged 35–39
Targets assume no further contributions, 2.5% growth after inflation to age 67, a full State Pension and 4% fully taxable withdrawals. Illustrative England, Wales and Northern Ireland income tax is allowed for; Scottish tax differs. Rent and mortgage payments are extra.
What you can do about it
The data is what it is. These tools can help you take control.
Growth Projector
See what your pot could grow to
Project your pension to retirement with different contribution scenarios.
Salary Sacrifice
Boost contributions tax-free
See how salary sacrifice increases your take-home and pension in one move.
Retirement Readiness
Check if you’re on track
Compare your projected income against PLSA living standards.
Sources & methodology
Pension pots: ONS Wealth and Assets Survey Round 8 (April 2020–March 2022), with illustrative adjustments for auto-enrolment contributions and market growth through 2026/27. DC component isolated using ONS breakdowns and PPI analysis.
Auto-enrolment: TPR Automatic Enrolment Evaluation Reports (2012–2024) and DWP Workplace Pension Participation and Saving Trends.
Contribution projections: Modelled from age 25 to state pension age (67) using the ONS median full-time salary (£35,000), 5% nominal growth, fixed nominal contributions, 2.5% inflation, and a 4% illustrative withdrawal rate. Chart comparisons use spending after illustrative income tax in today’s money; a withdrawal rate does not guarantee sustainability.
PLSA Living Standards: Pensions UK (formerly PLSA) Retirement Living Standards 2026 for a single person outside London.
- •2026 spending benchmarks outside London. Rent and mortgage payments are extra; household bills and basic maintenance are included.
- •Illustrative 2026/27 England, Wales and Northern Ireland income tax; pension income only, fully taxable, no tax-free withdrawals or other allowances. Scottish tax differs.
- •All figures are illustrative estimates based on published survey data, not individual financial advice.
- •DC pension wealth only — defined benefit (DB) pensions are not included in pot size statistics.
- •Auto-enrolment participation data covers eligible employees in the private and public sectors.
- •Contribution projections assume constant salary and contribution rates over a full career. Real outcomes vary.
- •PLSA Retirement Living Standards assume a single person with full state pension entitlement.
This page presents illustrative statistics and is not financial advice. Individual pension outcomes vary enormously based on contribution history, investment choices, fees, and market conditions.
For personalised guidance on your pension, speak to an FCA-regulated financial adviser. You can find one via Unbiased or VouchedFor.