PLSA retirement living standards — what they actually mean.
The 2026 spending benchmarks for one and two people, and how to compare them with pension income after tax.
- ▸One person: £13,900 minimum, £32,700 moderate or £45,400 comfortable annual spending.
- ▸These are spending budgets after tax, not gross pension income or guaranteed retirement targets.
- ▸2026 spending benchmarks outside London. Rent and mortgage payments are extra; household bills and basic maintenance are included.
- ▸Allow for your actual State Pension entitlement, tax, housing and other household needs before working back to a pension pot.
The three standards
Pensions UK, formerly the Pensions and Lifetime Savings Association (PLSA), publishes Retirement Living Standards based on research by Loughborough University. They provide concrete budgets to help people discuss the retirement lifestyle they want.
Minimum covers everyday needs with some room for leisure. Moderate allows more financial flexibility and lifestyle choices. Comfortable allows more freedom for leisure and discretionary spending. These are reference budgets: your own spending may be different.
Single vs couple: the 2026 figures
| Standard | One person | Two people, combined |
|---|---|---|
| Minimum | £13,900 | £22,500 |
| Moderate | £32,700 | £45,400 |
| Comfortable | £45,400 | £62,700 |
2026 spending benchmarks outside London. Rent and mortgage payments are extra; household bills and basic maintenance are included. Pensions UK update, 3 June 2026; checked 11 September 2026.
Two people share some household costs, so their combined budget is less than twice the one-person figure. London has separate, higher benchmarks; the figures and calculators on this page use those for outside London.
What the standards include and exclude
The figures represent money available to spend after income tax. They include household bills and basic maintenance, but exclude rent and mortgage payments. Add your expected housing payments to the budget if you will still have them in retirement.
Care costs and extra needs such as supporting dependants require separate provision. Review the official detailed budgets against your circumstances instead of assuming a benchmark covers every possible expense.
Working back to a pension pot
First estimate the gross income needed to provide your spending budget after tax. Then deduct any State Pension or other secure income. Dividing the remaining gross pension income by an illustrative withdrawal rate gives a starting pot estimate.
Simply subtracting the State Pension from a spending target misses the tax on private pension income. The following examples assume one full new State Pension, payable throughout the period being compared, and fully taxable private pension withdrawals.
| Standard | Spending after tax | Total gross income needed | Pot at 4% | Pot at 3.5% |
|---|---|---|---|---|
| Minimum | £13,900 | £14,233 | £42,113 | £48,129 |
| Moderate | £32,700 | £37,733 | £629,613 | £719,557 |
| Comfortable | £45,400 | £54,720 | £1,054,300 | £1,204,914 |
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. The whole pot remains invested: no upfront tax-free lump sum is deducted. Withdrawal rates are illustrations, not guaranteed sustainable income or annuity quotes. Income tax rates and allowances.
These examples use current tax bands and today's money. Tax-free withdrawals can reduce the gross income needed, while taking a lump sum upfront reduces the pot left to provide income. A different tax jurisdiction, other income or incomplete State Pension entitlement changes the result. Check your State Pension forecast.
A withdrawal rate does not guarantee that a pot lasts. Investment returns, fees, inflation, retirement length and the sequence of returns all matter. Retiring before State Pension age also requires funding the years before it starts.
For two people, tax depends on who owns the pensions. Our standards calculator assumes a combined pot owned equally and a full State Pension for each person. A household with most income in one person's name can have a different tax bill.
Apply the figures to your retirement
Start with your actual expected household spending, then use the standards as a sense check. Compare all income on an after-tax basis and in the same year's money.
The PLSA standards calculator projects a pot in today's money. The £300,000 pension pot guide gives a worked example, while the drawdown calculator helps explore how withdrawals affect a pot over time.
This is general information, not a personal recommendation.