Pension Bible
Retirement planning

Can you retire at 70?

Retiring at 70 means your state pension has been paying out for 3 years already. With fewer years of drawdown ahead, you need a smaller pot — but you also had fewer years to build it.

Pot needed to retire at 70
Getting by
£13,900/yr spending after tax
£28,637
Living well
£32,700/yr spending after tax
£428,137
Enjoying life
£45,400/yr spending after tax
£716,924
Assumes full state pension (£12,548/yr) from age 67 and retirement lasting to age 87, with no investment growth during retirement. Targets allow for illustrative income tax on fully taxable withdrawals.
Gross income budget for a moderate-target pot (£428,137)
From age 70
£37,733/yr
£25,185 private income + £12,548 state pension
= £726/week
Monthly savings needed to retire at 70
Starting from £0. If you already have a pot, you need less. Assumes 5% nominal growth minus 0.75% fees, adjusted for 2.5% inflation; contributions rise with inflation.
Start saving atGetting byLiving wellEnjoying life
Age 25 (45yr)£36/mo£528/mo£884/mo
Age 30 (40yr)£42/mo£623/mo£1,043/mo
Age 35 (35yr)£50/mo£746/mo£1,249/mo
Age 40 (30yr)£61/mo£912/mo£1,527/mo
Age 45 (25yr)£77/mo£1,146/mo£1,918/mo
Age 50 (20yr)£101/mo£1,498/mo£2,509/mo
Are you on track to retire at 70?

These targets assume starting from zero. Your situation is different. Check your personalised retirement readiness score.

Retiring at 70 — what to consider

Retiring at 70 means working beyond the current state pension age of 67. While not everyone chooses this, those who do benefit from several compounding advantages: 3 extra years of contributions, 3 extra years of investment growth, and 3 fewer years of drawdown.

Each year you delay retirement has a triple benefit — more goes in, more time to grow, less time to spend it. Working even 2–3 years beyond 67 can increase your sustainable retirement income by 20–30%, which can be the difference between a minimum and moderate retirement.

If you're working past 67 not by choice but because your pot isn't large enough, focus on maximising the final years: increase contributions, ensure you're getting the employer match, and check that your investments aren't in an overly cautious "lifestyle" fund that de-risks too early. You should also check whether you can defer your state pension — each year of deferral increases the annual payment by approximately 5.8%.

Things to consider
  • •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.
  • •The target sums annual gross income needs to age 87 with zero investment growth during retirement. It is a simplified finite-horizon budget, not a 4% rule pot or a guarantee.
  • •Target pots use the PLSA Retirement Living Standards (2026 single-person spending outside London, excluding rent and mortgage payments). Your actual needs depend on housing costs, health, location, and lifestyle preferences.
  • •The state pension gap calculation assumes zero state pension before age 67. If you have a deferred state pension or other guaranteed income, your required pot may be lower.
  • •Monthly contribution estimates assume 5% nominal growth, 0.75% annual fees, and starting from £0. If you already have a pot, you need less.
  • •Figures are in today's money with 2.5% inflation. Contributions rise with inflation. Spending targets are grossed up for illustrative 2026/27 England, Wales and Northern Ireland pension income tax; withdrawals are fully taxable and Scottish tax differs.
  • •The minimum pension access age is 55, rising to 57 from April 2028. You cannot access a defined contribution pension before this age without exceptional circumstances.
  • •This is general information, not personal financial advice. For personalised guidance speak to an FCA-regulated financial adviser.

Estimates use 2026/27 tax rates. 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.

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