Question 1

What are the PLSA Retirement Living Standards?

Accepted Answer

The PLSA Retirement Living Standards are three income benchmarks — minimum (£14,400/year for an individual), moderate (£31,300), and comfortable (£43,100) — published by the Pension and Lifetime Savings Association. They describe the lifestyle each income level supports, from covering essentials to enjoying regular holidays and a new car. Figures are for 2025/26 and assume no mortgage in retirement.

Question 2

How much pension do I need for a comfortable retirement?

Accepted Answer

According to the PLSA, a comfortable retirement for an individual requires around £43,100/year (or £59,000 for a couple) in 2025/26. After deducting the full State Pension of £11,973, you need roughly £31,100/year from private pensions. At a 4% drawdown rate, that means a pot of approximately £778,000. For a moderate lifestyle (£31,300/year), you need a pot of roughly £483,000.

Question 3

Does the State Pension count toward the PLSA standards?

Accepted Answer

Yes. The PLSA standards represent total retirement income from all sources. The full new State Pension is £11,973/year (2025/26), which already covers most of the minimum standard for an individual. The gap between the State Pension and higher standards is what your private pension needs to fill.

Question 4

Are the PLSA standards realistic for someone with a mortgage?

Accepted Answer

No — the PLSA figures explicitly assume you have no mortgage or rent payments in retirement. If you'll still be paying a mortgage or renting, you'll need a significantly higher income than these benchmarks suggest. The PLSA recommends adding your expected housing costs on top of the standard figures.

What will your retirement look like?