{"id":23224,"date":"2025-11-24T16:18:21","date_gmt":"2025-11-24T16:18:21","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/how-much-do-i-need-save-retirement\/"},"modified":"2026-05-28T00:30:30","modified_gmt":"2026-05-28T00:30:30","slug":"how-much-do-i-need-save-retirement","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/how-much-do-i-need-save-retirement","title":{"rendered":"How much do I need to save for retirement?"},"content":{"rendered":"\n<p>If you\u2019re approaching retirement, one of the biggest questions you\u2019re likely to have is, \u201cHave I saved enough?\u201d<\/p>\n\n\n\n<p>There\u2019s no golden rule for how much money you\u2019ll need in <a href=\"https:\/\/www.rbcwealthmanagement.com\/en-uk\/private-clients\/our-services\/pensions-and-retirement-planning\" class=\"link-underline\">retirement<\/a>, as much will depend on when you retire, what you plan to do in retirement, and how long you live. However, having a rough idea of how much income the average retiree needs, and <a href=\"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/avoid-biggest-retirement-income-pitfalls\" class=\"link-underline\">how to generate it<\/a>, is a good place to start.<\/p>\n\n\n\n<table align=\"center\" border=\"0\" cellpadding=\"10\" cellspacing=\"1\" style=\"width: 90%\">\n<tbody>\n<tr>\n<td>&nbsp;<\/td>\n<td>&nbsp;<p><\/p>\n<hr><\/td>\n<td>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/td>\n<td>\n<h5>Download: A guide to saving for retirement<\/h5>\n<p>Jam-packed with essential information on how to enjoy a more comfortable life after work.<\/p>\n<p><strong><a class=\"link-underline\" href=\"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/a-guide-to-saving-for-retirement\">Download now<\/a><\/strong><\/p>\n<hr><\/td>\n<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;<\/td>\n<td>&nbsp;<\/td>\n<td>&nbsp;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-do-i-need-for-a-comfortable-retirement\">What do I need for a \u2018comfortable\u2019 retirement?<\/h2>\n\n\n\n<p>Research by the Pensions and Lifetime Savings Association suggests that to fund a \u2018comfortable\u2019 retirement, the average single person would need \u00a343,900 a year and the average couple would need \u00a360,600 a year (after tax)<sup>1<\/sup>.<\/p>\n\n\n\n<p>According to our own research, a 66-year-old retiring with a \u00a31m pension who opts for income drawdown could draw a gross income of up to \u00a360,600 a year until age 86. This assumes annual investment growth of 5% after fees and that the income increases annually with 2%&nbsp;inflation. The same 66-year-old could draw around \u00a350,000 a year until age 95.<\/p>\n\n\n\n<p>If their pension pot was worth \u00a3500,000, the corresponding figures would be \u00a331,500 a year and \u00a325,000 a year, respectively.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-much-income-would-an-annuity-provide\">How much income would an annuity provide?<\/h2>\n\n\n\n<p>An individual who buys an <a href=\"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/now-good-time-buy-annuity\" class=\"link-underline\">annuity<\/a>&nbsp;at age 66 could expect gross retirement income of around \u00a363,000 gross annual retirement income from a \u00a31m pension fund or up to \u00a331,000 a year from a \u00a3500,000 pension fund<sup>2<\/sup>.<\/p>\n\n\n\n<p>Annuity income is guaranteed for life, so you would receive the same annual income regardless of how long you live for. With income drawdown, the value of your pension pot could go down as well as up, and there\u2019s a risk you\u2019ll run out of money if you live longer than you plan for. Bear in mind that income drawdown enables you to vary your income to suit your lifestyle, whereas annuity income is fixed.<\/p>\n\n\n\n<p>It\u2019s also possible to take a \u2018mix-and-match\u2019 approach, for example buying an annuity to generate income for essential expenditure and using income drawdown for discretionary spending.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-think-beyond-your-pension\">Think beyond your pension<\/h2>\n\n\n\n<p>It\u2019s worth bearing in mind that income in retirement can <a href=\"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/why-retirement-is-more-than-just-a-pension\" class=\"link-underline\">come from other sources<\/a>, not just your pension. So, if your pension pot isn&#8217;t as big as it needs to be, you might be able to supplement your income with other savings and investments.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/four-reasons-to-invest-in-an-isa-this-year\" class=\"link-underline\">ISAs<\/a>, for example, can be a valuable source of retirement income. Although ISAs don&#8217;t benefit from tax relief on contributions, withdrawals are completely free from tax. This means ISAs can provide a substantial tax-efficient income that can allow you to leave your pension fund untouched in your first years of retirement, potentially giving it longer to grow.<\/p>\n\n\n\n<p>Under the current rules, ISAs form part of your estate when calculating your inheritance tax (IHT) bill, whereas pensions fall outside your estate, so can be passed onto loved ones free of IHT. However, the chancellor announced in the 2024 Autumn Budget that unused pension and death benefits will be considered part of a person\u2019s estate for IHT purposes from 2027. This may affect how you wish to plan for retirement or passing on your wealth to loved ones, so you may wish to speak to a wealth manager or tax adviser.<\/p>\n\n\n\n<p>Other income sources to consider include cash savings accounts, shares, bonds and property income, as well as the state pension, which is \u00a3230.25 per week for those who qualify for the full rate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-next-steps\">Next steps<\/h2>\n\n\n\n<p>Determining how much money you need to save for retirement is no easy feat. A wealth manager will help you decide whether your pot is big enough, explain how to make up a shortfall, and advise on the most suitable way of accessing your pension, based on your individual circumstances.<\/p>\n\n\n\n<p>Taking some <a href=\"https:\/\/www.rbcwealthmanagement.com\/en-uk\/private-clients\/our-services\/financial-planning-and-advice\" class=\"link-underline\">financial advice<\/a> will help you feel confident you\u2019re on track for a more secure financial future, so you can concentrate on enjoying life today. Let our ideas help you plan for the future with confidence.<\/p>\n\n\n\n<p>Find out more from our dedicated support team by calling us on 020 7246 1111. Opening hours are Monday to Friday 9am to 5pm.<\/p>\n\n\n\n<div>\n<hr size=\"1\">\n<div id=\"ftn1\">\n<p><sup>1<\/sup>&nbsp;<a class=\"link-underline\" href=\"https:\/\/www.retirementlivingstandards.org.uk\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.retirementlivingstandards.org.uk\/<\/a><br> <sup>2<\/sup>Annuity assumptions: single life, monthly in advance, no guarantee period, 2% indexation, non-smoker, standard (healthy) rates, payable for life. Quotes obtained from Iress on 27  October 2025.<\/p>\n<div>\n<div id=\"ftn2\">\n<hr>\n<p><strong>The value of investments, and any income from them, can fall and you may get back less than you invested. This does not constitute tax or legal advice. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. You should always check the tax implications with an accountant or tax specialist. Neither simulated nor actual past performance are reliable indicators of future performance. Information is provided only as an example and is not a recommendation to pursue a particular strategy. Information contained in this document is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. Forecasts are not a reliable indicator of future performance.\n<\/strong><\/p>\n<p><\/p><\/div>\n<hr>\n<table align=\"center\" border=\"0\" cellpadding=\"10\" cellspacing=\"1\" style=\"width: 90%\">\n<tbody>\n<tr>\n<td>&nbsp;<\/td>\n<td>&nbsp;<p><\/p>\n<hr><\/td>\n<td>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/td>\n<td>\n<h5>Get financial planning tips straight to your inbox<\/h5>\n<p>Sign up to our newsletter for expert insights on investing for the future, saving for retirement, passing on assets to the next generation, and much more.<\/p>\n<p><strong><a class=\"link-underline\" href=\"https:\/\/www.rbcwealthmanagement.com\/en-uk\/subscribe-to-our-newsletter\">Subscribe<\/a><\/strong><\/p>\n<hr><\/td>\n<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/td>\n<\/tr>\n<tr>\n<td>&nbsp;<\/td>\n<td>&nbsp;<\/td>\n<td>&nbsp;<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p><\/p><\/div>\n<p><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Find out what size pension the average retiree needs to fund a comfortable retirement, with tips on how to generate income.<\/p>\n","protected":false},"author":97,"featured_media":11882,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"rbcwm_post_date":"","editor_notices":[],"rbc_url_alias":"","rbcbd_featured_desktop_image_position":"","rbcbd_featured_mobile_image_position":"","footnotes":"","jetpack_post_was_ever_published":false},"categories":[324],"tags":[],"rbcwm_content_owner":[],"rbcwm_need":[768,770,769],"rbcwm_segment":[792,772],"rbcwm_solution":[758],"rbcwm_topic":[108],"rbcwm_channel":[99,781],"rbcwm_format":[779],"class_list":["post-23224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement","rbcwm_need-grow","rbcwm_need-live-well","rbcwm_need-secure","rbcwm_segment-corporate-executives","rbcwm_segment-individuals","rbcwm_solution-wealth-planning","rbcwm_topic-pensions-and-retirement","rbcwm_channel-private-clients","rbcwm_channel-uk-individual","rbcwm_format-article"],"acf":{"rbc_ct_service":"s2","rbc_ct_theme":"s2_th1","rbc_ct_topic":"s2_th1_ta1","rbcwm_subtitle":"Find out what size pension the average retiree needs to fund a comfortable retirement, with tips on how to generate income.","rbcwm_post_author":"","rbcwm_custom_breadcrumb_text":"","rbcwm_custom_breadcrumb_link_url":"","rbcwm_disclaimers":{"add_disclosures":"","perspective_disclaimer":"","expandable":"","omit_from_pages":"","disclaimer_footnote":""},"rbcwm_insight_cta_id":"","rbcwm_pagination":{"next_link":"","next_link_text":"Next article","previous_link":"","previous_link_text":"Previous article"},"rbcwm_video_duration":"","article_time":3,"rbcwm_enable_toc":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How much do I need to save for retirement? | RBC Wealth Management United Kingdom<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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