Retirement: How much might you need?

While there’s no universal answer, the Pensions and Lifetime Savings Association (PLSA) has developed a helpful framework to give people a clearer idea of what different retirement lifestyles might look like financially. These are known as the Retirement Living Standards, and they’re designed to offer a practical, relatable benchmark—not financial advice.

At SPW, we believe in empowering people with clear, practical information. So let’s take a closer look at what these standards mean, how they’re structured, and how they might help you start thinking about your own retirement goals.

The PLSA Retirement Living Standards were created to help people visualise what retirement might cost depending on the kind of lifestyle they want to lead. They’re based on detailed research into real-world spending patterns and expectations, and they’re updated regularly to reflect inflation and changes in living costs.

The standards are broken down into three lifestyle tiers:

• Minimum – Covers the basics with a few modest extras.
• Moderate – Offers more financial flexibility, including a car, some holidays abroad, and more frequent dining out.
• Comfortable – Supports a more luxurious lifestyle with long-haul travel, regular leisure activities, and greater financial security.

Each tier includes assumptions about housing, food, transport, holidays, clothing, and social spending—making it easier to visualise what each lifestyle might feel like.

Importantly, the figures below represent annual costs for a two-person household. If you’re planning for yourself or a different household setup, you’ll need to adjust accordingly.

This level covers the essentials with a few modest comforts. It assumes no car, relying on public transport and occasional taxis. Weekly groceries come in at just over £100, with a small monthly budget for takeaways and meals out.

Holidays are UK-based—typically one week away—and leisure activities are low-cost, like streaming services and a weekly class or club. Clothing and personal items are capped at £450 per person per year, and gift-giving is modest—£20 per occasion for birthdays and Christmas.

Home maintenance is DIY, with a £200 annual budget. Entertainment includes a TV licence, broadband, and one streaming subscription. Weekly leisure activities are budgeted at £8 per person.

This lifestyle prioritises simplicity and practicality. It’s about covering the basics while still enjoying a few small pleasures.

Here, there’s more flexibility and room to enjoy life. A small car is included, replaced every seven years, with running costs of around £2,200 annually. Holidays expand to include a fortnight-long all-inclusive trip to Europe, a UK break, and a few weekend getaways.

Dining out becomes more regular, with monthly meals out and weekly takeaways. Leisure activities are budgeted at around £43 per week, allowing for hobbies, memberships, and entertainment.

Home maintenance is more robust, with a £500 annual spend and a £300 contingency fund. Clothing and personal care budgets increase to around £1,550 per person annually, and gifts are more generous—£30 per occasion.

This lifestyle balances enjoyment with financial awareness. It allows for more spontaneity and comfort, while still keeping an eye on the budget.

At this level, retirement offers greater freedom and choice. Grocery and dining budgets rise, with more frequent meals out and higher-quality food. Holidays are more frequent and varied, including long-haul travel and multiple breaks throughout the year.

Leisure activities are well-funded—think hobbies, memberships, entertainment, and cultural outings. Weekly spending on leisure is significantly higher than the moderate tier, allowing for a richer and more varied lifestyle.

Transport includes a newer car with higher running costs, and home maintenance is well-supported with a larger contingency fund. Clothing and personal care budgets are generous, and gift-giving reflects a higher level of disposable income.

This lifestyle is about living well, with fewer compromises. It’s for those who want to make the most of their retirement years, with the financial freedom to do so.

These figures are indicative only. Everyone’s retirement needs are different, and what feels “comfortable” to one person may feel “moderate” to another. Your own spending will depend on your health, housing situation, location, and personal preferences.

The PLSA standards are not financial advice—they’re a starting point. A way to reflect on what matters most to you and how you might plan for it.

For example, if you own your home outright, your housing costs may be lower. If you plan to travel extensively, your budget may need to be higher. If you have dependents or health considerations, those will also affect your financial needs.

The PLSA Retirement Living Standards are a helpful tool for anyone thinking about retirement. They give you a framework to consider:

• What kind of lifestyle do I want in retirement?
• How much might I need to save to support that lifestyle?
• Am I on track—or do I need to adjust my plans?

They’re especially useful when used alongside personalised financial planning, helping you to set goals and make informed decisions.

At SPW, we use these standards as part of our broader conversations with clients. They help bring clarity to what can often feel like an overwhelming topic. And they make it easier to talk about retirement in real, tangible terms. 

The PLSA standards offer a helpful starting point for thinking about your future. That said, we always recommend seeking personalised financial advice to make sure you're on track to achieve your financial and life goals.

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This article is for information only and is not a personal recommendation. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Pensions are a long-term investment. The retirement benefits you receive from your pension plan depend on a number of factors including the value of your plan when you decide to take your benefits, which isn’t guaranteed, and can go down as well as up. The benefits of your plan could fall below the amount(s) paid in.

Always seek a professional opinion as tax rules can be complex, depend on individual circumstances and are subject to change.

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In preparing this article we have used third party sources which we believe to be true and accurate as at the date of writing but can give no assurances or warranty regarding the accuracy, currency or applicability of any of the contents in relation to specific situations and particular circumstances.

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