Am I Saving Enough for Retirement?

Written and reviewed by Kris Dabner, Chartered Financial Planner. Last reviewed October 2026.

How to read this result

This compares the retirement income you said you would like with what your pensions might provide, using the assumptions in the calculator. It is a projection rather than a promise, and it is general information rather than advice.

A projection like this cannot see your whole picture. Other savings and investments, changes to what you pay in, and the tax you pay when you draw an income all change the answer. Investment returns and inflation will not follow a straight line either.

A shortfall today is not a verdict. Paying in more, retiring slightly later, or drawing income in a different order can each close a gap. Our pension advice in Kent page explains how we approach it.

How much pension do I need to retire?

It depends on what you want to spend, not on a percentage of your salary. A useful starting point is the Retirement Living Standards from Pensions UK, which estimate what three different lifestyles cost each year.

Spending a year, after tax. Figures shown on the Retirement Living Standards website, checked October 2026. They assume you own your home outright.

These are spending figures, so the income you need before tax is higher. Your own number may be lower if your mortgage will be paid off and your children are independent, or higher if you plan to travel, help family or pay rent.

What the State Pension covers

The full new State Pension is £241.30 a week in 2026/27, about £12,548 a year. You usually need 35 qualifying years of National Insurance to get the full amount, and fewer years mean less. State Pension age is rising from 66 to 67 between 2026 and 2028. You can get your State Pension forecast on GOV.UK.

Using the State Pension box in the calculator

• Enter your own forecast. The box starts at £12,548, the full amount. Replace it with your forecast figure if you expect less.
• Retiring before State Pension age? The calculator counts the State Pension from the retirement age you enter. If you plan to stop work at 60, you will need to fund the years until it starts from your own savings, so the real gap is bigger than the result shows. Try entering £0 for the State Pension to see those early years.

A worked example

Illustration only. Jane Example is 45 and wants to retire at 67. She has £80,000 across her pensions, pays in £250 a month (gross) and her employer adds £200 a month. She would like £30,000 a year in today’s money and expects the full State Pension, so she enters £12,548. Everything else is left at the calculator’s standard assumptions.

• Projected pot at 67: about £259,000 in today’s money.
• Projected income: about £22,900 a year, including the State Pension.
• Shortfall: about £7,100 a year.
• To close it: about £554 a month more, from now until retirement.

Paying in £400 a month instead of £250 cuts the shortfall to about £5,200 a year. Returns are not guaranteed, and the result changes with every assumption.

The 4% figure

The calculator turns your pot into an income by assuming you draw 4% of it each year. That is a rough rule of thumb, not a guaranteed or safe level. Drawing too much, or drawing heavily after a fall in markets, can run a pot down faster than expected. An annuity gives a guaranteed income for life instead, at the cost of flexibility. Our guide to pension drawdown vs annuity compares the two.

Ways to close a gap

• Pay in more. Pension contributions get tax relief: a basic-rate taxpayer’s £80 becomes £100 in the pension, and higher-rate taxpayers can claim more back. The trade off is less take-home pay today, and you cannot usually draw a pension before 55 (rising to 57 from April 2028).
• Use your employer. Check whether your employer will match higher contributions. Salary sacrifice, where offered, can also save National Insurance, although the rules on that are changing, so check the current position.
• Find old pensions. The Pension Tracing Service can help. Whether to combine them is a separate question, covered in should I consolidate my pensions?
• Check what you pay in charges. The calculator’s fee box shows how much a difference of half a percent makes over 20 years.
• Retire in stages, or a year or two later. More years of saving and fewer years of drawing both help.
• Count your other savings. ISAs and other investments can pay for some of your retirement, often with more flexibility.

If you have a defined benefit (final salary) pension, take its expected income off your target before you use the calculator. We plan around defined benefit pensions; we do not advise on transferring out of them.

Frequently asked questions

How much pension do I need to retire comfortably in the UK?

Pensions UK puts a comfortable retirement at about £45,400 a year after tax for one person and £62,700 for a couple, on the figures shown in October 2026. The State Pension covers part of that, and the rest has to come from pensions and savings. Your own figure depends on what you plan to spend.

How much pension do I need to retire at 60?

More than at 67, because the State Pension will not start until 66 or 67 depending on your date of birth. Your savings have to pay all of your income for those first years, and then last for longer overall. Run the calculator with the State Pension set to £0 to see the early years on their own.

What is a pension shortfall?

It is the gap between the income you would like in retirement and the income your pensions and State Pension are projected to provide. The calculator shows it in today’s money, so it is not shrunk by future inflation.

Does the calculator include the State Pension?

Yes, using the figure you enter. It counts it from your chosen retirement age, so if you retire before State Pension age the result will look better than reality for those years.

Is drawing 4% a year safe?

Not necessarily. It is a common rule of thumb rather than a guarantee. The right level depends on your age, investments, other income and how long your money needs to last.

If you would like to talk your own numbers through, the first conversation is free and carries no obligation. See how our fees work.

The information on this page is for information purposes only and does not constitute individual financial advice. Figures are for the 2026/27 tax year. Pensions are a long-term investment. You may get back less than you put in. Pensions can be and are subject to tax and regulatory change; therefore, the tax treatment of pension benefits can and may change in the future. The value of investments may fall as well as rise. You may get back less than you originally invested. THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAXATION ADVICE.