Most people reach their 50s with only a vague sense of what a comfortable retirement actually costs, and the answer varies widely depending on lifestyle, health, and plans. But there are useful benchmarks to start from.

How much will you need each year?

Pensions UK publishes annual guidelines on what different retirement standards actually cost. For 2025, the figures break down like this:

• Basic: essentials covered, a little left for leisure: £13,400 a year for a single person, £21,600 for a couple.
• Moderate: more security, some holidays, the occasional treat: £31,700 for a single person, £43,900 for a couple.
• Comfortable: regular holidays, a newer car, real flexibility: £43,900 for a single person, £60,600 for a couple.

Most people say they want at least a moderate lifestyle. But the annual figure is only part of the picture. The bigger question is how much you need to save to produce that income, year after year.

How long could retirement last?

The State Pension age is currently 66, rising to 67 by 2028. Retire then and live to average life expectancy, around 86 for women, 84 for men, and you’re looking at 20 years or more to fund.

Step away in your mid-to-late 50s and that window stretches to 30 years or longer. That isn’t necessarily a problem.

With a well-managed investment approach, a longer retirement can actually work in your favour, because a significant portion of your savings is likely to stay invested throughout, giving it more time to grow even as you draw an income from it.

The costs people often forget

It’s easy to focus on everyday living and overlook what tends to creep up in later life.

Healthcare is one of the biggest surprises. The NHS remains free, but many retirees spend more than they expected on dental treatment, hearing aids, glasses, and private appointments, with typical health-related spending running to around £4,000 to £5,000 a year, according to Which? research.

Home maintenance is another. Boiler replacements, roof repairs, adaptations as your needs change, each can run into thousands. A sensible rule of thumb: set aside 1% to 2% of your home’s value each year for upkeep.

Care costs are worth planning for too. The average price of residential care in England now exceeds £67,000 a year; nursing care is higher still. Not everyone will need it, but it’s worth thinking now about how you’d cover it, whether through savings, equity release, or insurance.

So how much do you actually need to save?

A simple starting point: multiply your ideal annual income by 25. A couple hoping for £44,000 a year would need roughly £1.1 million saved between them.

That sounds significant, but it comes down considerably once you factor in the State Pension. From April 2026, the full State Pension is set to rise to £12,548 per person, meaning a couple both receiving the full amount would have around £25,000 a year covered between them.

Their savings would only need to bridge the remaining £19,000, pointing to a combined pot of around £475,000. Still a meaningful target, but a far more achievable one.

The earlier you start, the easier it gets

Starting early is the single most powerful thing you can do. Someone saving from age 25 can build a healthy pot with far smaller monthly contributions than someone who starts at 45, because their money has longer to grow, and compounding works in their favour: growth building on previous growth, year after year.

If you haven’t started yet, the best time is now. Check what pension arrangements you already have, and look up your State Pension forecast on the government website.

Then speak to our team at EQ to turn those numbers into a clear plan that works for your life. Retirement may feel distant. But your future self will thank you for starting today.

Please remember, this content is provided for information purposes only. Investment involves risk. Past performance is not a guarantee or indication of future results. Investment return and the principal value of an investment may go up or down and may result in the loss of the amount originally invested. All investors should seek professional advice prior to any investment decision, to determine the risks associated with the investment and its suitability.