Meanwhile, the Moderate and Comfortable standards have risen modestly, reflecting the impact of inflation across many expenditure categories offset by decreases in energy costs.
This year, the cost of a Minimum Retirement Living Standard for a one-person household has decreased by £1,000 per year to £13,400, while for a two-person household, it is £21,600. These changes are primarily due to a substantial reduction in energy costs and some small spending adjustments made to the living standard by research participants.
Calculated by the Centre for Research in Social Policy at Loughborough University on behalf of the PLSA, the RLS describe the cost of three different retirement lifestyles: Minimum, Moderate, and Comfortable. The research is based on multiple in-depth discussion groups with members of the public from across the UK.
Across all retirement living standards, the weekly domestic fuel budgets have fallen by more than a quarter since the 2023/2024 RLS update:
- For a two-person household at the Minimum, the fuel budget has fallen by £12.44 per week, making up a significant part of the total decrease.
- For one-person households, the drop is £8.82 per week.
- At the Moderate and Comfortable levels, energy costs are also lower – falling by £16.74 and £15.38 per week respectively for two- and one-person households.
Research discussion groups for the Minimum standard also reported some small changes in what they need for a minimum standard of living, clothing, hairdressing, technology purchases, taxi use, and charitable giving. However, participants agreed that the budget for rail travel would need to rise, reflecting higher rail fares and a need to travel further by rail, with annual rail fare budgets rising from £100 to £180 per person.
Moderate and Comfortable standards have increased slightly, in line with inflation. The new figures are:
| 2024/2025 update | One-person | Two-person |
| COMFORTABLE | £43,900 | £60,600 |
| MODERATE | £31,700 | £43,900 |
| MINIMUM | £13,400 | £21,600 |
NEW LANGUAGE BETTER REFLECTS MODERN RETIREMENT LIVING
This year also sees a change in how living arrangements are described in the Standards. The terms “one-person” and “two-person” households have replaced “single” and “couple” to recognise that not everyone in retirement lives with a romantic partner – but many do share their housing and many living costs with someone. Within the spending categories, the specific breakdown of costs and how they are shared will vary from household to household and users of the RLS are encouraged to map their own circumstances onto the research.
A recent PLSA survey found that most people today already live with others:
- 75% live with a member of their family (spouse, children, parents, other relatives)
- Just 22% live alone
- 3% say they live with someone other than a family member
And when looking ahead to retirement:
- 77% of non-retired people expect to live with a someone else in retirement
- Only 23% expect to live alone
Importantly, when asked who they’d be willing to live with in retirement to help share costs like housing and bills, only 12% of people said “nobody” and wanted to live alone. This shows widespread openness to shared living - including the possibility of roommates and house shares.
Zoe Alexander, Director of Policy and Advocacy at the Pensions and Lifetime Savings Association, said; “We’re not just seeing changes in costs, we’re seeing changes in how retirees live. Retirement isn’t a one-size-fits-all experience. The Standards recognise that retirees can share costs, often with a partner, and that can make a huge difference to affordability in later life.”
RETIREMENT LIVING IS PERSONAL, NOT PRESCRIPTIVE
The RLS remain a guide to the costs of living in retirement, not a fixed savings target. Those making use of the Standards as a planning tool are encouraged to tailor them to their lifestyle, combining aspects from different levels.
Zoe Alexander, Director of Policy and Advocacy at the Pensions and Lifetime Savings Association, said; “For many, retirement is about maintaining the life they already have not living more extravagantly or cutting back to the bare essentials.”
“The Standards are designed to help people picture that future and plan in a way that works for them.”
The role of the State Pension also remains vital, particularly for those at the Minimum level. A two-person household who are both in receipt of a full new State Pension (worth £11,973 per person, or £23,946 combined in 2025/26) will be able to meet the costs of the Minimum Standard.
In addition, many people want to understand more than just the cost of retirement – they also want to know how big their pension pot might need to be to achieve that lifestyle.
The chart below gives an approximate guide to the level of annual private income or pension savings that might be required to meet each Standard based on converting a defined contribution balance into an annuity during April 2025. It also assumes you're receiving the full State Pension and have no rent or mortgage costs. Of course, there are many ways to draw on pension savings so this guide should be treated as indicative only.
TWO-PERSON HOUSEHOLD
| Retirement Living Standard | Annual Expenditure (Two-Person) | State Pension* (per person) | Pot Income Pre-Tax (per person) | Total Income Pre-Tax (per person) | Total Income Post Tax (per person) | Approx Fund Size Required (per person) if Purchasing an Annuity** |
| COMFORTABLE | £60,600 | £11,975 | £22,758 | £34,733 | £30,300 | £300k-460k |
| MODERATE | £43,900 | £11,975 | £12,320 | £24,295 | £21,950 | £165-250k |
| MINIMUM | £21,600 | £11,975 | - | £11,975 | £11,975 | £0 (fully covered by the state pension) |
*Full state pension for 2025-26
**Rounded illustrative indicative figures based on annuity rates ranging from £5,000 to £7,500 per £100,000. Rates vary according to the type of product and saver circumstances including location and health. Provided as an illustration only, annuity rates change frequently.
ONE-PERSON HOUSEHOLD
| Retirement Living Standard | Annual Expenditure | State Pension* | Pot Income Pre-Tax | Total Income Pre-Tax | Total Income Post Tax | Approx Fund Size Required if Purchasing an Annuity** |
| COMFORTABLE | £43,900 | £11,975 | £40,245 | £52,220 | £43,900 | £540k-800k |
| MODERATE | £31,700 | £11,975 | £24,508 | £36,483 | £31,700 | £330k-490k |
| MINIMUM | £13,400 | £11,975 | £1,632 | £13,608 | £13,400 | £20k-3k |
*Full state pension for 2025-26
**Rounded illustrative indicative figures based on annuity rates ranging from £5,000 to £7,500 per £100,000. Rates vary according to the type of product and saver circumstances including location and health. Provided as an illustration only, annuity rates change frequently.
These estimates help people understand what kind of savings might be needed — and highlight how sharing costs as a two-person household makes achieving higher standards more attainable.
Professor Matt Padley, Co-director of the Centre for Research in Social Policy at Loughborough University, said; “Our research on what the public agree is needed in retirement at these three different levels continues to track changes in expectations, shaped by the broader economic, social and political context. The consequences of the cost-of-living challenges over the past few years are still being felt, and we’ve seen some subtle changes in public consensus about minimum living standards in retirement, resulting in a small fall in the expenditure needed to reach this standard.
“In these uncertain times, planning in concrete ways for the future is ever more important, and the RLS help people to think in more concrete ways about what they want their retirement to look like, and how much they will need to live at this level.”
Zoe Alexander, Director of Policy and Advocacy at the Pensions and Lifetime Savings Association, said; “Automatic enrolment sets pension contributions at 8%, which is a solid starting point - especially if you begin early. But for many, saving 12% or more offers a better chance of reaching the retirement they expect. While defaults may rise in the future, it’s important for savers to consider whether 8% will be enough for their goals.
“Everyone’s situation is different, and contributions should be manageable. But if your circumstances improve, even small increases can make a big difference to your future.
“This year’s findings show that costs can go down as well as up. But planning matters more than ever. Whether you're on your own or sharing your future with someone else, these Standards are here to help savers picture and plan their retirement – with real figures, real choices and real flexibility.”
We would like to thank our Friends of the Retirement Living Standards who support us in establishing the RLS, these organisations help fund the necessary further research to ensure the standards remain up to date and relevant:
Capita, JUST, LCP, L&G, Mercer, Railpen, Retirement Line, Royal London, Saul, Standard Life, TPT Retirement Solutions, Travers Smith, USS, West Midlands Pension Fund.
Stephen Lowe, group communications director at retirement specialist Just Group, said; “Most people understand that they need to save for retirement but for many they’re left with the question “How much income will I need?”. The PLSA’s Retirement Living Standards help to answer this thorny question by providing a practical guide for people. Although nothing can take the place of an individually tailored plan for retirement, this update to the Retirement Living Standards is timely and a helpful starting point for people. We’re very happy to be Friends of the Retirement Living Standards and have woven them into our own advice and guidance services – they provide a brilliant way to start a conversation with customers about the sort of retirement they want.”
George Currie, Senior Consultant at LCP, said; “The Retirement Living Standards provide an essential resource to help savers understand what standard of living they are on track to achieve in retirement and play a role in encouraging them to make positive savings decisions that could result in them achieving a higher income in later life.
“It is welcome to see that the changes to the Standards in the latest round of updates have been modest and, in particular, that the cost of the ‘Minimum’ level has reduced, both for single and two person households. This reflects the easing of recent inflationary pressures on household budgets, which is a welcome development.
“We continue to see pension providers integrate the Retirement Living Standards into their propositions, with the latest round of exciting development coming in the design of post-retirement solutions. This reflects the end-to-end benefits of the Standards and the wide range of uses they have.”
Paula Llewellyn, CEO, DC & Workplace Savings, at L&G, said; “Planning how you’ll spend your retirement years is often exciting, but working out how long your money will last can be overwhelming. The Retirement Living Standards are an indispensable tool; empowering people to make informed choices by providing some clarity on how much their preferred lifestyle might cost in later life.
“However, it’s vital to recognise there’s not a ‘one-size-fits-all’ approach to retirement. Some individuals may still be paying off a mortgage or renting, others might face the cost of long-term care, while many may choose to ease into retirement gradually, perhaps through part-time work – especially as we’re living longer. Pension contributions should be manageable, but if you find yourself able to save more, increasing them could make a big difference in the long run. That’s why it’s crucial to utilise all the appropriate tools, guidance and advice available when planning for retirement.”
Jonathan Clark, Director of Corporate Affairs at Railpen, said; “At Railpen, we’re determined to deliver for members, equipping them with the resources and information to effectively plan and manage their retirements. Since its launch in 2019, the Retirement Living Standards (RLS) has proved an incredible resource and seen the Railways Pension Scheme in particular utilise the data to support members with pre-retirement planning, including the creation of a budgeting calculator.
“With this tool our members can build on the RLS and create personalised estimates of how much they might need to meet their retirement goals, demystifying what is otherwise a large and challenging topic. The PLSA’s annual updates to the RLS ensure that our tool can remain up to date and a credible source for our members to rely on it and it has been recognised by them for its ease of use and simplicity in their annual RLS awards. We’re proud to support the PLSA with this important work.”
Mark Ormston, Director of Propositions and Corporate Partnerships at Retirement Line, said; “Each RLS is extremely helpful in providing an idea of expenditure in retirement. Pensions and pension income can feel so intangible until the point of access. The work completed on the RLS truly brings things to life.
“The minimum RLS is a useful baseline for people to use when setting up guaranteed income throughout retirement. At present, the State Pension alone is falling short of this baseline. A single person set to receive the full New State Pension of just under £12,000 per year would need an additional £1,427 to reach the minimum income standard (outside of London). At today’s standard annuity rates, people using around £20,000 of pension savings to buy a lifetime annuity (escalating at 3% a year) would make up the shortfall to guarantee the minimum RLS throughout their lifetime. Everyone’s circumstances are different of course, and many people will want to lock-in more guaranteed income, but that’s a good example of how a benchmark like the RLS can inform decision making about income options.”
Sarah Pennells, Consumer Finance Specialist at Royal London, said; “The Retirement Living Standards are invaluable in helping people to put a price on how much different lifestyles in retirement could cost them. We know that many people are not saving enough to have the lifestyle they would like in retirement, but the updated Retirement Living Standards will help pension savers understand how today’s changing living costs could affect different standards of living in retirement.
“Our workplace pension research shows that, while one in five employees with a workplace pension expect to have a minimum standard of living in retirement, over four in ten are planning on a moderate standard of living with almost four in ten hoping for a comfortable standard of living.”
“Understanding the costs of retirement enables people to see how saving into a pension can help them achieve the lifestyle that they want.”
Gail Izat, Managing Director for Workplace and Retail Intermediary at Standard Life, part of Phoenix Group said: “The PLSA’s Retirement Living Standards play a vital role in helping people picture the kind of retirement they want, and what they might need to save to achieve it. We know that saving for retirement can seem abstract and overwhelming, especially when people are facing intense financial pressure day to day. Having a clear and relatable benchmark to aim towards is important for people at all stages of life.
“The standards also help us to recognise that retirement costs aren’t equal for everyone. Our recent analysis* shows how pensioners in one-person households face a significantly higher savings requirement than those living with a partner in retirement to reach the same standard of living – highlighting the need for personalised planning and support. It’s good to see the standards updated again to reflect the constantly changing world we’re living in.
“The reality is that current minimum auto-enrolment contributions of 8% are unlikely to be enough for most people to achieve the lifestyle they hope for in retirement. The PLSA standards, alongside other tools like pension calculators and engaging communications, help savers as well as employers and the industry as we work together to support better outcomes.”
* Standard Life research highlights the cost of being single in retirement
Susie Daykin, Partner and Head of Pensions at Travers Smith, said; "Travers Smith is delighted to continue to support this important work by the PLSA to help people to plan for retirement. Adequacy of retirement incomes continues to be an important focus for our industry. And for many members, pensions can feel like an impenetrably complicated and inaccessible subject. The PLSA's updated Retirement Living Standards helps address both of these challenges by giving members meaningful information about the levels of retirement income required for different living standards in different circumstances. This can only assist both members and policymakers in understanding the issues ahead."