Three quarters of workers not on track for 'moderate' pension income

04 Jun 2026

Three quarters of UK workers are not on course to save enough for a 'moderate' lifestyle when they retire, according to a report by Pensions UK.

The report says a moderate lifestyle will cost £32,700 for one person and £45,400 for two - but estimated just 23% of the working population were on course to reach such a level.

According to the report, a basic retirement lifestyle costs around £13,900 annually for a one-person household and £22,500 for two people.

Meanwhile, a comfortable lifestyle in retirement is estimated to cost £45,400 for a single person and £62,700 for a couple. Pensions UK said only 9% of workers were in line to get to that level.

Zoe Alexander, Executive Director of Policy and Advocacy at Pensions UK, said: 'Today's saving levels will not be enough for the retirement they expect. It is expected that around 82% of people reaching a minimum standard of living, but far fewer will go beyond that.

'That is out of step with what people expect for their future. Without action, too many risk facing a cliff-edge drop in income when they stop work. The government is right to be considering whether minimum contributions need to rise through the work of the Pensions Commission.

'We also encourage people to speak to their employer and see whether the organisation is prepared to support them to save above the minimum, such as higher rates of matching pension contributions. This could help 'bridge the gap' until policy catches up and we see higher savings levels set in legislation.'