New research from the Centre for Research in Social Policy (CRSP) at Loughborough University, published jointly with Pensions UK, has updated the Retirement Living Standards for 2026/27. The findings are sobering: only 9% of the working population are currently on track for a Comfortable retirement, and fewer than a quarter will reach Moderate. Here is what the numbers mean — and what you can do about it.
Key takeaways
- Minimum retirement: £13,900/yr (single), £22,500/yr (couple) — housing costs excluded
- Moderate retirement: £32,700/yr (single), £45,400/yr (couple) — housing costs excluded
- Comfortable retirement: £45,400/yr (single), £62,700/yr (couple) — housing costs excluded
- Only 23% of workers are on track for Moderate; just 9% for Comfortable
- Full new State Pension is £12,548/year in 2026/27 — just above the Minimum single-person standard
- Source: Loughborough University CRSP / Pensions UK, May 2026
The Three Retirement Living Standards for 2026/27
The Retirement Living Standards give concrete, annually updated income benchmarks based on what real retirees say they need for different lifestyles. For 2026/27 the figures are:
| Standard | Single | Couple |
|---|---|---|
| Minimum | £13,900/yr | £22,500/yr |
| Moderate | £32,700/yr | £45,400/yr |
| Comfortable | £45,400/yr | £62,700/yr |
Important caveat: all three figures exclude housing costs. They assume you own your home outright in retirement with no mortgage or rent to pay. If you expect to rent in retirement, you will need significantly more income to reach each standard.
Source: Loughborough University CRSP / Pensions UK, May 2026.
The Savings Gap: Where Most People Are Heading
The research also measured what proportion of the working population are currently on track to reach each standard. The results highlight a widening gap between aspirations and reality:
- 82% of workers are on track for at least a Minimum retirement income
- 23% are on track for a Moderate retirement
- 9% are on track for a Comfortable retirement
In other words, more than three quarters of people are not saving enough for even a Moderate standard of living in retirement, and nine in ten are below the Comfortable threshold. Auto-enrolment has meaningfully improved participation, but the contribution rates most people pay — often just the statutory minimum of 8% — are not enough on their own to close the gap.
Our projection tools let you model different contribution rates, retirement ages, and investment return scenarios to see what standard of living your current trajectory is heading towards.
Where the State Pension Fits In
The full new State Pension for 2026/27 is £241.30 per week (£12,548 per year). That places it just above the Minimum single-person standard of £13,900 — but only if you have a full 35-year National Insurance record. Most retirees will have some shortfall relative to the Minimum unless they also draw on private savings.
For a single retiree targeting a Moderate lifestyle (£32,700/year), the State Pension covers roughly 38% of the target, leaving a private pension gap of around £20,150 per year. At Comfortable (£45,400/year) the gap rises to £32,850 per year.
You can check and forecast your own State Pension entitlement using our State Pension calculator, which models deferral, NI top-ups, and the impact of gaps in your record.
What a Moderate Retirement Actually Looks Like
It is worth being concrete about what each standard buys. A Moderate retirement for a single person (£32,700/year, excluding housing) is broadly described as:
- A two-week foreign holiday and a short UK break each year
- Eating out a few times a month
- Running a car
- Regular leisure activities and gym membership
- Replacing clothing and household appliances when needed
- Some financial resilience for unexpected costs
This is a reasonable, middle-ground retirement — not lavish, but comfortable enough to enjoy life with some financial breathing room. Yet only 23% of workers are currently saving enough to reach it.
What You Can Do Now
The gap between where most people are and where the Moderate or Comfortable standards sit is large, but it is not fixed. Contribution rates, investment choices, retirement age, and tax-efficient wrapper selection all have a material impact on outcomes. A few actions worth considering:
- Increase your pension contribution by 1–2% of salary — small increases compound significantly over a 20- or 30-year horizon.
- Check your State Pension NI record for gaps and consider voluntary top-ups if you have fewer than 35 qualifying years.
- Use your ISA allowance (£20,000/year) alongside your pension to build tax-free income in retirement.
- Model different scenarios using our financial planning tools — you can test what happens if you retire two years later, increase contributions, or adjust your target income.
- Get professional advice if you are within 10 years of your target retirement date. A regulated financial adviser can build a personalised decumulation strategy that makes the most of your pensions, ISAs, and State Pension entitlement.
See our subscription plans for access to the full suite of projection, tax, and estate planning tools.
Important: This article is for general educational purposes only and does not constitute financial advice. Tax rules can change and individual circumstances vary. If you need advice tailored to your situation, please consult a qualified, FCA-regulated financial adviser. You can browse advisers in our adviser directory.