Young workers need £131 per month for comfortable retirement - Which?

'Easily achievable'

clock • 2 min read

Savers aged 20 need to put away £131 every month into a defined contribution (DC) pension to achieve a £26,000 annual income in retirement, research from Which? has said.

The figure rises to £198 for 30-year-olds, £338 for 40-year-olds, and £633 for 50-year-olds, and assumes 20% tax relief, 3% investment growth, and a state pension top-up. Saving this amount would help a retirement fund total about £370,000 after tax that could then be used to buy an index-linked joint life annuity. The research suggested a £18,000 annual income in retirement would cover household essentials, while a £26,000 income would allow spending on short-haul holidays and some leisure activities. The calculations are based on a survey of 1,590 retired couples' spending habits...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Why pension transfers remain stuck in the slow lane

Why pension transfers remain stuck in the slow lane

'Some providers complete transfers in as little as five days on average, others take up to 90'

Lisa Picardo
clock 08 June 2026 • 5 min read
Nearly half of pension transfer scam alerts for unknown reasons

Nearly half of pension transfer scam alerts for unknown reasons

Some 35% of flagged cases related to ‘overseas investments’

Sophia Panayi
clock 08 June 2026 • 2 min read
Andrew Tully: A long-term policy framework can fix the UK's retirement undersaving problem

Andrew Tully: A long-term policy framework can fix the UK's retirement undersaving problem

'Important moment for long-term retirement policy in the UK'

Andrew Tully
clock 08 June 2026 • 5 min read