Most people significantly underestimate how much they need in their pension. Here’s what the average Briton actually has saved by age — and what you should be targeting.
Table of Contents
Average Pension Pot by Age
| Age Group | Average Pension Pot | Median Pension Pot | Recommended Target |
|---|---|---|---|
| 22-29 | £7,000 | £2,500 | £15,000+ |
| 30-34 | £18,000 | £9,000 | £35,000+ |
| 35-39 | £35,000 | £18,000 | £65,000+ |
| 40-44 | £55,000 | £28,000 | £105,000+ |
| 45-49 | £80,000 | £40,000 | £155,000+ |
| 50-54 | £115,000 | £55,000 | £215,000+ |
| 55-59 | £155,000 | £70,000 | £285,000+ |
| 60-64 | £180,000 | £75,000 | £370,000+ |
| 65+ | £170,000 | £65,000 | N/A |
Note: The average is heavily skewed by high earners. The median (middle value) is a better reflection of what a typical person has saved.
How Much Should You Have?
A common benchmark: aim for a pension pot of roughly 10-12× your desired retirement income by age 67 (assuming drawdown, not annuity purchase).
| Desired Annual Retirement Income | Pension Pot Needed (Drawdown) | Pension Pot Needed (Annuity) |
|---|---|---|
| £15,000 | £180,000 | £250,000 |
| £20,000 | £240,000 | £330,000 |
| £25,000 | £300,000 | £420,000 |
| £30,000 | £360,000 | £500,000 |
| £40,000 | £480,000 | £670,000 |
| £50,000 | £600,000 | £830,000 |
Remember: These figures are in addition to the State Pension (currently £11,502/year for the full new State Pension).
Pension Pot Milestones by Age
Using a salary of £35,000 and the Pensions and Lifetime Savings Association (PLSA) retirement living standards:
| Age | Minimum Standard (£14,400/yr) | Moderate Standard (£31,300/yr) | Comfortable Standard (£43,100/yr) |
|---|---|---|---|
| 25 | £6,000 | £15,000 | £22,000 |
| 30 | £18,000 | £45,000 | £65,000 |
| 35 | £35,000 | £85,000 | £120,000 |
| 40 | £55,000 | £130,000 | £185,000 |
| 45 | £80,000 | £185,000 | £260,000 |
| 50 | £115,000 | £250,000 | £350,000 |
| 55 | £155,000 | £320,000 | £450,000 |
| 60 | £200,000 | £400,000 | £560,000 |
| 67 | £55,000 | £375,000 | £600,000 |
Note: The “minimum” standard at 67 requires a smaller pot because the State Pension covers most of the income.
PLSA Retirement Living Standards (2025/26)
| Standard | Annual Income | Covers |
|---|---|---|
| Minimum | £14,400 | Basic needs, modest lifestyle, limited social |
| Moderate | £31,300 | Comfortable home, annual holiday in Europe, dining out |
| Comfortable | £43,100 | Regular holidays, new car every 5 years, financial freedom |
All figures assume a single retiree. Couples need roughly 1.5× the single amount.
Workplace Pension Contributions
Under auto-enrolment, the minimum total contribution is 8% of qualifying earnings:
| Who Pays | Minimum Contribution |
|---|---|
| Employee | 5% (including tax relief) |
| Employer | 3% |
| Total | 8% |
Is 8% Enough?
| Contribution Rate | Projected Pot at 67 (Start at 22) | Projected Pot at 67 (Start at 30) |
|---|---|---|
| 8% (minimum) | £215,000 | £165,000 |
| 12% | £325,000 | £250,000 |
| 15% | £405,000 | £310,000 |
| 20% | £540,000 | £415,000 |
Assumes £35,000 salary, 2% annual pay rises, 5% net investment growth.
The short answer: 8% is likely not enough for a comfortable retirement. Most financial advisers recommend 12-15% of salary.
Gender Pension Gap
| Metric | Men | Women | Gap |
|---|---|---|---|
| Average pension pot (55-64) | £205,000 | £105,000 | 49% less |
| Average workplace contribution | 6.2% | 5.5% | — |
| Years in workforce | 42 | 34 | 8 fewer |
| Impacted by career breaks | 12% | 43% | — |
The gender pension gap is even larger than the pay gap, driven by career breaks, part-time work, and lower average earnings over a lifetime.
How to Catch Up
By Age Group
| Your Age | Years to 67 | Strategy |
|---|---|---|
| 30s | 30+ years | Increase contributions to 12-15%, maximise employer match |
| 40s | 20+ years | Push to 15-20%, consolidate old pensions, consider salary sacrifice |
| 50s | 10-15 years | Maximise contributions, use carry forward, review risk allocation |
| 60s | Under 10 | Assess drawdown vs. annuity, consider delaying State Pension |
Catch-Up Contribution Amount Needed
To reach a £375,000 pot by age 67 (moderate standard):
| Current Age | Current Pot | Monthly Savings Needed (after tax relief) |
|---|---|---|
| 30 | £10,000 | £350 |
| 35 | £25,000 | £425 |
| 40 | £50,000 | £500 |
| 45 | £80,000 | £600 |
| 50 | £100,000 | £850 |
| 55 | £150,000 | £1,200 |
Assumes 5% net growth after fees.
Annual Allowance and Tax Relief
| Rule | 2025/26 Amount |
|---|---|
| Annual allowance | £60,000 |
| Money purchase annual allowance | £10,000 |
| Carry forward | Up to 3 previous years’ unused allowance |
| Lifetime allowance | Abolished (April 2024) |
| Tax relief at basic rate | 20% (automatic) |
| Tax relief at higher rate | 40% (claim via self-assessment) |
| Tax relief at additional rate | 45% (claim via self-assessment) |
Tax Relief Example (Higher-Rate Taxpayer)
| Amount | Value |
|---|---|
| Net contribution (from salary) | £800 |
| Basic-rate tax relief (automatic) | £200 |
| Gross pension contribution | £1,000 |
| Additional higher-rate relief (claimed) | £200 |
| Actual cost to you | £600 |
For every £600 you give up, £1,000 goes into your pension. That’s a 67% boost.
How Your Pension Pot Compares
| Percentile | Pension Pot (Age 55-64) |
|---|---|
| 10th | £5,000 |
| 25th | £25,000 |
| 50th (Median) | £70,000 |
| 75th | £185,000 |
| 90th | £450,000 |
| 95th | £750,000 |
Key Takeaways
- The median pension pot at 55-64 is just £70,000 — far below what most people need for a comfortable retirement
- Aim for a pot of £375,000-£600,000 for a moderate to comfortable retirement at 67 (plus State Pension)
- 8% auto-enrolment contributions likely aren’t enough — target 12-15% if possible
- Women face a 49% pension gap due to career breaks and lower lifetime earnings
- Tax relief makes pension saving incredibly efficient — higher-rate taxpayers effectively get a 67% boost
- Start early and increase gradually — even 1% more per year compounds dramatically over decades
- Check our pension guide for a full breakdown of State Pension, workplace pensions, and SIPPs
