Among people in Great Britain with some private pension wealth, the median at ages 55 to 64 was about £133,800 in ONS data covering April 2018 to March 2020. The mean (£224,900) is higher because a small number of very large pensions pull it up. These figures include defined benefit pensions (such as final salary and public sector schemes), so they are not the same as the size of a defined contribution pot. The full new State Pension (£241.30 a week, about £12,548 a year) provides a baseline; private pension savings are what add to it.
Average Pension Pot by Age
The figures below are from the ONS Wealth and Assets Survey for Great Britain (April 2018 to March 2020), restated by ONS with its updated method for valuing defined benefit pensions. They cover people with some private pension wealth, so people with no pension are not in the averages. This is the latest age breakdown we could verify, and it is several years old.
| Age Group | Mean Private Pension Wealth | Median Private Pension Wealth |
|---|---|---|
| 16–24 | £12,200 | £3,000 |
| 25–34 | £28,200 | £10,500 |
| 35–44 | £69,900 | £31,400 |
| 45–54 | £141,100 | £72,900 |
| 55–64 | £224,900 | £133,800 |
| 65–74 | £213,700 | £120,800 |
| 75–84 | £110,500 | £62,700 |
| 85+ | £53,900 | £31,900 |
The median is the better benchmark, because a small number of very large pensions pull the mean up. Median private pension wealth is under £35,000 up to age 44 and peaks at ages 55 to 64. If you want to compare your overall wealth position, not just pension savings, see average net worth by age in the UK and average savings by age.
How Much Should You Have at Retirement?
There is no single official pot size to aim for. What you need depends on the lifestyle you want, your State Pension and how you plan to draw your pension. Use the UK pension calculator to model your own situation.
Drawdown keeps your pot invested and you take money out gradually. It carries investment risk — your pot can fall as well as grow.
Annuity is a product you buy that gives you a guaranteed income for life; the amount depends on how long the insurer expects you to live.
The full new State Pension is £241.30 a week (about £12,548 a year), so your private pension only needs to bridge the gap between that and your desired income. Use the State Pension calculator to check your personal State Pension forecast.
Retirement Living Standards
The Retirement Living Standards describe three lifestyles and estimate the yearly cost of each. They are estimated costs, not income, so tax may mean you need more.
| Standard | Yearly Cost (One Person) | Yearly Cost (Two People) | What It Covers |
|---|---|---|---|
| Minimum | £13,900 | £22,500 | Covers the cost of all your basic needs, with some left over for fun |
| Moderate | £32,700 | £45,400 | More financial security and flexibility: an annual overseas holiday, a UK long weekend break, a takeaway a week, eating out a couple of times a month |
| Comfortable | £45,400 | £62,700 | The Moderate lifestyle plus extra-long weekends away in the UK, some day trips and more to spend on eating out and social activities |
For the minimum standard (£13,900 a year for one person), the full new State Pension (about £12,548 a year) covers most of the cost — only a small private income is needed to bridge the gap. For the moderate and comfortable standards, the gap above the full State Pension is roughly £20,150 and £32,850 a year for one person (£32,700 and £45,400 less about £12,548), before allowing for tax. These standards are updated annually, and the figures above are the latest on the Retirement Living Standards site at the time of writing.
Workplace Pension Contributions and Auto-Enrolment
Auto-enrolment, introduced in 2012, has helped narrow gaps in workplace pension participation — but the 8% total minimum is a legal floor, not a retirement target.
| Who Pays | Minimum Contribution |
|---|---|
| Employee | 5% (including tax relief) |
| Employer | 3% |
| Total | 8% |
In most automatic enrolment schemes, contributions are based on your total earnings between £6,240 and £50,270 a year before tax, so pay below £6,240 is not counted. Some schemes let your employer pay in more than the 3% legal minimum — check your scheme’s rules to see what yours contributes. Increasing your own rate is possible through salary sacrifice (which can reduce National Insurance contributions) and gradual annual increases. See the UK pensions guide for a full breakdown of workplace pensions, SIPPs and contribution strategies.
The Gender Pension Gap
DWP figures put the gender gap in private pension wealth at 48% for people aged 55–59 in 2020 to 2022, among people with some private pension wealth. That is a gap in median pension wealth, including defined benefit pensions.
| Metric (55–59, 2020 to 2022) | Men | Women | Gap |
|---|---|---|---|
| Median uncrystallised private pension wealth | £156,000 | £81,000 | 48% less |
Making contributions during career breaks helps: a non-earner’s pension can receive up to £2,880 a year of contributions, including from a partner, with basic-rate tax relief added on top. See average salary in the UK for context on earnings.
Catching Up
There is no official pot target by age, so the practical levers are the ones the rules give you:
- Contribute more through your workplace scheme, including via salary sacrifice where your employer offers it.
- Use carry forward if you have already used your annual allowance this year: you might be able to carry over unused allowance from the previous 3 tax years.
- Pay in for a non-earner such as a partner: up to £2,880 a year, with basic-rate relief added on top.
- Check your State Pension forecast with the State Pension calculator, because it is the baseline your private pension adds to.
For a SIPP (Self-Invested Personal Pension) as an alternative to a workplace scheme, see the SIPP guide. For pot-specific income projections, see £100,000 pension pot, £250,000 pension pot and £500,000 pension pot.
Pension Annual Allowance and Tax Relief (2026/27)
| Rule | 2026/27 Amount |
|---|---|
| Annual allowance | £60,000 |
| Money purchase annual allowance (MPAA) | £10,000 |
| Carry forward | Unused allowance from the previous 3 tax years, once this year’s is used up |
| Lump sum allowance (tax-free cash cap) | £268,275 |
| Lifetime allowance | Abolished (6 April 2024) |
| Tax relief — basic rate | 20% (added by your pension provider) |
| Tax relief — higher rate | 40% (the extra 20% is usually claimed via Self Assessment) |
| Tax relief — additional rate | 45% (the extra 25% is usually claimed via Self Assessment) |
Worked example — higher-rate taxpayer:
| Amount | |
|---|---|
| Net contribution (from your pay) | £800 |
| Basic-rate tax relief added by the provider | £200 |
| Gross pension contribution | £1,000 |
| Additional higher-rate relief claimed via Self Assessment | £200 |
| Total effective cost to you | £600 |
A higher-rate taxpayer who claims the extra 20% pays £600 for each £1,000 in the pension, about a 67% boost.
The lifetime allowance was abolished on 6 April 2024, so there is no longer a lifetime cap on the total value of your pension savings — a significant change for high earners. The annual allowance and the cap on tax-free cash still apply. The inheritance tax guide covers how pensions interact with your estate: unused pension funds are generally outside your estate for deaths before 6 April 2027, and from that date most unused pension funds and death benefits count towards the estate.
Key Takeaways
- Median private pension wealth peaks at £133,800 at ages 55 to 64 in the latest ONS age breakdown (Great Britain, April 2018 to March 2020), and includes defined benefit pensions
- The Retirement Living Standards cost £13,900, £32,700 and £45,400 a year for one person (minimum, moderate, comfortable), against a full new State Pension of about £12,548
- The 8% auto-enrolment total is a legal minimum, not a target for any lifestyle
- Women aged 55–59 had a median private pension pot 48% lower than men’s in 2020 to 2022
- Tax relief makes pension saving efficient — a higher-rate taxpayer who claims the extra 20% pays £600 for each £1,000 in the pension
- The lifetime allowance was abolished on 6 April 2024, but the annual allowance and lump sum allowance still apply
For more on UK pension planning, see the UK pension guide, SIPP guide, pension calculator, State Pension calculator, ISA guide, average savings by age, and average net worth by age.
Compare Retirement Savings Globally
See how UK pension savings compare to equivalent retirement savings schemes around the world:
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