New research has shed some light on how much it costs to retire in the UK.
The findings by the Pensions and Lifetime Savings Association (PLSA) concluded that it now costs on average £43,900 per annum for one single individual to afford a comfortable retirement – a rise of £800 from 2024. For anyone retirement planning in Cheshire or elsewhere in Britain, the primary question is how much you will need in your pension pot, when also factoring in inflation and the high cost of living.
With traditional careers changing and people increasingly earning money in multiple ways, there is no typical pathway to retirement anymore. Moreover, many people might expect to live for at least three decades after retiring, which is why a pension pot of £250,000 might not be enough to last that long.
According to data analysis commissioned by MoneyWeek, this would provide a healthy 65-year-old with a yearly income of £16,258 on a typical rate of 6.5%.
This is why financial planners are now urging people to explore different ways of generating additional income. In 2025, the full state pension stands at £11,973, while many people also have other investments such as buy-to-lets. However, some experts have said that as inflation reduces the value of a £250,000 pot, people will have to save more.
With forthcoming tax changes due to be introduced in 2027, people still of working age might wish to consider options for accessing their pension fund after retiring. This might be through an annuity and may involve securing a fixed income for life, or staying invested and making regular pension drawdown withdrawals.
