Retirement Savings Gap Calculator 2026/27
Most people have a gap between what their pension is on track to deliver and the income they actually want in retirement. This calculator takes your current pot, your monthly contributions, years to retirement, and target income to show whether you are on track -- and if not, exactly how much more you need to save each month to close the gap. The state pension is factored in as a guaranteed income floor, reducing the private savings target.
UK retirement income benchmarks
The Pensions and Lifetime Savings Association (PLSA) publishes Retirement Living Standards that give UK-specific benchmarks for how much income different lifestyles require.
| Standard | Single person | Couple |
|---|---|---|
| Minimum | £14,400/year | £22,400/year |
| Moderate | £31,300/year | £43,100/year |
| Comfortable | £43,100/year | £59,000/year |
The full new state pension provides £12,548 in 2026/27, covering a significant portion of the minimum standard. At the moderate standard, a single person needs their private savings to deliver approximately £18,752 per year on top of the full state pension.
Frequently asked questions
The PLSA Retirement Living Standards suggest a single person needs approximately £14,400 per year for a minimum lifestyle, £31,300 for a moderate lifestyle, and £43,100 for a comfortable lifestyle. For couples the figures are approximately £22,400, £43,100, and £59,000 per year respectively.
A common rule of thumb is to have roughly 10 times your annual salary saved by retirement. Working backwards, by age 50 you might aim for around 5 to 6 times your salary. For example, if you earn £40,000, a target of £200,000 to £240,000 by age 50 is a commonly cited benchmark. This is a rough guide -- your actual target depends on your desired lifestyle and when you plan to retire.
The 4% rule suggests you can withdraw 4% of your pension pot in year one and adjust for inflation each year, with a low probability of running out over a 30-year retirement. To generate £20,000 per year you would need a pot of £500,000. This should be used as a rough guide only, as individual circumstances, UK tax rules, and the state pension all affect the calculation.
Yes. The state pension is a guaranteed income that reduces the pot size you need from private savings. In 2026/27 the full new state pension is £12,548 per year. If your target is £25,000 and you receive the full state pension, you only need private savings to provide £12,452 per year.
The main options are to increase monthly contributions, work for longer, reduce your target income, or a combination. Increasing contributions has the most powerful effect over long horizons due to compound growth. Even an extra £100 per month over 20 years can add tens of thousands to your final pot. Salary sacrifice can also increase contributions while saving National Insurance for both you and your employer.
Disclaimer: This calculator provides estimates for guidance purposes only. Projections assume constant growth which will not reflect real market conditions. It does not constitute financial advice. Always consult a regulated financial adviser for personal retirement planning.