What retirement can look like in real life
Most of us aren’t totally sure how much we’ll spend next week, let alone in 20 or 30 years’ time. So it’s little surprise that planning for retirement can feel vague, overwhelming and easy to put off. If that’s how it feels to you, you’re not doing it wrong; that uncertainty is totally normal.
That’s also why the Retirement Living Standards exist. Created by the Pensions and Lifetime Savings Association (PLSA), they set out three example lifestyles in retirement – labelled as ‘minimum’, ‘moderate’ and ‘comfortable’ – and the typical yearly income linked to each one. This can help you picture what different lifestyles in retirement might look like, and roughly what they could cost. They’re built using research about real households and everyday routines – from food and transport, to holidays and hobbies.
Below, we’ve brought each level to life with a fictional case study. None of these is better than the other, they just reflect different ways retirement can look.
If these examples get you thinking about your own retirement, Monzo makes it easy to track down lost pensions, and combine them in one pot that you can keep track of.
Before we get into it, a reminder that we can’t give you tax or financial advice – you’ll need to speak to a professional adviser for that.
How much do I need to retire?
What a minimum retirement lifestyle looks like
Pat, 74, lives on about £14,400 a year
Pat lives in a one-bed flat in Kent with her Yorkshire Terrier, Minnie. She retired at 66 and most of her income comes from the State Pension, topped up with a small workplace pension from her years working in retail.
Pat keeps a close eye on her money. She sets weekly budgets for food and essentials, shops with a list, and cooks nearly all of her meals at home. Eating out is rare, but she enjoys a regular cup of tea at a local cafe with her friends, which she makes space in her budget for.
Holidays are low-cost and familiar, usually a long weekend in the UK, staying in the same guesthouse she knows well. Pat doesn’t have a car, but her bus pass helps her get around and stay connected with friends and family.
Pat doesn’t have much flexibility for unexpected costs, so planning ahead matters. What she values most is covering the basics, staying independent, and knowing where she stands financially.
What a moderate retirement lifestyle looks like
Juan, 69, lives on about £31,300 a year
Juan’s a retired IT technician who lives in a mortgage-free semi in Shropshire. He receives the State Pension alongside income from a private pension he built up over his career.
Juan’s day-to-day spending feels easy to manage. He eats out once or twice a month at the local pub and can say yes to last-minute plans with friends without giving it much thought. He runs a car, which he tries to replace every six or seven years – always planning ahead so he has enough budgeted.
Juan takes one holiday abroad each year, along with the occasional short break in the UK.
Day to day, money doesn’t weigh on Juan’s mind, but bigger decisions do need more thought – things like helping out his adult children, or fitting in an extra holiday in the same year. He knows he has to strike a balance between enjoying retirement and staying organised.
What a comfortable retirement lifestyle looks like
Rhia, 72, lives on about £43,100 a year
Rhia lives in a detached home on the outskirts of Manchester. She receives the State Pension alongside income from a long-standing workplace pension.
Rhia enjoys a lot of freedom in retirement. She travels abroad three times a year, mixing longer trips with shorter European city breaks. At home, she regularly goes to dance classes, concerts and restaurants.
She runs a car and will often treat herself to a taxi home after an evening out. When her boiler needed replacing a couple of years ago, Rhia was able to get it sorted without needing to cut back elsewhere or rethink her plans.
Rhia likes being able to help her family – she contributed towards her grandchildren’s driving lessons, and helped one of them with money for university accommodation. Her retirement feels busy, full and shaped by choice.
How to start planning for your retirement today
No one knows exactly what their retirement will look like, and that’s okay. The Retirement Living Standards aren’t about certainty or getting things right. They’re there to make the future feel a bit less abstract, and to help turn a big, distant idea into something easier to imagine.
And remember, what feels ‘moderate’ to one person might feel ‘comfortable’ to someone else, depending on how they live, where they live, and what matters to them. And over time, you might move between these levels as prices change, the cost of living shifts, or life takes a different turn.
Wherever you’re starting from, it’s never too late to begin contributing to a pension. Saving a little is always better than saving nothing. Small steps still count, and future you will notice them.
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