£450K pension pot needed to retire well

Category: All&Pensions
Recent research1 has shown that savers on an average salary need a pension pot of £447,000 to retire comfortably at the age of 65. This sum would fund their retirement until they were 100 years old, the research suggests.


The research also suggests that it will be easier to accumulate a pension pot of this size if you start saving as early as possible. While projections indicate that a 25-year-old would only need to put aside £235 per month to save this amount, a delay of ten years in starting would see this monthly contribution leap to £428. If a person were to only start saving at 45, they’d have to put away £859 monthly.

The differences between these figures really drive home the importance of starting to save for retirement as soon as is practicable – preferably when you first start work. Although it may sometimes be financially challenging to make regular contributions to your pension throughout your working life, doing so will offer you the best chance of living a retirement free of money worries.


While starting early is the ideal scenario, don’t be disheartened if you’ve only managed to start saving later in life. Participating in auto-enrolment schemes, in which your employer contribution as well as taking advantage of pension tax reliefs, could both significantly boost your savings and make a real difference to you in retirement. Combined with the potential for investment growth, contributions made now could still see you enjoying better living standards in retirement.


When you first start work, retirement seems (quite literally) a lifetime away, but it comes around before you know it. So, getting to grips with your pension now will give you the best chance of a happy, prosperous retirement.

1AJ Bell, June 2019

A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

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