£13,900. That is the net annual income Pensions UK says a single person now needs for a minimum standard of living, up from £13,400. State pensioners who live alone have been told by personal finance experts to expect to find the extra £500.
Pensions UK attributes the increase to what households pay for food, essential bills, transport, social activities and hobbies.
The minimum lifestyle is spare. Someone living at that level spends £55 a week on groceries and has no car. They can afford one week-long holiday in the UK each year, among other needs.
A moderate lifestyle is priced much higher. Pensions UK puts a single person’s net annual income for it at £31,700. That buys £56 a week in groceries, a small car replaced every seven years, a two-week foreign holiday at a three-star hotel and one long weekend break in the UK a year. To produce that income from an annuity, a single person with a full state pension would still need at least £335,000 in a money purchase (defined contribution) pension.
The figures for couples rose as well. A couple needs £22,500 a year net to live at the minimum level, which is 4.2 per cent above 2025’s £21,600.
Pensions UK’s research suggests the majority of the UK’s working population will not save enough even for a moderate standard of living in old age.
Claire Trott, Head of Advice at St. James’s Place, said the new numbers were expected. “The increases across the board of the UK Retirement Living Standards isn’t a surprise because of the ongoing cost of living increases,” she said.
She added that “retirement planning isn’t a ‘once and done’ thing and needs an annual review at a minimum. This helps savers check their progress and amend their plans accordingly.”
Trott also cited her firm’s 2026 Financial Health Report. Seven out of 10 people in it said that having a plan made them feel more confident about their finances.
