A single pensioner in the UK now needs £13,900 a year, net, to reach a minimum standard of living. A year ago the figure was £13,400. Personal finance experts are calling the £500 difference a warning for people who live alone on a state pension.
Pensions UK, which sets out the retirement living standards, ties the rise to higher household costs. It lists food, essential bills, transport, social activities and hobbies.
What minimum means
The minimum is a tight budget. It assumes £55 a week on groceries, no car, and one week-long holiday in the UK each year, among other needs. For families with a parent or grandparent living alone, that is a useful yardstick for how little room there is.
Couples fare no better. A couple would need a net annual income of £22,500 to live at the minimum level, up 4.2 per cent from £21,600 in 2025.
The moderate tier
A step up is what Pensions UK calls a moderate lifestyle. It means £56 a week on groceries, a small car replaced every seven years, a two-week foreign holiday in a three-star hotel, and one long weekend break in the UK a year.
A single person with a full state pension would still need at least £335,000 in a money purchase pension, also known as defined contribution, to reach a net annual income of £31,700 from an annuity. Pensions UK’s research suggests most of the UK’s working population will fall short of the savings needed even for this level.
An annual check
Claire Trott, Head of Advice at St. James’s Place, said the rises were no surprise. “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 said they are a reminder that “retirement planning isn’t a ‘once and done’ thing and needs an annual review at a minimum.” That lets savers check their progress and change plans as needed.
A financial plan helps, she added. Seven out of 10 people in St. James’s Place’s 2026 Financial Health Report said having one made them feel more confident about their finances.
Sources
- State pensioners living alone warned they need to find extra £500
- State pensioners living on their own sent £500 warning
