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Which? Recommended Provider for SIPP 6 years running
“It's a great way to save for my future. I just wish I’d invested earlier in my life!”
A £500K pension could give you a moderate standard of living
We’ve chosen £500K as a pension goal because research shows a single person would need roughly that amount, as well as the full State Pension, to have a moderate living standard if they retired this tax year.
A moderate living standard means more financial security and flexibility. Find out what you could afford in the table below.
The Retirement Living Standards, based on independent research by Loughborough University, show how much income a single person might need for 3 retirement lifestyles – minimum, moderate and comfortable. They are examples only.
See which retirement living standard you could afford
Discover the pension pots a single person might need for 3 standards of living if they retired this tax year. The pension pots would last for about 30 years.
You can see some of the living expenses included for each lifestyle. See all living expenses
*Figures assume you own your own home with no mortgage, so you may need to add or reduce other costs depending on your situation. We have not displayed all items included in the total living expenses. See all items
**The current full State Pension is £11,970 per year.
We have converted weekly costs to monthly. See weekly costs
Our pension pot figures are based on a single person retiring in the current tax year. The pension pots would last for about 30 years. Depending on when you plan to retire, you could need to save more.
Figures assume:
- the State Pension rises by 2.5% per year
- the total living expenses increase by 2% per year to account for inflation
- average annual pension pot growth is 5% after costs
- the full State Pension is the investor’s only other source of taxable income
- the investor withdraws their 25% tax-free lump sum (capped at £268,275) gradually over time
Income from pensions is taxed at your normal rate of income tax. The figures show the amount you’d need to fund each retirement living standard after basic rate income tax of 20% has been deducted. You may need to pay more tax depending on your situation.
Source: Retirement Living Standards and Vanguard.
The Retirement Living Standards are produced by Pensions UK, which advocates for better pensions. Pensions UK and the Association of British Insurers (ABI) coordinate Pension Attention, the industry-led engagement campaign.
A 4-step plan to help you retire well
Our pension fitness plan is designed to help you plan for a strong retirement in just 4 simple steps.
It’s a clear and practical path to building a pension that supports the lifestyle you want in later life.
Delivered in partnership with Pay Your Pension Some Attention – a national campaign encouraging people to engage with their pension – it’s all about making retirement planning accessible, achievable and empowering. Learn more about Pay Your Pension Some Attention
Your couch to £500K pension plan
Know your starting position
Find out how much your pensions are worth. You can check your paper statements, online accounts or call your pension providers. If you’ve lost a pension, you can use the government’s tool to find contact details.
Set a goal and commit to it
Your pension goal should suit your situation. If saving for a pension pot of £500K does not fit your circumstances, set your goal lower or higher. If your circumstances change in the future, you can always change your goal.
Little and often wins the race
Saving a little bit more each month can really boost your pension over time. You’ll earn returns on the money you invest as well as on the returns themselves. You could also get tax relief. For every £80 you pay in, the government adds £20, increasing your contribution to £100. Set up a Direct Debit for your pension and you’ll save each month without having to think about it.
Lighten the load of your pensions
If you have a few pensions, you could bring them together into one pension. Check before you transfer a pension as you could lose out on benefits. To make things even easier, if you open a Vanguard Personal Pension, you can choose your own funds or let us pick and manage them for you.
If you’re not sure what’s right for you, speak to a financial adviser.
Why choose our Vanguard Personal Pension
Straightforward
If you’re a hands-on investor you can build your own portfolio using our individual funds.
Or if you prefer, you can let us pick and manage your investments for you.
Over 50 years of experience
We’ve been taking a stand for investors for over 50 years. Now over 50 million clients worldwide invest with us for their future.
Low cost
We keep our fees low so you keep more of your returns.
