How Much Do I Need to Retire? A Simple Guide for Modern Families
Retirement used to be about winding down — but for today’s families, it’s more about freedom, flexibility, and choice. Whether you want to stop working entirely, reduce your hours, or pivot to something more meaningful, one big question often comes up:
“How much do I actually need to retire comfortably?”
At Ella Rose Financial, we work with families and business owners across the UK who want a plan that reflects their life — not a one-size-fits-all figure. Here’s a simple guide to help you start thinking about what retirement could look like for you.
What Does “Comfortable” Mean to You?
The first step is getting clear on what your version of retirement looks like.
Ask yourself:
Will you stay in your current home, downsize, or move abroad?
Do you want to travel, support adult children, or start a new venture?
Will your mortgage be paid off? Will you still have dependents?
Retirement isn’t just about stopping work — it’s about funding the lifestyle you want, at a time that feels right.
So, How Much Will You Need?
A good starting point is to think in terms of annual income.
Many families aim for around 60%–80% of their pre-retirement income, but this can hugely vary based on your lifestyle, health, and goals.
According to research from the Pensions & Lifetime Savings Association (PLSA) ¹:
A basic retirement (covering essentials with a few extras) costs around £14,400 a year for a single person, or £22,400 for a couple.
A comfortable retirement (including holidays, hobbies, and some dining out) requires about £31,300 a year for a single person, or £43,100 for a couple.
A luxury retirement (with long-haul travel and more frequent indulgences) can rise to £43,100 a year for a single person, or £59,000 for a couple.
It’s worth noting: these figures assume you are mortgage-free and don’t pay rent — something we’ll factor in as part of your plan.
But the key isn’t just the amount — it’s where it comes from.
Planning your retirement income is about more than hitting a target — it’s about structuring that income tax-efficiently and sustainably.
¹ Source: Pensions & Lifetime Savings Association – Picture Your Future: Retirement Savings Standards ; tax year 2024/2025.
https://www.retirementlivingstandards.org.uk
What Will Your Income Be Based On?
For most families, retirement income is made up of a combination of:
State pension (currently around £11,900 a year if you qualify in full)
Workplace pensions, personal pensions or SIPPs
Savings and investments
Rental income or business assets
Part-time work or consultancy (for semi-retirement lifestyles)
We help clients model how long their money might last — and how much they can safely draw without risking running out too soon.
What About Tax and Inflation?
Two things people often underestimate:
Tax: Not all retirement income is tax-free. We help structure withdrawals tax-efficiently to maximise what you receive.
Inflation: £40,000 today won’t go as far in 20 years’ time. Your plan needs to account for rising living costs, especially if you retire early.
Planning as a Family
Many clients we work with aren’t just planning for themselves — they’re thinking about:
Supporting adult children through university or getting on the property ladder
Helping ageing parents
Leaving a legacy or gifting during their lifetime
We help you balance those family goals with your own financial wellbeing, so you're not left stretched later on.
Why a Retirement Number Isn’t Enough
A big retirement fund might sound reassuring — but without a plan, it’s hard to know:
How long it will last
What you can safely spend
How to protect it from tax or market volatility
That’s where we come in.
We build personal, practical retirement plans that map out your income year-by-year — giving you clarity and confidence at every stage.
Let’s Talk About Your Retirement
You don’t need to have all the answers — just a sense of what’s important to you.
At Ella Rose Financial, we help modern families make smart, proactive decisions about their future. Whether you’re 10 years away from retirement or ready to make the leap, we’re here to support you with a plan that’s tailored for today — and empowered for tomorrow.
Ready to get started? Book a no-obligation conversation via our contact form today.
Disclaimer
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected the interest rates at the time you take your benefits.
The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change in the future.