Author:
Jordan Gillies
Head of Business Development,
Saltus Asset Management Team
Reviewed by: Megan Jenkins, Chartered Financial Planner, Saltus Asset Management Team
The Pensions and Lifetime Savings Association (PLSA) recently updated its Retirement Living Standards, raising the benchmark for what it calls a “comfortable” lifestyle in retirement. For couples, the recommended annual income has increased from £59,000 in 2024 to £60,600 in 2025. For individuals, the figure has nudged up from £43,100 to £43,900.[1]
At first glance, these shifts may seem minor. But they reflect a deeper reality: the cost of maintaining a fulfilling and secure lifestyle in retirement continues to rise.
What are the Retirement Living Standards?
The Retirement Living Standards (RLS), set by the PLSA, outline the annual income needed for three levels of retirement: minimum, moderate, and comfortable. They’re based on research and in-depth discussions with members from the public across the UK, who described what retirement looks like at each level.
The goal is to give people a clear, relatable picture of what different retirement lifestyles cost, helping them plan more effectively for the future.
What does a “comfortable” retirement really mean?
According to the PLSA, a “comfortable” retirement doesn’t necessarily mean lavish spending. It means financial freedom and lifestyle flexibility. The PLSA regularly updates its definitions to reflect changing living standards, inflation, and consumer expectations. Under the current PLSA’s definition, a comfortable retirement enables[1]:
- Two weeks’ holiday in Europe each year, plus UK weekend breaks
- Regular dining out and cultural activities
- Running a car with few limitations
- A generous budget for clothing, tech, and leisure
Why the update matters
The RLS act as a national benchmark, offering a snapshot of how inflation, longevity, and changing lifestyles are shaping the future of retirement. While, as our Wealth Index data shows, these figures may appear modest to many, they serve as a useful reference point for assessing long term financial security.[2] The Saltus Wealth Index, based on biannual surveys of over 2,000 people with £250k+ in investable assets, measures the confidence and priorities of the UK’s high-net-worth population.
Planning your retirement
Retirement planning is often less about reaching a specific financial target and more about supporting a lifestyle that feels meaningful. That might mean more travel, more time with family, or simply more freedom in your day-to-day choices.
Maintaining your lifestyle in retirement means more than just reaching a savings goal. It’s about keeping the choices, routines, and comforts that matter to you. It requires a strategy that accounts for volatility, inflation, interest rate shifts, market cycles, and tax efficiency.[3] Just as importantly, it should be flexible enough to respond to major life events and changing circumstances, so your retirement plan remains aligned with your goals over time.
Reviewing your retirement plan
The PLSA’s update is a valuable prompt, but it’s not the final word. For many, the key question is shifting from “Do I have enough?” to “Does my plan support the life I want to live?”
With rising costs and longer life spans, even if you have a well-established financial plan you will benefit from revisiting it regularly. Portfolio diversification, tax wrappers, drawdown strategies, and liquidity planning all play an important role in sustaining a lifestyle that extends beyond simple comfort. A financial adviser can help you understand how these might affect your options.
Tools and guidance to stay on track
The Saltus pension calculator can be a useful starting point in assessing whether your current plans align with your future aspirations. The next step? Working with a financial adviser to build a detailed cash flow plan and retirement strategy that’s resilient and personalised.
Key considerations for reviewing your retirement plans
This PLSA revision serves as a timely nudge to:
- Reassess spending and longevity assumptions
- Adjust withdrawal strategies as needed
- Diversify beyond traditional asset classes
- Revisit intergenerational and philanthropic goals
Final thoughts
The revised standards offer a timely reminder to pause and reflect on your retirement plans. If you’re unsure whether your goals are on track, or if you’re questioning your approach, it might be worth speaking with a financial adviser.
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All authors have considerable industry expertise and specific knowledge on any given topic. All pieces are reviewed by an additional qualified financial specialist to ensure objectivity and accuracy to the best of our ability. All reviewer’s qualifications are from leading industry bodies. Where possible we use primary sources to support our work. These can include white papers, government sources and data, original reports and interviews or articles from other industry experts. We also reference research from other reputable financial planning and investment management firms where appropriate.