How much do I need in my pension so that I can retire?

I am often asked 'How much do I need in my pension so that I can retire?"

Some have approached me after reading an article in the Sunday newspapers, or because they have found something on the internet on this subject, these can often suggest you need a scarily large pot of money which can seem unachievable or over whelming.

The way I respond to this is to centre on the person concerned- their wants and needs and not use an arbitrary number.  Also, I have found that by carefully considering all the past and current pension benefits, the picture can look brighter than at first glance.

For me, the place to start is to imagine your life without work, what will you need each month? This in itself can be difficult to fathom, so imagine for a moment, it was tomorrow!

To begin, what are your monthly bills, food shopping, costs for running your car -  all the non-negotiables, or your "bread and butter"!

Then, think about your current lifestyle, the things you want to do – your hobbies, seeing friends, club/gym memberships, weekends away and your annual holidays. My clients have in the past termed this as 'the jam on the bread"!

This can vary massively from household to household. Some, for instance, may have mortgage commitments that extend beyond their desired retirement age, others may need to care for dependents, some want the quiet life - you get the point, it’s a highly individual thing!

Now you have a figure, it's time to unearth all of the past pension savings for a thorough and detailed run through and often these include Defined Benefit pensions that have been revalued over the years (another blog to come on this!) as well as current pensions and your future State Pension. Tax and inflation in the future can be bewildering, so speaking to someone who has the tools to factor that in can mean that pretty soon you will get to the bottom of things.

I have dealt with many who have been pleasantly surprised that retirement is in reach - I have also had to give an opinion to a few that "no, it's not quite in reach, yet!” They are however, much clearer on what they have to do to get there!

Where to start.....

• Keep a track of your old pensions, think back over your working life and when you were a member of a pension scheme, gather up old statements, anything that can give clues to where up to date information can be gathered.

• Do you make pension contributions? If you are employed, grab your payslip and this will show you both your contributions and your employers.

• Reach out for the help you need in understanding what this will mean for you!!

Approver Quilter Financial Services Ltd 28/10/2025.