Retirement Living Standards updated for 2026

03 June 2026

Written by Retirement Line

The latest Retirement Living Standards have been published, showing a 3-4% increase in the income needed to enjoy lifestyles across three levels, from Minimum to Comfortable.

What are the Retirement Living Standards?

The Retirement Living Standards (RLS) were launched in 2019. It’s a joint initiative between Pensions UK and the Centre for Research in Social Policy at Loughborough University.

The standards aim to give consumers a picture of how much income they might need in retirement, broken down into three lifestyle tiers:

• Minimum – covering basic needs, with some social and leisure activities.

• Moderate – more financial security and flexibility, including holidays and home maintenance.

• Comfortable – a more luxurious lifestyle with frequent holidays, dining out and generous gift-giving.

These standards are based on detailed discussions with people from all walks of life across the UK. Annual reviews ensure they reflect real changes in prices and expectations.

2026 sees an increase in the money needed by retirees

Last year saw a reduction in the Minimum standard compared to 2024, driven largely by falls in domestic energy bills. There were year-on-year increases in the Moderate and Comfortable standards. 

For 2026, there are increases across all three standards. These reflect rising costs across everyday spending categories such as food, essential household bills and transport, as well as social activities and hobbies.

It’s important to note that these standards don’t take account of housing costs in retirement. In effect, they assume that retired people will own their own home and be mortgage-free. Those renting or still clearing a mortgage in retirement would likely need income well above the RLS Minimum, and possibly above the Moderate level.

With the State Pension currently at £12,547 per year, there is a £1,353 shortfall to meet the Minimum RLS income level for a one-person household. However, a two-person household where both people receive the State Pension will be over £2,500 above the Minimum standard.

Also, remember that the Minimum/Moderate/Comfortable labels are subjective. For example, some people may feel ‘comfortable’ on an income well below the RLS level. Also, many people are managing on an income below the Minimum standard. 

But notwithstanding that, the RLS figures do provide a useful view of the type of lifestyle they might expect, based on the projected retirement income. 

Action is needed to address retirement income shortfalls 

Pension UK say that they expect around 82% of the working population to reach the Minimum standard of living in retirement. This falls to just 23% reaching a Moderate standard and 9% reaching Comfortable.

The Pensions Commission is looking at whether the minimum rates of saving within automatic enrolment pension schemes need to rise in the future. Although many employers contribute above the legal minimum, Pensions UK want to see more action by employers to help fix the retirement savings gap.

They are also encouraging people to speak to their employer and see whether the organisation is prepared to support them to save above the minimum, such as higher rates of matching pension contributions.

Retirement Line’s Chief Compliance Officer Mark Ormston says:

“Savers continue to be dependent on building private pension pots in order to reach the Moderate and Comfortable RLSs. Crucially, because these standards measure baseline expenditure and exclude housing costs, millions of future retirees face a risk of falling short of a lifestyle that delivers security, social participation and most importantly, expectations.

“The fantastic work by the Pensions UK RLS team brings into sharp focus that resolving the retirement adequacy dilemma can no longer be viewed simply as a challenge of individual financial behaviour. It’s a systemic issue that demands decisive structural and policy reform, a shift in focus that is already gaining traction through the work of the Pensions Commission.”

How much income will your pension savings bring you?

If you are enrolled in a pension scheme, your scheme should be able to provide projections of the level of income you might expect from your chosen retirement date.

You can also use our free annuity calculator to get an estimate of how much guaranteed income for life you could expect from an annuity. This is based on current annuity rates, the age you wish to retire and the expected value of your pension savings.

Retirement Line is one of the Friends of the Retirement Living Standards who support ongoing research to ensure the standards remain up to date and relevant.