What is the average UK retirement income?

How much income will you have in retirement? And how well, in real terms, will it compare to what you earn now?

When it comes to income, the key factor isn't raw numbers so much as spending power, and also what essential outgoings you may have.

By this definition, millions of Brits today will be surprised to learn how current average earnings compare to current average retirement incomes.

If you want to know if you're saving enough for retirement, the most recent UK figures should give you a good idea.

What is the average retirement income in the UK?

The UK government’s most recent data for 2024 shows the average weekly income for single pensioners to be £282. This works out at around £14,664 per year.

The average retirement income in the UK is also affected by regions.

If you live in London, you’re likely to have less than the average retirement income. But if you’re based in Scotland or the North East, you’ll likely have more to spend on average.

The gap generally comes down to a difference in living and housing costs.

In 2024, 70% of pensioners received income from a private pension. The proportion generated from private pensions has increased in recent years, but state pension benefits, occupational pension schemes and investments are also major sources of income for UK retirees.

Find out how much retirement income you might receive from your private pension and how to boost it by using our pension calculator below.

How does average retirement income compare to average earnings?

It’s interesting to see how much disposable income the average pensioner today receives in comparison to the typical worker.

According to government data from March 2025, the average UK full-time worker earns £36,972  annually. After income tax, national insurance, and 5% pension contributions (the recommended minimum), this is reduced to £28,660.

On the face of it, this is around over double the average single pensioner’s income of £14,664.

However, this does not factor in housing costs, utilities, or groceries, which have become more expensive over the last few years. 

The average UK mortgage payment is £950 a month or £11,410 per year, according to Zoopla, a 40% increase since 2021.

While the retired generation may largely own their homes outright and have no further mortgage payments, the working generation is spending a large chunk of its higher income on rent or mortgage payments.

Is the average retirement income different for couples?

Couples tend to have more retirement income than single people. As of 2024, retired couples have an average income of £595 a week, which is slightly more than twice the average income for a single person. 

Single people have lower average pension wealth due to a few factors:

• Couples share housing and have lower overheads, making it easier to build wealth than for someone living alone.

• On average, women have lower pension wealth and live slightly longer than men - many of those with lower pension wealth are single widows.

• Those who are single when retiring are likely to be divorced or separated, which may have had a significant impact on their past finances and their ability to save for retirement.

Can I live comfortably on the average retirement income?

As the comparison above shows, the average retired income may not be much different – in terms of disposable income – than that of the average wage earner.

But this doesn’t necessarily mean that such an income provides a comfortable or desired standard of living (since many wage earners still consider themselves to be struggling or ‘just getting by’).

So what makes a ‘comfortable’ retirement income?

Ultimately, it depends on how you want to spend your retirement.

Research by the Pensions and Lifetime Savings Association (PLSA) suggests a couple in the UK needs an annual combined income of £59,000 after tax to have a retirement with few or no money worries, while a single person would need £43,100.

This estimate assumes a lifestyle that includes:

• A fortnight 4-star holiday in the Med and three long weekend breaks in the UK a year.

• Around £70 a week in food, £40 a week on food out of the home, £20 a week on takeaways, and £100 a month to take others out for a meal.

• £1,500 worth of clothes and footwear per person annually

These assumptions aren’t extravagant, but they aren’t penny-pinching either.

So if you see yourself living more modestly, such as taking shorter UK-based holidays, doing cheaper food shops and buying fewer new clothes, you could get by on much less.

Research suggests an annual income of £12,800 per person is enough for a frugal retirement – but any less might mean making some big sacrifices.

To give you an idea of how much you would need to save, a £100,000 pension pot could give you an income of between £4,000 to £5,000 a year, plus a lump sum of £25,000 tax-free cash.

This doesn’t sound like much, but if you are also receiving the full new state pension, the total could be between £15,900 and £17,000 per year (plus the tax-free lump sum).

Bear in mind that the state pension age is set to rise in the future. Based on these figures, it’s good to aim for a pension pot of at least £100,000 or preferably more.

Fortunately, this is realistically achievable, as shown in our article about how much you should pay into your pension.

Are most people prepared for retirement?

The full new state pension in 2025/26 is £230.25 per week. This is significantly below the average retirement income, which means retirees are filling the gap using private (workplace or personal) pensions.

Those who do pay into private pensions should hopefully continue to meet this shortfall.

The real challenge will be faced by those who have no such pensions, mainly due to a lack of awareness – these individuals don’t know about pension schemes or why they are important.

So, they will have to cope with a major drop in disposable income when they retire unless they can put some pension savings in place in the meantime.

How can I increase my retirement income?

The bigger pension pot you can build, the better chance you have of enjoying a comfortable retirement.

It is even possible to retire as young as 55, without necessarily earning a massive salary.

Your most powerful tool for retirement saving is time.

Compound interest over many years can build small contributions into impressive sums, so the golden rule is to start saving soon: the earlier, the better.

Use our free UK compound interest calculator below to find out how your savings and investments can increase.

Learn more: what are the best savings accounts for the over 60s?

On the other hand, it’s never too late to start.

Every pension contribution you make is boosted by tax relief, so even putting money away in the final years before retirement is a lot better than doing nothing.

One of the best steps you can take to increase your retirement income is to talk to a financial adviser.

They will explain to you in simple terms what you need to do in order to achieve the income you want – and even better, they will show you how it’s possible.

Get financial advice

Based on the current data, it's clear that planning for retirement involves more than just relying on the state pension.

While average retirement incomes might seem modest compared to working wages, the costs of living can significantly alter how comfortable your retirement feels.

Building a strong private pension pot and understanding your income needs are essential steps toward a financially secure and enjoyable retirement.

Whether you're looking to live modestly or indulge in more luxurious spending, having a clear strategy and starting to save early can make a big difference.

Unbiased can quickly match you with a financial adviser for expert financial advice to help you understand how much you need to save for retirement and guide you on the best ways to grow your pension pot for a more comfortable future.