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Retirement Dreams vs Reality: What Does “Comfortable” Really Mean?
If you have ever caught yourself wondering, “How much do I really need to retire?” you are not alone. Almost everyone asks themselves this question at some point, and the truth is, there is no single answer. Retirement planning is highly personal and shaped by your lifestyle, your health, your family situation, and your vision for what life after work should look like.
At Glade Financial, I often speak with people who feel unsure about whether they are saving enough. Some assume their pension will cover everything, others worry they will never be able to stop working, and many simply do not know where to begin. The encouraging news is that with some clear planning, it is possible to take control and feel confident about your future.
The dream versus reality
One of the most common misconceptions is how much money you will actually need. The research (Retirement Living Standard, 2024) showed 82% of savers don’t know how much they’ll need in retirement, with only a third (33%) claiming to have carried out a “great deal” or “fair amount” of retirement planning. The research also showed that only 48% had ever reviewed whether they are putting enough money into their pension.
To achieve a comfortable retirement income of around £60,600 for a couple or £43,900 for a single person, you would need savings on top of the full State Pension of roughly £300,000-£460,000 for a couple and £540,000 – £800,000 for an individual (Retirement Living Standard, 2025).
However, one of the biggest challenges is that many people are not on track to reach these figures. In particular, women face a significant pension gap. On average, women retire with far smaller pension pots than men, often due to career breaks, part-time work, or lower lifetime earnings. According to recent studies, women’s private pensions are 48% lower than men’s by retirement age (DWP).
This gap has serious consequences. While women generally live longer than men, they often do so with less financial security. It means planning ahead and making the most of tax-efficient savings opportunities is even more important.
Of course, the word “comfortable” means different things to different people. For some, it may mean the freedom to travel abroad several times a year, enjoy fine dining, and indulge in hobbies. For others, it could mean staying close to family, helping children or grandchildren financially, or simply enjoying peace of mind knowing the bills are paid and the fridge is full.
The challenge is that retirement is not just about covering day-to-day expenses. It is about funding the life you want for two, three, or even four decades. That is why it is so important to think beyond the big number and focus on your own definition of retirement.
What income will you need?
A useful starting point is the idea that you will need at least half of your current income in retirement to maintain your lifestyle. But that is only a guideline. The reality is that your needs will depend on a variety of personal factors, such as:
- Whether you will still be paying a mortgage or rent
- How often do you plan to travel or holiday
- Whether you want to financially support children or grandchildren
- How do you intend to spend your free time
- Potential healthcare or long-term care costs
For example, the first decade of retirement is often more expensive than people realise. This is the period when many finally have the time to travel, take up hobbies, or make long-postponed purchases. Later in retirement, spending often slows, only to increase again if healthcare needs rise. Thinking about these different stages of life can help you build a clearer picture of what your income needs might look like over time.
How big should your pension pot be?
Once you have an idea of your desired retirement income, the next step is to work out how large your pension savings need to be. A widely used rule of thumb is the “safe withdrawal rate.” This suggests that you can withdraw between 3 to 4% of your pension each year for up to 30 years without running out of money.
However, there are important caveats. Life expectancy is increasing, and many people now spend longer in retirement than previous generations. If you retire in your mid-fifties, you may need your savings to last 40 years or more, which means a smaller annual withdrawal rate may be more sustainable.
Investment performance, inflation, and unexpected costs can also affect your plan. This is why a one-size-fits-all figure does not work for everyone. Personalised planning is key.
Saving for retirement
For most people, pensions remain the foundation of retirement planning. Contributions benefit from generous tax relief, making them one of the most efficient ways to grow your wealth. For example, if you are a higher-rate taxpayer, contributing £1,000 to your pension effectively costs you just £600 once tax relief is factored in.
But pensions are not your only option. Other strategies include:
- ISAs: You can save up to £20,000 each year, and all income and growth is free. This can be a flexible complement to your pension.
- Lifetime ISAs: If you are aged between 18 and 40, you can contribute up to £4,000 annually and receive a 25 per cent government bonus, making them a valuable long-term option.
- Investments: Stocks and shares, bonds, and funds can provide growth opportunities that beat inflation over time.
- Property: Downsizing later in life can release equity that boosts your retirement income.
The best approach often combines several of these, creating a balance between growth potential, tax efficiency, and accessibility.
A simple retirement checklist
If you are wondering where to start, here is a practical checklist that many of my clients find useful:
- Review your pension arrangements and contributions.
- Take advantage of ISAs for additional tax-efficient savings.
- Define your retirement lifestyle goals clearly.
- Estimate your annual spending needs.
- Translate those needs into a savings target.
- Monitor your progress and adjust as your circumstances change.
Working through these steps can help you replace vague uncertainty with clear, measurable goals.
Why advice matters
It is easy to delay retirement planning, especially when retirement feels far away. However, the earlier you start, the easier it is to build the future you want. Research shows (International Longevity Centre – UK, 2017) that individuals who received professional financial advice accumulated, on average, 17 per cent more assets over 6 years than those who did not.
Financial advice can also save you time and stress. Tax rules change, investment markets fluctuate, and family circumstances evolve. Having a clear plan and a professional to guide you through those changes means you are less likely to make costly mistakes and more likely to stay on track.
At Glade Financial, I help clients understand their pensions and investments, make smart use of tax allowances, and create tailored plans that give them confidence about their future. Retirement should be something to look forward to, not something to worry about. With the right planning, you can enjoy life after work on your own terms.
Final thoughts
Asking “How much do I really need to retire?” is an important step, but it is only the beginning. The answer depends on your dreams, your responsibilities, and your financial circumstances. By starting early, making use of the right savings vehicles, and reviewing your plan regularly, you can turn uncertainty into clarity.
Your retirement is not just about money. It is about the freedom to live the life you want after years of hard work. And with the right financial strategy in place, that freedom can become a reality.
Source:
https://www.retirementlivingstandards.org.uk/library/2025-rls-update
https://ilcuk.org.uk/new-research-finds-those-who-receive-financial-advice-are-on-average-40000-better-off-than-their-unadvised-peers/
https://www.gov.uk/government/statistics/gender-pensions-gap-in-private-pensions-2020-to-2022/gender-pensions-gap-in-private-pensions-2020-to-2022
