Cost of minimum retirement lifestyle has fallen amid lower energy prices

05 Jun 2025

The minimum amount someone needs in retirement has fallen, amid lower energy prices and people's changing expectations, according to a report from the Pensions and Lifetime Savings Association (PLSA).

This year, the cost of a minimum retirement living standard for a one-person household has decreased by £1,000 per year to £13,400, says the PLSA. For a two-person household, it is £21,600, down from £22,400 a year previously.

For a moderate lifestyle, a single person would need £31,700, up by £400 from £31,300 previously, while two people would need £43,900, up by £800 from £43,100 previously. For a comfortable retirement, a single person would need £43,900, up by £800 from £43,100 previously, and a two-person household would need £60,600 – a £1,600 annual increase from £59,000.

Zoe Alexander, Director of Policy and Advocacy at the PLSA, said: 'Everyone's situation is different, and contributions should be manageable. But if your circumstances improve, even small increases can make a big difference to your future.

'This year's findings show that costs can go down as well as up. But planning matters more than ever. Whether you're on your own or sharing your future with someone else, these standards are here to help savers picture and plan their retirement – with real figures, real choices and real flexibility.'