Minimum, moderate or comfortable? - Latest insight on achieving the Retirement Living Standards

The RLS help people understand how much income they may need in retirement and what standard of living that income could provide. They are grouped into Minimum, Moderate and Comfortable standards, using a "basket of goods" approach that reflects typical retirement spending patterns.

For those planning their retirement, the latest standards for a one-person household are:

• For a Minimum standard of living, you'll need £13,900 per year.
• For a Moderate standard, which offers greater financial security and flexibility, you'll need £32,700 per year.
• For a Comfortable standard, which allows for more financial freedom and discretionary spending, you'll need £45,400 per year.

Assessing your chances of meeting RLS

We've incorporated the latest RLS figures, current market conditions and the 2026/27 State Pension into our latest analysis. Using our Guided Outcomes™ modelling, we assess the likelihood of meeting the RLS across different combinations of salary and contribution rates, using a red/amber/green colour scale to show the chances of success.

Our findings show that members who contribute consistently throughout their working lives generally have a strong chance of meeting the Minimum standard, helped by the foundation provided by the State Pension. However, the picture becomes much more challenging when aiming for the Moderate and Comfortable standards. Even members earning higher salaries may need to contribute significantly more than automatic enrolment minimums to achieve these outcomes.

The research also highlights the growing tension between saving for retirement and getting on the housing ladder. For many members, delaying pension contributions to save for a property deposit can have a lasting impact on retirement outcomes. Meanwhile, members who continue renting into retirement may find it significantly harder to achieve even a basic standard of living, as housing costs are not included within the headline RLS figures.

Find out more in our publication below.

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Next steps

Our call to action for trustees, providers and employers:

• Help members understand what their preferred retirement lifestyle could look like and how much it may cost.
• Support members in balancing competing financial priorities, including pension saving and home ownership.
• Provide tools and guidance that help members track progress towards retirement goals and understand the actions available to improve outcomes.
• Encourage regular engagement with retirement planning, making pensions more tangible and relevant throughout working life.

The RLS provide a valuable framework for discussing retirement adequacy, but they're only a starting point. Members' circumstances will vary, particularly when housing costs are taken into account. Trustees, providers and employers all have an important role to play in helping savers understand their options and make informed decisions that improve long-term outcomes. 

For more information on retirement adequacy and improving member outcomes, please get in touch.

This communication has been compiled by Hymans Robertson LLP® (HR) as a general information summary and is based on its understanding of events as at the date of publication, which may be subject to change. It is not to be relied upon for investment or financial decisions and is not a substitute for professional advice (including for legal, investment or tax advice) on specific circumstances. HR accepts no liability for errors or omissions or reliance on any statement or opinion. Where we have relied upon data provided by third parties, reasonable care has been taken to assess its accuracy however we provide no guarantee and accept no liability in respect of any errors made by any third party.