Retirement readiness is not simply about how much you have saved. It is about understanding the lifestyle you want, what that lifestyle could cost and whether your current plans are likely to support it.
Recent data from the UK Pensions Commission warns that 15 million working-age people are currently under-saving for retirement. Without proactive intervention, this figure could rise to 19 million.
A regular pension health check can help you understand where you stand, identify potential gaps and make informed decisions while there is still time to act.
What could your retirement lifestyle cost?
A useful starting point is to picture the retirement you want. Will your plans include regular holidays, maintaining a car, helping family members or spending more time on hobbies?
The Pensions UK (formerly PLSA) Retirement Living Standards illustrate the net annual income retirees may need after tax, assuming their home is fully paid off:
| Retirement Standard | One-person household | Two-person household | What it covers |
| Minimum | £13,400 | £21,600 | Essential needs with some room for social participation |
| Moderate | £31,700 | £43,900 | Greater financial security and more flexibility |
| Comfortable | £43,900 | £60,600 | More financial freedom and scope for additional luxuries |
The full new UK State Pension for 2026/27 is £241.30 a week, equivalent to approximately £12,547.60 a year. The amount you receive will depend on your National Insurance record.
These figures are a useful guide rather than a personalised target. Your own needs will depend on factors such as housing costs, health, family commitments and how you want to spend your time.
Three questions to assess your retirement readiness
1. Is your pension invested in a way that supports your plans?
Review your pension fund choices at least once a year. If your pension remains entirely in a provider’s default fund, its investment approach may not fully reflect your objectives, timescale or attitude to risk.
It is also worth checking whether your plan uses lifestyling. This process gradually moves investments away from stock market-related assets and towards fixed-income bonds as you approach your selected retirement age.
That may be appropriate for some retirement plans, but not for all. If the timing or destination of these changes does not fit how you intend to access your pension, it could affect the final value of your fund and how well it supports your retirement strategy.
2. What income are you currently on track to receive?
Log in to your pension provider’s portal or use the MoneyHelper Pension Calculator to obtain an illustration of what your pension could be worth at retirement.
You should also:
- Check your State Pension forecast.
- Review projections for all your pensions and other retirement savings.
- Estimate the monthly income these assets could provide at your intended retirement age.
- Compare that figure with the lifestyle cost you identified earlier.
This comparison can turn an abstract pension value into a clearer view of the retirement it may support.
3. Is there a gap between your plans and your projected income?
If your projected income falls short of your preferred lifestyle, consider the options available to you. Depending on your circumstances, these could include saving more, reviewing how your pension is invested, adjusting your intended retirement date or reconsidering the level of income you may need.
The earlier you identify a potential gap, the more time you may have to address it.
What about contributions and old pension pots?
Your contribution level and any pensions left with previous employers remain important parts of your overall position. We cover these topics in more detail in our article, Making the most of your pension: workplace pensions, contributions and consolidation.
Turn your pension figures into a retirement plan
A pension health check is not a one-off exercise. Your income, priorities, investments and intended retirement date may all change over time, so reviewing your position regularly can help keep your plans aligned with the future you want.
Bringing together your expected lifestyle costs, pension projections, State Pension entitlement and investment approach can provide a clearer picture of your retirement readiness. If you are unsure whether your plans are on track, a financial adviser can help you assess your options and make informed decisions.
Sources:
- Pensions UK – Retirement Living Standards:
https://www.pensionsuk.org.uk/Policy-and-Research/Topics/Retirement-Living-Standards - Pensions UK – 2024/25 Retirement Living Standards update:
https://www.pensionsuk.org.uk/News/Article/Latest-Retirement-Living-Standards-show-costs-for-Minimum-retiree-needs-have-fallen-while-Moderate-and-Comfortable-Standards-see-modest-rises - GOV.UK – Benefit and pension rates 2026 to 2027:
https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027 - GOV.UK – Check your State Pension forecast:
https://www.gov.uk/check-state-pension - MoneyHelper – Pension calculator:
https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/pension-calculator - Titan Wealth – Making the most of your pension:
https://www.titanwh.com/en-GB/individual-investor/news/making-the-most-of-your-pension-workplace-pensions-contributions-and-consolidation
Important Information
This document is for information purposes only and does not constitute personal financial advice. If you are unsure about whether a particular course of action is suitable for you, we recommend that you seek independent financial advice.
The value of investments and the income from them can fall as well as rise, and you may get back less than you originally invested. Past performance is not a reliable indicator of future performance. Tax treatment depends on individual circumstances and may be subject to change in the future. Tax and estate planning outcomes are not guaranteed.
Titan Wealth Planning Ltd is authorised and regulated by the Financial Conduct Authority (FCA reference number: 574458). Registered address: 101 Wigmore Street, London, W1U 1QU, United Kingdom.
