Retirement Planning
Am I saving enough for retirement?
March 19, 2026
The first questions that a new client asks their Talis IFA are often, ‘how much do I need to afford to retire?’, closely followed by, ‘am I saving enough?’
Our answer is usually based on our ‘life first, money second’ philosophy. Put another way, the answer to those questions depends on the retirement lifestyle that you aspire to.
That’s why a Talis IFA will spend time getting to know you, and understand your current position as well as what financial freedom means to you.
Once they’ve helped you clarify your objectives, they’ll work backwards to understand the income required, the size of the pension pot that might support it, and whether your current saving habits are on track.
Your lifestyle goals shape the answer
Retirement planning begins with defining what ‘comfortable’ looks like for you. That includes where you’ll live, how active you want to be, how much you’ll travel, and whether you expect to support children or grandchildren. Two people with identical pension pots can have very different outcomes depending on their lifestyle expectations.
Your goals also determine how long your money needs to last. Someone retiring at 55 may need to fund 30–40 years of spending, while someone retiring at State Pension age may need to draw less from their private savings.
Your age, your retirement age, and the time between them
How much you need to save depends heavily on:
- Your current age — the earlier you start, the more time your investments have to grow.
- Your target retirement age — retiring before State Pension age means bridging a gap with your own savings.
- The number of years in between until retirement — this determines how aggressively you need to save and invest.
A 40-year-old aiming to retire at 67 has 27 years of compounding ahead. A 55-year-old aiming to retire at 60 has just five years to prepare and will need a much larger pot or a more modest lifestyle.
How much pension is enough?
When it comes to the numbers, as a starting point, the Pensions and Lifetime Savings Association (PLSA) publishes the UK’s most widely used benchmarks for retirement spending. These figures represent annual expenditure needed for different lifestyles and assume you own your home outright.
For a single person:
- Minimum: £13,400/year
- Moderate: £31,700/year
- Comfortable: £43,900/year
For a couple:
- Minimum: £21,600/year
- Moderate: £43,900/year
- Comfortable: £60,600/year
Remember that these figures are just a guide – and what ‘comfortable’ means to you will have an impact on how much retirement income you need.
How much is the State Pension and when will I get it?
The State Pension provides a valuable foundation, but it won’t cover a full retirement on its own.
- The State Pension age is now 67 for most people. A lucky few can still claim it at age 66, plus a few months, and legislation is already in place to raise it to 68.
- In 2026/27 a full State Pension is likely to exceed £12,500 but you should carefully check what your entitlement is.
If you plan to retire before you reach your State Pension age, a Talis IFA can help you plan how to use your own savings to bridge the gap.
What size pension pot might I need?
A much-quoted US study suggested that a 4% withdrawal rate would prevent you running out of money before the end of your life. Even the author of the study has recommended caution over such a simple approach. Broad estimates like this can be very unhelpful because of the points already raised in this article. The answer to this question will vary from one person to another, meaning it is absolutely vital to consider your personal circumstances.
The real question: What do you want your retirement life to look like?
Whether you can retire early depends less on hitting a universal number and more on aligning your current financial planning with your future goals. Once you’re clear on the lifestyle you want, your Talis IFA can help you understand your options for getting there.
How Talis IFA can help
Our ‘life first, money second’ approach is based on developing a strong, trusted relationship, so that you feel comfortable sharing your life goals and concerns with your adviser. As you build that relationship, they’ll offer you clear, plain-English advice based on your best interests.
Your Talis IFA will work with you to define your hoped-for lifestyle in retirement, calculate the income required to support it, model different scenarios, and build a tax-efficient saving and withdrawal strategy. With expert guidance, you can understand whether you’re on track — and what steps will help you reach the retirement you want with confidence.
This article does not constitute tax or legal advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional advice. A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.
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