The average pension pot in the UK varies significantly by age, reflecting how long people have been saving and how their investments have grown over time. This guide breaks down average pension pots by age group and explains how these figures compare with what is typically needed for a comfortable retirement.

What is the average pension pot in the UK?

The average UK pension pot is £32,700, based on the latest data from January 2025. Pension savings vary widely by age, starting at around £5,500 for under-25s and rising to approximately £145,900 for people aged 65 to 74, reflecting longer contribution periods and compound growth over time.

While useful as a benchmark, the average pot is well below what most people need in retirement. To fund a moderate retirement income of £31,700 per year, a private pension pot of roughly £330,000 to £490,000 is typically required alongside the full State Pension. With around 43% of working-age adults undersaving, many people face a shortfall between current savings and realistic retirement needs.

Expert insight

“The average pension pot is often misunderstood as a goal rather than a reference point. What really matters is how your savings line up with the lifestyle you want in retirement and how long your money needs to last. Starting early, increasing contributions gradually, and reviewing your plan regularly can make a bigger difference than chasing national averages, according to Michele Tieghi, finance expert at psyfi money”.

What is the average pension pot by age in the UK?

Pension savings in the UK typically grow as people move through their working lives, before peaking around retirement and declining as income is drawn. The figures below show the median pension pot by age group, which gives a more realistic picture than averages that can be skewed by very high balances.

1. Ages 16–24: around £5,500

Most people in this group are only just entering the workforce. Pension saving is often limited to minimum auto-enrolment contributions, so balances remain low.

1. Ages 25–34: about £18,800

Pension pots grow quickly during this stage as full-time employment becomes more common and regular contributions begin. Auto-enrolment plays a major role here.

1. Ages 35–44: roughly £39,500

Savings tend to accelerate as careers progress and earnings rise. Many people also start increasing contributions beyond the minimum during this period.

1. Ages 45–54: around £80,000

This is often a peak earning phase, allowing larger pension contributions. As a result, pension pots more than double compared with the previous age band.

1. Ages 55–64: approximately £137,800

Pension wealth grows more slowly but reaches a high point as people prepare for retirement and may make catch-up contributions.

1. Ages 65–74: about £145,900

Pension pots typically peak in early retirement, before regular withdrawals begin to reduce balances.

1. Ages 75 and over: around £59,700

The sharp fall reflects ongoing drawdown rather than poor saving, with pensions being used alongside the State Pension to fund later-life living costs.

These figures show how pension saving is a long-term process, with the biggest growth usually happening in mid to late career. While useful for benchmarking, they also highlight that many people remain well short of the level needed to support a moderate or comfortable retirement without additional income sources.

How much do we need to save towards retirement?

How much to save depends on the lifestyle target in retirement and how much income will come from the State Pension. A practical way to think about it is to estimate the annual spending needed, subtract expected State Pension income, then work out the size of the savings pot required to cover the gap over a typical retirement.

Start with a retirement income target

In the UK, retirement budgets are often grouped into three broad lifestyle levels for a single person:

• Minimum lifestyle: around £13,400 a year
• Moderate lifestyle: around £31,700 a year
• Comfortable lifestyle: around £43,900 a year

These figures are expressed in today’s money and are designed to reflect real spending patterns, such as housing, transport, food, leisure, and holidays.

Factor in the State Pension

The full State Pension provides a baseline income, but it rarely covers more than a basic retirement on its own. This is why most people need additional savings in workplace pensions, personal pensions, ISAs, or other investments to reach a moderate or comfortable standard.

What does that mean in pension pot terms?

As a broad guide, the additional savings needed to fund a retirement over roughly 20 years can look like this:

• Minimum lifestyle (single): around £26,000 of extra savings
• Moderate lifestyle (single): around £394,000 of extra savings
• Comfortable lifestyle (single): around £638,000 of extra savings

For couples, the numbers vary because two State Pensions can cover more of the baseline spending. A minimum lifestyle may be close to achievable with the State Pension alone, while moderate and comfortable lifestyles usually still require substantial private savings.

Why these numbers are only a guide

Retirement saving targets are sensitive to a few variables that can move the goalposts:

• How long retirement lasts: living longer means savings must stretch further.
• Inflation: prices can rise faster than expected, increasing the income needed.
• Investment returns during retirement: many pensions stay invested in drawdown, so the pot is not necessarily a static lump sum.
• Housing costs: targets often assume being mortgage free. Ongoing rent or a mortgage can materially increase the amount needed.

A simple way to sanity check progress

Rather than fixating on one “perfect” number, many people use a rough benchmark based on earnings:

• By around 30: aim for savings roughly equal to 1x annual salary
• By around 40: around 2x annual salary
• By around 50: around 4x annual salary
• By around 60: around 6x annual salary

These are directional markers, not rules. The right target depends on retirement age, expected lifestyle, and whether saving started early or later in life.

What is a good pension pot by 30, 40, 50, and 60?

Salary based targets can be easier to follow than fixed numbers because they scale with income. A commonly used benchmark is:

• By 30: aim for 1 times annual salary saved
• By 40: aim for 2 times annual salary saved
• By 50: aim for 4 times annual salary saved
• By 60: aim for 6 times annual salary saved

These are not rules and they do not fit every situation, but they help identify whether contributions are broadly on track.

Why salary benchmarks can work well

Salary benchmarks adjust for different earning levels and make it easier to set contribution goals. Someone earning £30,000 and someone earning £90,000 will not need the same fixed pension pot by 40, but they may need a similar savings rate relative to income to maintain lifestyle.

Is the minimum workplace pension contribution enough?

For many people, minimum workplace contributions are a starting point rather than a finish line. Auto enrolment improves participation and creates consistent saving habits, but it may not build a pot large enough for a moderate or comfortable retirement, especially for people who start later, take career breaks, or plan to retire early.

When minimum contributions are more likely to fall short

Minimum saving is more likely to be inadequate if any of the following apply:

• Pension saving started after the early twenties
• There were several years with no contributions
• Income rose over time but contributions stayed at the minimum
• Retirement is planned before State Pension age
• Housing costs in retirement will be high, such as ongoing rent

How does the State Pension affect retirement planning?

The State Pension is a foundation, not a full plan for most people. Eligibility depends on National Insurance years, and the full amount requires a long contribution record. Even when received in full, the State Pension typically covers only a portion of the spending required for a moderate lifestyle, so private savings usually fill the gap.

What to do next

• Check how many qualifying National Insurance years are recorded
• Review any gaps and whether they can be filled
• Treat the State Pension forecast as the baseline for planning

Why are pension pots so different between people of the same age?

Two people in the same age group can have very different outcomes because pension saving is shaped by earnings, contribution rate, employer support, and time in the market. The biggest drivers are:

• Contribution consistency: long gaps reduce outcomes dramatically
• Employer contributions: higher matching increases pot size over time
• Investment growth: long time horizons allow compounding to work
• Charges: small fee differences can compound over decades
• Employment type: self employed workers often miss employer contributions

How can you boost your pension pot above average?

Improving a pension outcome usually comes from a few repeatable actions rather than constant tinkering. The most effective steps are:

Increase contributions in small increments

A one or two percentage point increase can meaningfully change the pot size over time, especially when done earlier. A practical approach is to increase contributions after pay rises, so lifestyle impact feels smaller.

Maximise employer matching

If the employer matches contributions above the minimum, it is often the highest value saving option available because it increases the contribution rate without requiring the full increase from take home pay.

Review the investment approach

A pension invested too cautiously for decades may grow slowly, while one invested too aggressively close to retirement can experience volatile swings at the wrong time. The right balance depends on timeline and risk tolerance.

Consolidate old pensions where appropriate

Many people have multiple workplace pensions. Consolidation can make planning easier and may reduce fees, but it is not always suitable, especially where benefits or guarantees would be lost. Any consolidation decision should consider charges, investment choice, and features.

What if you are self-employed and have no workplace pension?

Self-employed workers often need a different approach because there is no employer contribution and no auto enrolment. Regular contributions to a personal pension or SIPP can replicate workplace saving, and tax relief can still improve the effective cost of contributions. The most important factor is consistency, since missing ten years of saving can be hard to recover later.

Frequently asked questions

What is the average pension pot for someone in their 30s?

For people aged 25 to 34, the median pension pot is £18,800. For those aged 35 to 44, it rises to £39,500. The jump reflects more years of contributions, higher earnings, and more time for investment growth.

What is the average pension pot for someone in their 50s?

For people aged 45 to 54, the median pension pot is £80,000. For those aged 55 to 64, it rises to £137,800. This tends to be the period where pensions accelerate due to peak earning years and catch-up saving.

Why does the pension pot fall after age 75?

Most people start drawing from their pension in retirement, either as regular income or lump sums. Over time, withdrawals reduce the remaining balance. That is why the median pot for people aged 75 plus is lower, even if the person saved well earlier.

Is £100,000 a good pension pot in the UK?

£100,000 is above the median for many working age groups, but whether it is sufficient depends on retirement age, other savings, housing costs, and the target lifestyle. For a moderate lifestyle, the required pot is often far higher, especially for single retirees relying mainly on their own savings.

How can someone catch up if they feel behind?

The most effective catch-up levers are raising contributions, maximising employer matching, and avoiding long gaps in saving. Later in life, planning becomes more about contribution rate and timeline than perfect investment timing.

Final thoughts

According to psyfi money founder Michele Tieghi, the average UK pension pot can provide useful context, but it is rarely the best planning tool on its own. The better approach is to compare pension savings by age, set a clear retirement lifestyle target, and adjust contributions gradually to close any gap. Small improvements made consistently often matter more than one off big changes.