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What Is the Average Pension Pot in the UK? (By Age)
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The average pension pot in the UK varies significantly by age, reflecting how long people have been saving and how their
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.
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.
“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”.
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.
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.
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.
Savings tend to accelerate as careers progress and earnings rise. Many people also start increasing contributions beyond the minimum during this period.
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.
Pension wealth grows more slowly but reaches a high point as people prepare for retirement and may make catch-up contributions.
Pension pots typically peak in early retirement, before regular withdrawals begin to reduce balances.
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 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.
In the UK, retirement budgets are often grouped into three broad lifestyle levels for a single person:
These figures are expressed in today’s money and are designed to reflect real spending patterns, such as housing, transport, food, leisure, and holidays.
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.
As a broad guide, the additional savings needed to fund a retirement over roughly 20 years can look like this:
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.
Retirement saving targets are sensitive to a few variables that can move the goalposts:
Rather than fixating on one “perfect” number, many people use a rough benchmark based on earnings:
These are directional markers, not rules. The right target depends on retirement age, expected lifestyle, and whether saving started early or later in life.
Salary based targets can be easier to follow than fixed numbers because they scale with income. A commonly used benchmark is:
These are not rules and they do not fit every situation, but they help identify whether contributions are broadly on track.
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.
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.
Minimum saving is more likely to be inadequate if any of the following apply:
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.
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:
Improving a pension outcome usually comes from a few repeatable actions rather than constant tinkering. The most effective steps are:
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.
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.
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.
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.
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.
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.
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.
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.
£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.
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.
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.
A pension pot is the total amount of money saved in a pension scheme, which is used to provide income during retirement.
A comfortable retirement income is generally considered to be around £43,900 per year, allowing for a good standard of living.
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