What Is the Average UK Pension Pot? Savings by Age

Find out the average UK pension pot by age and how much you need for retirement. Learn about pension targets and tips to boost your savings.

Knowing the average UK pension pot can help you compare your own retirement savings and determine whether you are on track for a comfortable retirement. However, pension savings vary significantly depending on age, income, employment history, and whether someone has a workplace or private pension.

This guide explores the average UK pension pot by age, how much you need for retirement, and ways to increase your pension savings.

What Is the Average Pension Pot in the UK?

The average UK pension pot varies widely, but many people are not saving enough for a comfortable retirement.

  • 20s: Average Pension Pot £5,000 - £10,000

  • 30s: Average Pension Pot £20,000 - £30,000

  • 40s: Average Pension Pot £50,000 - £80,000

  • 50s: Average Pension Pot £100,000 - £150,000

  • 60s: Average Pension Pot £150,000 - £250,000

Source: FCA, ONS, and UK pension studies

While these figures provide a general guideline, many people approaching retirement do not have enough saved to maintain their desired lifestyle.

How Much Do You Actually Need in Your Pension Pot?

Experts estimate that to retire comfortably, you need a pension pot of around:

  • Basic (covers essentials): Annual income of £12,800 is needed which is a pension pot of £190,000

  • Moderate (more leisure, holidays): Annual income of £23,300 is needed which is a pension pot of £350,000

  • Comfortable (regular travel, financial security): Annual income of £37,300 is needed which is a pension pot of £600,000

Source: Pensions and Lifetime Savings Association (PLSA)

These figures assume you receive the full State Pension, which is £10,600 per year (2023/24), and withdraw money at a sustainable rate from your private/workplace pensions.

Why Are Pension Savings So Low for Some People?

Many people struggle to save enough for retirement due to:

  • Late pension start – People delay saving, missing out on compound growth.

  • Low contributions – Some only pay the minimum auto-enrolment contributions (8%), which may not be enough.

  • Frequent job changes – Pension pots are often left untracked when switching jobs.

  • Lack of pension knowledge – Many people underestimate how much they need for retirement.

How to Increase Your Pension Pot

If your pension savings are lower than average, here are ways to boost your retirement fund:

1. Increase Contributions

  • Aim to save at least 15% of your salary, including employer contributions.

  • If you can’t afford large contributions, increase by 1-2% per year.

2. Maximise Employer Contributions

  • Many employers match contributions – if yours does, take full advantage.

3. Use Tax Relief Benefits

  • Pension contributions get 20%-45% tax relief, depending on your income.

  • Higher-rate taxpayers can claim extra relief via Self-Assessment.

4. Consider Additional Savings (SIPPs, LISAs, ISAs)

  • Self-Invested Personal Pensions (SIPPs) offer investment flexibility.

  • Lifetime ISAs (LISAs) provide a 25% government bonus on savings (up to £4,000 per year).

5. Track and Consolidate Old Pensions

  • Many people have multiple workplace pensions from different jobs – consolidating them can reduce fees and simplify management.

Final Thoughts

The average UK pension pot is often lower than what is needed for a comfortable retirement. Ideally, by retirement age, you should aim for a pension pot of at least £250,000-£500,000, depending on your lifestyle goals.

If you are behind on savings, increasing contributions, maximising employer top-ups, and taking advantage of tax relief can help grow your pension faster.

For personalised advice, consider speaking to a financial adviser or using a pension calculator to check if you’re on track.