Many people don’t save enough for retirement because they don’t know how much money they’ll need when they stop working. Affordability and the cost of living also play a part.

You can use the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards to work out how much money you’ll need in retirement, and how much you need to save now to reach that target. This should help you achieve your desired level of financial security, flexibility and freedom once you retire.

Will you have enough?

The PLSA Retirement Living Standards outline the income you’ll need each year in order to achieve three different standards of living.

It’s important to consider all income sources available to you when reviewing your retirement income to see whether you’re on track or need to save more.

If you’re not currently on track, and you are still an active member of the Scheme, there are things you can do to boost your savings:

• Review your contribution rate and, if you can afford to, increase it; and
• Pay additional voluntary contributions

To find out more information about your retirement income and how to boost it, visit our basics page.

If you are an active member of a different pension arrangement you should find out how you can increase your savings with your current pension provider.

Please note that these figures will change in future as the cost of living increases. Deductions have also been made for Income Tax – you can check this for the current tax year and see what the UK government allows people to earn before they start paying Income Tax.

To find out more about the standards and the goods and services you’d be able to afford, go to the PLSA website.

You can also access Aviva’s Shape My Future: About You tool as an additional source to get an idea of the type of retirement lifestyle you want.

Pension Credit

Pension Credit is a benefit available to people who have reached pensionable age and are living on a low income.

It’s a way to top up your regular income and you may be eligible even if you have other income, savings or assets. There are two parts to Pension Credit: Guarantee Credit and Savings Credit. Both are separate from your State Pension.

What is it worth?

Guarantee Credit tops up your weekly income to a minimum level.

• If you’re single and your income is below £182.60 a week, Pension Credit will top it up to this amount.
• If you’re in a couple and your joint income is below £278.70 per week, Pension Credit will top it up to this amount.

Savings Credit is a bit more complicated as it’s worked out based on your total income, including savings. It’s possible that you qualify for both parts of Pension Credit so you should get in contact using the details in the box below to see if this is available to you.

Where can I find out more?

You can find out more about Pension Credit and how to apply on the government website. You can also get more information through services such as MoneyHelper.