The cost of being single in retirement: £225k

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• Single pensioners need £225k more in their pension pot than couples to achieve a ‘moderate’ standard of living in retirement
• New analysis by Standard Life compares the pension savings needed by single and couple pensioners to achieve the Pension and Lifetime Savings Association (PLSA)’s three Retirement Living Standards: ‘minimum,’ ‘moderate,’ and ‘comfortable.’
• Single pensioners need to save £54,500 just to meet the PLSA’s minimum standard, while couples with two full State Pensions would not need any savings beyond the state pension to reach the same level

There’s a huge cost of being single in retirement according to new analysis from Standard Life, part of Phoenix Group. While couples can pool their savings and share expenses, couples must foot the bill alone – leading to a potential £225,000 difference in the savings needed to achieve a moderate standard of living in retirement.

Single retirees who want to achieve a minimum living standard, which includes enough for the basics and one week’s holiday in the UK a year but no car, would require an annual income after tax of £14,400 according to the PLSA¹. Assuming a full state pension (£11,973 a year²) is received, a retiree needs an additional income of £2,884 taking account of tax each year to maintain this standard of living. To buy an RPI linked annuity - which is a guaranteed income for life - they would need to have amassed around £54,500³ in retirement savings at current rates. In comparison, pensioner couples need an annual income of £22,400 to reach the same standard of living, however this would be covered by two full state pensions meaning they would not need to have accumulated any additional savings to cover a basic retirement lifestyle.

The MoneyHelper annuity tool was used to reveal the pension pots needed to secure the PLSA’s ‘minimum’, ‘moderate’ and ‘comfortable’ standard of living in retirement.

If you’re seeking a moderate retirement standard of living, which allows for a car and one two-week foreign holiday a year, the PLSA say single pensioners need an after-tax income of £31,300 per year. Assuming a full state pension is received, they would need an annuity which provides £24,010 a year, taking account of tax. To achieve this, they would need to save around £439,000. Pensioner couples, meanwhile, need an annual income, after tax of £43,100, which they could get if they also amassed £428,000 in their joint pension pot, meaning they would need to save £214,000 each – nearly half the amount of a single pensioner, assuming two full state pensions being received.

For a comfortable living standard in retirement, which allows for a three-week foreign holiday, a full kitchen and bathroom replacement every 10-15 years and a £1,500 a year clothing and footwear budget, single pensioners would currently need to accumulate a pot of around £709,000. Pensioner couples would need £709,000 between them, or £398,000 each – meaning a single pensioner would need to save £311,000 more that their couple peers to achieve the same lifestyle.

Retirement savings needed for single pensioners and pensioner couples to secure an annuity – guaranteeing an income for life:

^{* Figures assume retirement at the age of 66, single life annuity, no guarantee, paid monthly in arrears, linked to RPI, non-smoker with no underlying health conditions. Account for tax free income up to Personal Allowance and then income taxed at 20%. More detail in notes.}

Mike Ambery, Retirement Savings Director at Standard Life, part of Phoenix Group said: “Whether single by choice or by circumstance, solo living comes with a financial price tag. While it seems unfair, mortgage, rent, utility bills and holidays costs don’t simply halve for those living alone. The same applies to pension savings. While couples can combine their resources, single retirees need to build up much more to achieve the same lifestyle in retirement.

“Let’s not forget, relationships don’t always last, and the importance of pension planning extends beyond just those who are single today. Awareness of these figures can help when considering pension sharing in divorce settlements or preparing for a potential single retirement.

“It’s important to take control of your future financial happiness whether you’re single or in a relationship. Starting early, making regular contributions, and topping up savings where possible can make a real difference.”

ENDS

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Notes to editors

Calculations are intended only for the sole purpose of providing an illustration regarding the projection of savings and pensions. They should not be used with the intention to give an accurate representation of real-world outcomes. Notably, our calculations here assume the same pot and annuity rates for both people in a couple – in reality, one is likely to earn more than the other through their career and so are likely to have a bigger pot in retirement. Annuity rates can also differ depending on health.

Pot Calculations

Single pensioners

^{* Figures assume retirement at the age of 66, single life annuity, no guarantee, paid monthly in arrears, linked to RPI, non-smoker with no underlying health conditions. Account for tax free income up to Personal Allowance and then income taxed at 20%.}

Pensioner couples

^{* Figures assume retirement at the age of 66, single life annuity, no guarantee, paid monthly in arrears, linked to RPI, non-smoker with no underlying health conditions. Account for tax free income up to Personal Allowance and then income taxed at 20%.}

1. PLSA Retirement Living Standards - https://www.retirementlivingstandards.org.uk/details
2. Based on the new full state pension as of May 2025
3. Rates correct as of calculation in May 2025 via the MoneyHelper annuity tool

About Standard Life

• Standard Life is a brand that has been trusted to look after peoples’ life savings for 200 years.
• Today it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers’ pension scheme.
• Standard Life is part of Phoenix Group, one of the largest long-term savings and retirement businesses in the UK. We’re proud to be building on 200 years of Standard Life heritage together.
• Our products include a variety of Pensions, Bonds and Retirement options to suit people’s needs, helping our customers to invest and save for their future. We’re proud to offer a leading range of sustainable and responsible investment options.
• We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs and plan a future they feel confident about.
• The value of investments can go down as well as up and may be worth less than originally invested.