Are your pension savings ‘average’ for your age?

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When it comes to pension savings, it can be interesting to know how other people your age are doing. Find out what the ‘average’ is when it comes to pension wealth – and why it won’t be enough for everyone.

Average pension wealth in the UK

The Office for National Statistics (ONS) published a survey earlier this year looking at pension wealth in the UK across age groups. Here’s what they found. 

Age	Average pension wealth
16-24	£5,500
25-34	£18,800
34-44	£39,500
45-54	£80,000
55-64	£137,800
65-74	£145,900
75+	£59,700

Source: Wealth in Great Britain – Pension Wealth, Wealth and Assets Survey, April 2020-March 2022, ONS. Published 24 January 2025.

These figures don’t take into account the State Pension, but they do include money from:

• Defined contribution plans. These are the most common type of plan nowadays. You pay in and your employer usually does too, and the money is invested. There are different ways you can take your pension savings when the time comes. 
• Defined benefit plans, sometimes known as ‘final salary’ or ‘career average’ plans. You get a lifetime income from them that’s usually based on your salary and length of service. 

The averages include pension plans that people are currently paying into, ones they aren’t actively paying into, and ones they’re already receiving money from. (You can usually withdraw money from a pension plan from age 55, rising to 57 from 6 April 2028.)

People who have no wealth from pension plans have been excluded from the figures.

Is ‘average’ enough?

Everyone has different wants and needs in retirement, so everyone will require different amounts of money. But the short answer is no, ‘average’ is not necessarily going to be enough for everyone.

It’s worth checking out The Retirement Living Standards from Pensions UK. These can help you understand what your costs might look like depending on whether you have a minimum, moderate and comfortable lifestyle in retirement. 

For example, a moderate lifestyle might cost £31,700 a year for a one-person household. To achieve this lifestyle, Pensions UK estimate you might need a pension plan worth £330,000-£490,000 (*see assumptions below). This assumes that you’re using your plan to buy an annuity, which is a product that gives you a guaranteed income for life. It also assumes you’re receiving the full new State Pension, which people can only start claiming at 66, rising to 67 by 2028. 

But as you saw in the table earlier, the average pension wealth for any age group (including over-55s, who can start taking their money) is less than £330,000. That means ‘average’ won’t necessarily be enough for people who want a moderate lifestyle. You can find out more about the Retirement Living Standards estimates online.

There are other ways to take your money besides buying an annuity. For example, you can take a flexible income (drawdown), where you choose how much money you take and when. But if you were to withdraw too much too soon, you could run out. Some people take their money in a combination of ways. You can find out more about the options on MoneyHelper.

Overall, averages can help us see trends and patterns. For example, you’ll see the average pension wealth starts to dip among the oldest age, likely because they’re spending their pension savings. But the most important thing to think about is you. So do check how much you’re likely to need for your own goals. Then you can work out if you’re on track for the life you want.

*Rounded illustrative indicative figures based on annuity rates ranging from £5,000 to £7,500 per £100,000. Rates vary according to the type of product and saver circumstances including location and health. Provided as an illustration only, annuity rates change frequently. 

How do you check if you’re on track for your retirement?

To find out if you could be on the right track for the retirement lifestyle you want, you’ll need to check the value of your pension plan. You can usually do this online or via your provider’s app, if they have one. You can check the value of your Standard Life pension plan online or on our app. You might have more than one pension plan, so remember to check the value of each.

If you have a defined benefit plan and you’re not sure how its value is calculated, you could ask the employer that set it up, or your provider.

You can use our pension calculator to get an idea of how much you might get from your pension plans in future.

If your pension savings aren’t where you want them to be, don’t panic; there may well be things you can do to help you reach your retirement goals. 

Even if you are where you want to be right now, it’s still important to regularly check you’re comfortable with how your pension savings are doing.

What can you do if you’re not on track?

If you’ve got a defined contribution plan, you normally pay in a minimum of 5% of your ‘qualifying earnings’ (these are a portion of your earnings), while your employer pays in 3% – so, a minimum of 8% total. If you can afford to and think it’s right for you, you could consider increasing your payments. If you’re not sure how to do this, check with your provider. 

Your employer might be willing to pay in more than their minimum or even match what you’re putting in up to a particular amount, so it’s worth asking them what’s possible. 

Pension plans come with tax benefits too, which means the government gives you a helping hand while you’re saving. 

Plus, money paid in is invested, meaning it has the potential to grow over the long term. Just keep in mind the value of investments can go down as well as up and could be worth less than was paid in. 

All of these things could make a big difference to your pension savings over time. 

If you’re a long way off retirement, you still have plenty of opportunity to experience these benefits. And even if you’re getting closer to it, you might still have time to help give your pension savings a boost.

Already retired?

It might be worth turning your attention to your State Pension. If you’re not on track to get the full State Pension, or you’re not receiving the full amount, there may be things you can do to help increase it. Take a look at our recent article. 

What’s next?

Want to increase your monthly payments or make a one-off payment into your Standard Life pension plan? You may be able to do this online or on our app. If your employer set up your plan and you want to change your monthly payments, check with them to see how it works.

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The information here is based on our understanding in August 2025 and shouldn’t be taken as financial advice.

A pension plan is an investment. Its value can go down as well as up and it could be worth less than was paid in.

Standard Life accepts no responsibility for information in external websites. These are provided for general information.