Retirement Planning
Are You on Track? UK 2026
Project your retirement readiness across conservative, base, and optimistic scenarios. Built around the State Pension, workplace pensions and SIPPs, ISAs, and the 25% tax-free lump sum — for anyone planning retirement in the UK.
Quick answer: There is no fixed UK retirement age. State Pension age is 66 (rising to 67 by 2028, then 68), and the full new State Pension pays about £11,500/year. You can normally access a private pension from 55 (57 from April 2028), taking up to 25% tax-free. Using the 4% rule you need roughly 25× your target income from your own pots — at £35,000/year that is about £875,000, less whatever the State Pension covers.
Your retirement readiness
Readiness Score
100/100
4% rule target
£875,000
26 years to retire
Conservative
£601,175
−2pp return, −10% saves
Base
£949,733
Your inputs as-entered
Optimistic
£1,512,019
+2pp return, +10% saves
Illustrative projection only — not a forecast or financial advice. Score = base projection ÷ 4% rule target, capped at 100, and counts only your own pots (the State Pension reduces the target you actually need). Real-world outcomes depend on returns, inflation, charges, and when you take the State Pension. Verify with an FCA-authorised adviser or Pension Wise.
Retirement by age — what the math says in the UK
Common target ages, with the specific UK planning consideration that dominates each.
Retire at 55–57 — earliest pension access
You can normally take a private or workplace pension from 55 (rising to 57 from April 2028), with up to 25% tax-free. But the State Pension is a decade or more away, so ages 55–66 are funded entirely from your own pots. ISAs are the natural bridge — tax-free and accessible at any age — so many early retirees run ISAs down first and leave pensions to grow.
Retire at 60 — the classic early target
A popular target, but still 6 years before the State Pension at 66. You will draw taxable pension income and/or tax-free ISA withdrawals to bridge the gap. Keeping taxable pension withdrawals inside the personal allowance and basic-rate band in these years is one of the biggest levers on your lifetime tax bill.
Retire at 66 — current State Pension age
The full new State Pension (about £11,500/year, 2024–25) begins, replacing a meaningful slice of a moderate retirement income and reducing what your own pots must cover. The 4% rule is most robust here because the horizon is around 30 years. Check your State Pension forecast on gov.uk — you need roughly 35 qualifying NI years for the full amount.
Retire at 67 — the near-future State Pension age
State Pension age rises from 66 to 67 between 2026 and 2028, so anyone born from April 1960 onward waits until 67. Working to 67 means fewer drawdown years and a larger pot — and you can defer the State Pension itself for roughly 5.8% more per year of delay if you have other income to live on.
Age 68 and beyond — the legislated rise
State Pension age is legislated to reach 68 between 2044 and 2046, and reviews may bring that forward — younger savers should plan on 68. There is no upper limit on working or on paying into a pension while you have earnings, and deferring the State Pension continues to add to it. Longevity, not a fixed age, is the real planning variable.
The 4% rule, in pounds
Withdraw 4% in year one, inflation-adjust the amount each year, and historical data suggests the portfolio lasts around 30 years. UK planners often use a slightly lower 3.5% given UK inflation, charges, and gilt yields. These targets are for your own pots — the State Pension covers part of your spending on top.
| Target annual income (GBP) | Portfolio (4%) | 3.5% (more conservative) |
|---|---|---|
| £20,000/yr | £500,000 | £571,429 |
| £30,000/yr | £750,000 | £857,143 |
| £40,000/yr | £1,000,000 | £1,142,857 |
| £50,000/yr | £1,250,000 | £1,428,571 |
| £70,000/yr | £1,750,000 | £2,000,000 |
| £100,000/yr | £2,500,000 | £2,857,143 |
Because the full State Pension adds about £11,500/year (2024–25), a couple both entitled to it receive roughly £23,000/year of inflation-linked income before their own pots are touched — often cutting the required portfolio by several hundred thousand pounds. Reference points: the PLSA Retirement Living Standards put a moderate single lifestyle near £31,000/year, comfortable near £43,000/year.
The State Pension — your inflation-linked floor
The State Pension is the foundation of most UK retirement plans: a government payment, increased each year by the triple lock, that lasts for life. It is separate from any workplace or personal pension.
| Detail | Current position |
|---|---|
| State Pension age | 66 → 67 (2026–28) → 68 |
| Full new State Pension | ~£221/week (~£11,500/yr, 2024–25) |
| NI years for the full amount | ~35 qualifying years |
| Deferral bonus | ~+5.8% per year deferred |
Check your personal forecast and National Insurance record on gov.uk — gaps can sometimes be filled with voluntary Class 3 contributions, which is often one of the highest-return moves available. Figures are 2024–25 and rise with the triple lock; verify the current year before planning around them.
Pensions, ISAs and the 25% tax-free lump sum
Your own retirement pots do the heavy lifting above the State Pension. The two workhorses are pensions (workplace or SIPP) and ISAs — taxed at opposite ends.
- Pension access from 55 (57 from April 2028): normally take up to 25% tax-free (the pension commencement lump sum), the rest taxed as income when drawn.
- Lump sum allowance £268,275: the overall cap on tax-free lump sums across all pensions. The old Lifetime Allowance was abolished from April 2024 and replaced by lump sum allowances.
- ISA — £20,000 a year, tax-free and any-age: the ideal bridge for retiring before you can touch a pension, and a source of tax-free income that does not push you into higher tax bands later.
- Pension annual allowance £60,000: the yearly limit on tax-relieved pension contributions (or 100% of earnings if lower), with up to three years of carry-forward. It drops to £10,000 once you flexibly access a pension.
- Employer match first: workplace-pension employer contributions are effectively free money — usually the highest-priority pound before extra ISA or SIPP saving.
Run the supporting calculators
Each one drills into a specific piece of the UK retirement plan.
Net Worth Calculator UK
Add pensions, ISAs, property and debts — get your full net worth and how it compares by age.
Pension Annual Allowance Calculator
How much you can contribute with tax relief this year, including taper and carry-forward.
Pension Tax Relief Comparator
See the tax relief on a pension contribution at basic, higher, and additional rates.
Average Pension Pot by Age
How your pension savings compare to the typical UK pot at your age (ONS data).
Portfolio Tracker UK
Track ISAs, SIPPs, shares, funds and crypto together, with performance over time.
Net Worth Tracker UK
Watch your whole financial picture — assets minus liabilities — update as you go.
Track your real retirement plan in Richify
Add your pensions, ISAs and investments, set your retirement age, and watch your readiness score update automatically as your balances change.
Get Richify — free on iOS & AndroidFree to start. No ads. No financial advice.
Frequently asked questions
What is the retirement age in the UK?
There is no fixed retirement age in the UK — the default retirement age was abolished in 2011, so you can keep working as long as you want. What matters are two separate ages. The State Pension age is currently 66, rising to 67 between 2026 and 2028 and then to 68 (legislated for 2044–2046, though this is under review and could be brought forward). And you can normally access a private or workplace pension from age 55, rising to 57 from 6 April 2028. “Retirement age” in practice means whichever of these applies to your plan — the calculator above lets you model any target age.
How much do I need to retire in the UK?
Using the 4% rule, you need roughly 25× your target annual spending from your own pots. At £30,000/year that is £750,000; at £40,000/year, £1,000,000. But the full new State Pension pays around £11,500 a year (2024–25) once you reach State Pension age, so your private pensions and ISAs only need to cover the gap above that. The PLSA “Retirement Living Standards” put a moderate single-person lifestyle at roughly £31,000/year and comfortable at about £43,000/year — useful reference points for your target income.
What is the State Pension age and how much is the State Pension?
State Pension age is currently 66 for both men and women. It rises to 67 between 2026 and 2028, and is legislated to reach 68 between 2044 and 2046 (under review). The full new State Pension is about £221 a week — roughly £11,500 a year (2024–25) — but you need around 35 qualifying years of National Insurance to get the full amount; fewer years means a proportionally lower pension. You can check your own forecast and NI record on gov.uk.
When can I access my private or workplace pension?
The normal minimum pension age is 55, rising to 57 from 6 April 2028 (so anyone born on or after 6 April 1971 will generally wait until 57). From that age you can normally take up to 25% of the pot as a tax-free lump sum, with the rest taxed as income when you draw it. The State Pension is separate and does not start until State Pension age. Many people who retire early plan a “bridge” from ISAs and pensions to cover the years before the State Pension begins.
What is the 25% tax-free lump sum?
When you start taking a defined-contribution pension, you can normally take 25% of it tax-free (the pension commencement lump sum), with the remaining 75% taxed as income as you withdraw it. There is an overall cap — the lump sum allowance — of £268,275 across all your pensions (unless you hold protection). The Lifetime Allowance that previously capped total pension savings was abolished from April 2024 and replaced by these lump sum allowances.
SIPP vs ISA — which is better for retirement?
Both are tax-efficient; they are taxed at opposite ends. A pension (SIPP or workplace) gives tax relief on the way in at your marginal rate and is taxed on the way out (after the 25% tax-free part) — best when your working-age tax rate is higher than your retirement rate, and essential for capturing employer contributions. An ISA is funded from taxed income but is completely tax-free on the way out and accessible at any age, which makes it ideal for bridging the years before you can touch a pension. Most people use both: pension for the employer match and higher-rate relief, ISA for flexibility.
What are the ISA and pension contribution limits?
The ISA allowance is £20,000 per tax year across all your ISAs. The pension annual allowance is £60,000 per tax year (or 100% of your relevant UK earnings if lower), tapering down for very high earners and reducing to the £10,000 money purchase annual allowance once you have flexibly accessed a pension. Unused pension annual allowance can often be carried forward for up to three years. Verify the current-year figures on gov.uk before contributing.
Does the 4% rule work in the UK?
The 4% rule comes from US data (the Bengen and Trinity studies) and assumes a 30-year retirement with a stock-heavy portfolio. UK researchers often suggest a slightly lower safe starting rate — around 3.5% — because of higher historical UK inflation, fund charges, and gilt yields. The inflation-linked State Pension provides a floor that reduces how much your own portfolio has to carry, so a blended approach (a lower rate on the portion of spending not covered by the State Pension) is common.
Do I need a financial adviser for retirement planning?
It depends on complexity. A straightforward plan (workplace pension + ISA + State Pension) can be self-managed with tools like this one. Regulated advice adds the most value around one-way decisions — defined-benefit transfers (which require regulated advice above £30,000), drawdown vs annuity, tax-efficient withdrawal order, and estate planning. In the UK, look for an FCA-authorised, ideally independent, financial adviser, and use the free, government-backed Pension Wise / MoneyHelper guidance for over-50s.
Is Richify financial advice?
No. Richify is a personal-finance education, tracking, and projection tool. It does not provide financial, investment, or tax advice and is not authorised by the FCA. The readiness calculator produces an illustrative projection from the figures you enter and simplified assumptions — not a forecast or guarantee. Verify your circumstances with an FCA-authorised adviser, and use Pension Wise / MoneyHelper for free guidance, before acting on any projection.
