This new research highlights how unrealistic many British people are about private and public pensions payouts. Difficult to see how any pension plans that are affordable today by average wage ( circa 30-40K) employees can get near half of that annual pension payment. Here’s the word;
New research* undertaken by YouGov for leading UK wealth management and employee benefits firm Mattioli Woods reveals that UK adults believe they need an average after-tax household income of £42,456 a year (£3,538 a month), in today’s money, to feel financially secure and live comfortably in retirement. However, expectations vary considerably by age and region, highlighting contrasting perceptions of the income needed to enjoy financial security in later life.
The generational divide is particularly pronounced. Those aged 18–24 believe they will need £4,606 a month (£55,272 a year) to feel financially secure in retirement, compared with £3,021 a month (£36,252 a year) among those aged 55 and over – an annual difference of £19,020.
Regional expectations also differ sharply. Londoners anticipate needing the highest retirement income, at £4,441 a month (£53,292 a year). This compares with £3,868 a month (£46,416 a year) among people in the West Midlands and £3,699 a month (£44,388 a year) in the South East.
At the other end of the scale, people in the North East believe they will need £2,686 a month (£32,232 a year) to live comfortably in retirement – £21,060 less annually than the amount estimated by Londoners.
The research also found that those surveyed expect to retire at an average age of 65, although this varies across the country. Respondents in the South East and South West anticipate retiring at 67, while Londoners expect to leave work earliest, at 64.
Alongside differing retirement income expectations, rising living and housing costs were identified as the biggest threats to long-term financial security, cited by 40% in the study. This was followed by unexpected health or long-term care costs (39%), being unable to work or losing income (33%), and running out of money in later life (26%). A further 25% cited unexpected major expenses or family financial responsibilities.
Amit Joshi, Managing Director of Wealth at Mattioli Woods said: “Our research highlights the very different expectations people have about the income they will need to feel financially secure in retirement. While the average figure stands at more than £42,000 a year after tax, the substantial differences between age groups and regions show that retirement means different things to different people. There is no one-size-fits-all retirement income target. The amount someone needs will depend on their circumstances, financial commitments and the lifestyle they hope to enjoy. Understanding those individual needs is key to building a realistic picture of what financial security in later life could look like.
“With more than a quarter of people concerned about running out of money in retirement, it is important to look beyond a headline figure and consider how income, savings and wider financial plans can support the retirement someone wants.”
The findings underline the importance of understanding retirement income expectations in the context of individual circumstances. While £42,456 represents the average amount those surveyed believe they need to feel financially secure in later life, the significant differences across generations and regions highlight the value of a personalised approach to retirement planning.
Mattioli Woods recently integrated Kingswood Group under a unified brand, following its October 2025 merger. The combined business oversees more than 30,000 clients, with over 200 financial advisers across more than 40 UK offices. The Group says the integration strengthens its position as a national wealth manager and enhances its ability to deliver joined-up wealth planning, investment management and employee benefits services.
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