Last updated: September 2026
A common question asked of us is, “how much do I need to retire at 60?”
It’s a widely shared goal, because most people at 60 still lead an active life. Many are keen to spend more time with their families, to travel and to have the freedom to do the things they’ve been unable to do due to work commitments.
If this is also a dream you have, you’ll no doubt be wondering, “how much do I need to retire?”, and that’s precisely what we’ll explore in this post. The honest answer is that there is no single figure: it depends on the lifestyle you want, the income sources you already have, and how long your money needs to last. What we can do is show you how to work out your own number, using the current UK rules and figures for 2026/27.
Key figures for 2026/27
Before looking at your own numbers, it helps to know the main rules that shape retiring at 60 in the UK:
- Full new State Pension: £241.30 a week, or around £12,548 a year (GOV.UK). The amount you receive depends on your National Insurance record.
- State Pension age: currently rising from 66 to 67 between 2026 and 2028. Anyone born on or after 6 March 1961 reaches State Pension age at 67 (GOV.UK timetable). If you retire at 60, that means around seven years before the State Pension starts.
- Earliest age to access a private or workplace pension: currently 55, rising to 57 from 6 April 2028, unless you have a protected pension age (GOV.UK). At 60, you can access your private pensions under either rule.
- Tax-free cash: you can usually take up to 25% of your pension tax-free, up to a maximum Lump Sum Allowance of £268,275 (GOV.UK).
- Personal Allowance: £12,570 for 2026/27, frozen until April 2031. Pension income above this is taxed as income.
How much income do I need if I want to retire comfortably at 60?
Retirement income isn’t necessarily limited to your private pension pot. You may have a State Pension, as well as savings and investments and perhaps income from a rental property that you can rely on to fund your retirement. Understanding how all these income sources work together is a core part of wealth management, especially when planning an early retirement.
A useful starting point is the Retirement Living Standards, published by Pensions UK (formerly the PLSA). The June 2026 update puts the yearly cost of retirement, after tax and assuming no mortgage or rent to pay, at (Retirement Living Standards):
| Standard | Single person | Couple |
| Minimum | £13,900 | £22,500 |
| Moderate | £32,700 | £45,400 |
| Comfortable | £45,400 | £62,700 |
These are national averages, so your own figure may be higher or lower depending on where you live, whether you still have housing costs and what you plan to do with your time.
A widely quoted rule of thumb is that you may need somewhere around 20–25 times your annual retirement spending to retire. So, for example, if you spend £25,000 per year, that rough rule would point to a retirement fund of £500,000–£625,000. Treat this as a very rough guide only. It doesn’t allow for your State Pension, any final salary pension, tax, inflation or how your investments actually perform, and retiring at 60 means your money may need to last 30 years or more.
The key thing is how much you will spend.
How to calculate your expenditure in retirement?
Start by working out your regular household expenses, including your weekly food shop and anything you would normally spend on travel, clothing and leisure pursuits.
Think about whether your expenditure will drop in retirement, for example if you no longer need to commute or your mortgage is paid off.
You’ll also need to factor in additional expenses. Many people plan to travel more or take up new hobbies in retirement, perhaps buy a new car. Spending often follows a pattern: higher in the early, active years, lower in the middle years, and potentially higher again later on if care is needed.
If you’re uncertain as to how much you might spend, some people use the “70 per cent rule” as a starting point. This suggests that a retiree may need around 70 per cent of their pre-retirement income to maintain a similar lifestyle. Again, this is only a rule of thumb, and your own spending plan will always be a more reliable guide.
Where will your retirement income come from?
Once you have an idea of what you might spend in retirement, it’s time to look at your potential income.
As we’ve already touched upon, this will come from two main sources, those being income, and capital.
Retirement income
Income in retirement is anything that is a regular source of funds. This could include a final salary pension, a State Pension, dividends from any company in which you hold shares, interest from savings and any rental income.
You can obtain an estimate of the income you’ll receive from your State Pension online.
It may be that you have various sources of income that commence at different times. If you were born on or after 6 March 1961, your State Pension won’t begin until you are 67, and some final salary pensions may not start paying out in full until 65. So, if you want to retire at 60, you will need another form of income to tide you over until you are eligible for your respective pensions.
Capital
Capital includes savings, investments and pensions. These are funds from which you can withdraw money as you need it so as to top up your retirement income.
Do proceed with caution, however, when accessing your capital, because if you draw too much, you could run out of money.
You may have come across the “4 per cent rule”, which suggests withdrawing around 4 per cent of your capital each year. It comes from historical research, largely based on US markets, and is not a guarantee. Retiring at 60 usually means a longer retirement, and the right level of withdrawal will depend on your investments, charges, inflation, market conditions and how long your money needs to last.
An example: bridging the gap to State Pension age
To show how the numbers fit together, take a single person who wants to retire at 60 on the moderate Retirement Living Standard of £32,700 a year, and whose State Pension starts at 67.
For the first seven years, all of that income would need to come from their own pensions, savings and investments: roughly £229,000 in today’s money before the State Pension begins. From 67, a full State Pension of around £12,548 a year would cover part of the cost, leaving the rest to be met from their own funds for the remainder of their retirement.
This simple illustration ignores tax, inflation and investment growth, all of which make a real difference. It does show why the years between 60 and State Pension age are often the most important part of planning to retire at 60. You can read more about the wider picture in our guides to the best age to retire in the UK and average retirement ages.
What if you don’t have enough money to retire at 60?
If your calculations have revealed that you won’t have enough to retire at 60, there are various options to consider.
You could try to save more each year leading up to your 60th birthday, or spend a little less. You could also review how your investments are arranged. A professional, independent investment management service can help you understand whether your investments are working as they should for your goals.
You could also look into the possibility of taking your final salary pension early, although it is vital to consider carefully that there may be disadvantages in doing so, such as a permanently reduced income. You might consider a phased approach, such as moving to part-time work at 60. Or you could think about pushing your retirement back a few years; if you are weighing up earlier options, our guide on how much you need to retire at 55 explains how the numbers change.
How to retire at 60 without running out of money?
If you have a defined contribution pension pot, buying an annuity is the main way to turn it into a guaranteed income for life. (A defined benefit, or final salary, pension already pays a guaranteed income.) However, the income depends on annuity rates at the time and the size of your pension pot.
An alternative is to flexibly draw down an income from your pension pot. This makes it possible to take as much or as little as you wish, whenever you need it. This method is not without risk, however, as your pot stays invested and, if you withdraw too much, you could run down your pension. Many people use a combination of the two over the course of their retirement. We compare the options in more detail in our guide to pension drawdown vs annuity.
It is also worth being aware that, from 6 April 2027, most unused pension funds and death benefits will be included in the value of an estate for Inheritance Tax purposes (GOV.UK). This may affect how some people think about which assets to draw on first.
Frequently asked questions
Can I retire at 60?
Yes. There is no fixed retirement age in the UK, and you can access private and workplace pensions from 55 (57 from 6 April 2028). The main question is whether your pensions, savings and other income can support you until your State Pension starts, and for the rest of your retirement after that.
How much do I need to retire at 60 in the UK?
It depends on the lifestyle you want. The Retirement Living Standards suggest £32,700 a year for a single person on a moderate standard and £45,400 for a comfortable one (June 2026 figures, after tax, excluding housing costs). Your total pot will depend on how much of that is covered by the State Pension and any other income.
Can I get my State Pension at 60?
No. State Pension age is currently rising from 66 to 67, and anyone born on or after 6 March 1961 will reach it at 67. You can check your own State Pension age and forecast on GOV.UK.
Is £500,000 enough to retire at 60?
For some people it will be, and for others it won’t. It depends on your spending, your other income, how the money is invested and how long it needs to last. A cash flow plan that models different scenarios is the most reliable way to find out.
Looking to find out how much you need to retire at 60? Take independent advice from the specialist retirement planners at PMW.
At Partridge Muir & Warren, we have been advising individuals and couples on their retirement options for more than 50 years. Our advice is independent, widely trusted and totally focused on the best interests and personal goals of our clients. Whether you meet our financial planners in Kingston or elsewhere across Surrey, we will look at your whole picture, not just your pension.
If you would like to start looking at whether you can retire at 60, why not get in touch with our friendly retirement planning team, and arrange your no-obligation consultation?
This article is for general information only and does not constitute financial advice. Tax rules can change and their effect depends on your individual circumstances.