The average pension pot in the UK varies depending on the source. According to the Department for Work & Pensions, the average pensioner receives around £17,200 each year after taxes and housing costs. However, the actual average retirement pension income in the UK is £361 per week, which works out as £18,772 per year, or £1,564 per month. Meanwhile, the average UK pension pot is £37,600, which would provide an income of £12,000 a year (including a full state pension) . Life insurance provider Aegon says that the average pension pot in the UK currently stands at nearly £50,000 with men saving an average of £73,600 and women saving an average of £24,900.

It is important to note that the amount needed for a comfortable retirement varies depending on individual circumstances, such as desired lifestyle, housing costs, and location. The full UK state pension is currently worth £10,600 a year, but a single pensioner needs an annual retirement income of £12,800 – at least – in order to fund a basic lifestyle. Assuming you qualify for the full government amount – £203.85 a week at present, or £10,600 a year – this means you need to find at least an extra £2,200 a year from your personal savings to fund retirement.

To estimate how much you need to save for retirement, you can use a pension calculator or seek professional advice. For example, someone with a salary of £20,000 would need £14,000 a year in retirement. If they retire at 67, you would usually plan for their pension to last until they’re 85. So 18 years multiplied by £14,000 would mean a pension pot of £252,000 at retirement.