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\n\t\tNew retirement research has come to light, and it\u2019s not the best news (Picture: Getty Images)<\/p>\n
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\n\t\tNew retirement research has come to light, and it\u2019s not the best news (Picture: Getty Images)<\/p>\n
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The current retirement age sits at 66 in the UK, but depressingly, it\u2019s expected to go up even higher.<\/p>\n
And in even more miserable news, the latest forecasts suggest pensioners in 2025 will be \u00a3800 per year worse off than those today \u2014 unless things change. It\u2019s why Work and Pensions Secretary Liz Kendall has announced a review into the state pensions age.<\/p>\n
But if you don\u2019t want to wait for your state pension<\/a> to kick in, exactly how much money do you need to retire?<\/a><\/p>\n Based on the current retirement age<\/a> of 66, or earlier if you\u2019re lucky, investment management company Fidelity has revealed the recommended amount of savings<\/a> you\u2019ll need by age 30 to achieve financial freedom after retirement.<\/p>\n Note that said age will rise to 67 between 2026 and 2028. It\u2019s then scheduled to increase again to 68 between 2044 and 2046.<\/p>\n How much do you need to save by age 30?<\/p>\n To be able to pack in work for good and live a comfortable life, you\u2019ll need to have saved<\/a> one times your annual salary<\/a> by your 30th birthday, according to Fidelity. To explain, if you\u2019re on \u00a330k by 30, that\u2019s how much you\u2019ll need to have stashed away in the bank. If you\u2019re on \u00a340k, that\u2019s what you should have saved. If you\u2019re on \u00a350k, you\u2019ll need around that amount to maintain your lifestyle. You get the picture.<\/p>\n Sounds daunting, right? Especially when the majority of our wages<\/a> go on rent or mortgage, bills and food. The news gets worse if you live in London, <\/a>as the average tenant spends roughly\u00a044.5%\u00a0of their take-home pay on rent.<\/p>\n To view this video please enable JavaScript, and consider upgrading to a web So, if you decide to pursue this retirement fund route, it means you can say goodbye to holidays, meals out, or any other simple pleasures for the foreseeable.<\/p>\n Also note that the longer you\u2019re in your job<\/a>, you\u2019ll likely be climbing the ladder and chasing better pay. So be mindful that whenever your salary increases, you\u2019ll have to increase the amount you put into your savings<\/a> each month.<\/p>\n \t\t Of course, it all depends on your current age, salary, and how much you have in the bank right now. <\/p>\n But say you\u2019re 21 with no savings and have a goal of reaching \u00a330k by the time you\u2019re 30. This means you have nine years to save. Every year, you\u2019ll need to deposit \u00a33,333.33. That equates to \u00a3277.78 monthly. <\/p>\n \t\t\t\tHow much do Brits have saved on average for their age?\t\t\t<\/p>\n Metro recently found out the average amount of savings Brits have by their age.<\/a> If you\u2019re looking to save \u00a330k by 30, or the exact amount of your wage, be it higher or lower, these benchmarks will make it easier for you when calculating your monthly savings deposits.<\/p>\n 18-24: People between the ages of 18 and 24 have \u00a33,636 in their savings on average. 59.9% of this category have less than \u00a31,000, while just 3.8% have over \u00a310,000.<\/p>\n 25-34: In the 25-34 age bracket, the savings number jumps slightly to \u00a33,748. Plus, 59.2% have less than \u00a31,000, and 8.6% have over \u00a310,000.<\/p>\n 35-44: If you\u2019re aged between 45 and 54, the standard amount of savings you have put away is \u00a39,402. In this demographic, the percentage with less than \u00a31,000 falls to 44%, and people with over \u00a310,000 also increases to 15.5%.<\/p>\n 55-73: Granted, some people in this age bracket are state pension age or older. But in terms of savings, on average, this age group has \u00a318,245 stashed away, while 37.9% have less than \u00a31,000. Finally, 27.5% have over \u00a310,000.<\/p>\n Now you\u2019ve seen the average savings, you\u2019ll likely have to save a little less monthly to reach your goal. That is, if your current finances align with the above. But again, if we\u2019re going by the \u00a330k by 30 mark, those between 18 and 24 should theoretically only need to save \u00a326,364.<\/p>\n For 25 to 30-year-olds, based on the average savings, the amount you\u2019d need to save is \u00a326,252. <\/p>\n How much is the State Pension?<\/p>\n As of April 6 2025, the new State Pension<\/a> increased by 4.1%. So, those eligible for the full amount will receive \u00a311,973 per year. That\u2019s just \u00a3230.25 per week. This is compared to \u00a3221.20 a week for the 2024\/25 tax year.<\/p>\n To qualify for this, you\u2019ll need 35 years of National Insurance<\/a> Contributions.<\/p>\n Those receiving the basic State Pension<\/a> will get less. For the 2025\/26 tax year, this number is \u00a3176.45 a week. That equates to \u00a39175.40 per year. <\/p>\n People earning the basic State Pension will usually need 30 years of National Insurance contributions.<\/p>\n If you have at least 10 qualifying years on your National Insurance record, you typically get a portion of the State Pension. Those with gaps in their National Insurance record will be able to make voluntary contributions to increase their State Pension amount.<\/p>\n \t\t \t\t\t\tHow much do you need for a comfortable retirement?\t\t\t<\/p>\n In 2022, researchers at Loughborough\u2019s Centre for Research in Social Policy created a set of three retirement living standards, detailing exactly how much money pensioners need to maintain each one.<\/p>\n The three standards are: minimum, moderate and comfortable. The higher you are on the scale, the easier your retirement will be financially.<\/p>\n For a comfortable retirement, you\u2019ll have zero money woes. But, to achieve this stress-free life, the research revealed you\u2019ll need to save \u00a343,100 per year for one person and \u00a359,000 for a couple. For a single person with a full State Pension to be retired for 15 years, the \u2018comfortable\u2019 lifestyle requires savings of \u00a3473,970 overall.<\/p>\n A weekly grocery shop in this camp equates to \u00a3130, while a more generous \u00a380 per couple can be spent on meals out every week. Still, only one small second-hand car is required, rather than one each for a couple.<\/p>\n However, this allows for more luxuries like regular beauty treatments, two European holidays a year, and other pricey leisure activities like theatre trips.<\/p>\n Find out the money margins for minimum and moderate retirement lifestyles here.<\/a><\/p>\n This article was originally published in June 2025.<\/p>\n \t\t\tComments Arrow Arrow
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\n\t\tDo you think you\u2019d be able to save your wage amount by the time you\u2019re 30?
\nHow much do I need to save each month to earn \u00a330k by 30?<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/07\/GettyImages-2200125278-7fa5.jpg\")
\n\t\tRelying on the State Pension alone won\u2019t put you in the best financial position (Picture: Getty Images)<\/p>\n
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