The question, "What is the average pension for a retired person in the UK?" has a multifaceted answer, combining different income streams. For the financial year ending (FYE) 2023, the Department for Work and Pensions reported an average weekly income of £267 for single pensioners and £561 for couples after housing costs. The total income often includes the State Pension, private pensions, investments, and earnings. While these average figures provide a baseline, they do not reflect the wide diversity of financial situations among retirees.
Sources of retirement income
For most retirees in the UK, income is drawn from a combination of state and private pension sources. Understanding these components is crucial for retirement planning.
- State Pension: Nearly all UK pensioners receive some form of State Pension. The full rate for the new State Pension (for those retiring after April 2016) was £11,973 per year in 2025/26. The amount received depends on a person’s National Insurance record, with 35 qualifying years needed for the full sum.
- Private Pensions: These include both workplace and personal pensions. A workplace pension is one set up by an employer through auto-enrolment, with contributions from both the employee and employer. A personal pension, like a Self-Invested Personal Pension (SIPP), is set up by an individual and offers more control over investments. Around 70% of pensioners received income from private pensions in 2024.
- Other Income: Many pensioners also supplement their income with money from savings, investments, or earnings if they continue to work part-time. Some may also receive income from buy-to-let properties or benefits such as Pension Credit.
Average UK pension by income source (FYE 2023)
Based on UK government statistics for FYE 2023, the average weekly income from different sources for pensioners was as follows:
- State Pension (average per week): £198.
- Occupational Pension (average for recipients): £210.
- Private Pension (average for recipients): £199.
- Earnings (average for recipients): £401.
The gap between average and recommended income
It's important to differentiate between average retirement income and the level needed for a comfortable lifestyle. The Pensions and Lifetime Savings Association (PLSA) publishes Retirement Living Standards to help people plan. These benchmarks outline the annual income required for a minimum, moderate, or comfortable retirement, excluding housing costs.
Comparison of average and PLSA retirement incomes
| Single Person (excluding housing costs) | Couple (excluding housing costs) | |
|---|---|---|
| Average UK Pensioner Income (FYE 2023) | £14,664 per year (£282 per week) | £30,940 per year (£595 per week) |
| PLSA 'Minimum' Standard | £13,400 | £21,600 |
| PLSA 'Moderate' Standard | £31,700 | £43,900 |
| PLSA 'Comfortable' Standard | £43,900 | £60,600 |
Note: PLSA standards are for 2025 (latest figures), while average income data is from FYE 2023.
As the table shows, the average pension income in the UK can place retirees between the 'minimum' and 'moderate' lifestyle standards. The State Pension alone is often insufficient to cover even the basic minimum, highlighting the need for private pension savings to achieve a desired standard of living.
Factors influencing average pension
Several factors cause the average pension to differ dramatically among individuals:
- Employment history: Defined Benefit (or 'final salary') schemes, now rare, offer a guaranteed income based on salary and service length. In contrast, Defined Contribution schemes rely on contributions and investment performance, introducing more variability.
- Gender: A significant gender pension gap persists, with men often retiring with larger pension pots than women. This is largely due to historical wage gaps, women taking career breaks for childcare, and differences in working patterns.
- Age: Older retirees may have benefited from more generous final salary pensions, while younger generations primarily rely on auto-enrolment Defined Contribution schemes. The average pension pot size increases with age for working individuals but can be skewed by historical factors.
- Region: Average pension pots show notable regional disparities, often reflecting differences in average earnings. Regions like the South East and London tend to have higher average pension savings than areas such as Northern Ireland.
Conclusion: Looking beyond the average
While statistics on what is the average pension for a retired person in the UK? provide a useful snapshot, they should be viewed as a starting point, not a definitive target. The average retirement income, composed of state and private pensions, is often not enough for the moderate or comfortable lifestyle standards defined by the PLSA. A retiree’s actual income will depend heavily on their individual circumstances, including their savings history, pension types, and other assets. For those nearing retirement, it is recommended to get a personalised pension forecast to understand their specific financial position. Organisations like Pension Wise provide free, impartial guidance to help with pension decisions, highlighting the importance of proactive planning to secure a desired retirement lifestyle.
- Disclaimer: This article provides general information and is not financial advice. Past performance is not a guide to future results. The value of investments can go down as well as up.
