To compare your pension pot with the UK average, you only need two details:
Amet deserunt incididunt sunt fugiat occaecat ea sunt elit.
The figures are based on an estimate derived from 'Office for National Statistics Individual private pension wealth by age and sex: Great Britain, April 2018 to March 2020’ and include defined benefit pension wealth. The figures don’t include people with no private pension provision. This isn't personal advice. If you’re not sure what’s best for your situation, you should seek advice.
To compare your pension pot with the UK average, you only need two details:
Your age
Once entered, the tool will display the current UK average pension pot for someone your age. This gives you a useful comparison, so you can see how your savings stack up against people at typically the same point in their retirement planning journey.
Your approximate pension value
Add together the value of any pensions you have, including both defined contribution (DC) and defined benefit (DB) schemes. For DB pensions, you can use the latest transfer value or a rough estimate if that’s easier. The calculator uses this total to compare your current pension savings with the average for your age.
Don’t worry, you don’t need exact figures or detailed statements. A rough estimate is enough to give you a quick snapshot of where you stand.
Pension savings tend to build up gradually over time as people move through their working life. Naturally, the longer you contribute, and the more you save, the larger your pension pot is likely to become.
According to data from the Office for National Statistics (ONS), the average pension wealth in Great Britain varies significantly by age:
Age group | Average pension wealth |
|---|---|
16 – 24 | £5,500 |
25 – 34 | £18,800 |
35 – 44 | £39,500 |
45 – 54 | £80,000 |
55 – 64 | £137,800 |
65 – 74 | £145,900 |
75+ | £59,700 |
Source: Pension wealth: wealth in Great Britain, 2020–2022, Office for National Statistics (published January 2025).
As you might expect, younger people tend to have smaller pension pots. Those aged 16 to 24 have an average of around £5,500 saved, often because they’ve only recently started working or contributing to a pension.
Savings typically increase during your 20s and 30s as careers progress and regular contributions build up. By the time people reach their mid-40s to early 50s, the average pension pot has grown to around £80,000.
The highest average pension wealth appears among people aged 55 to 74, when many are approaching retirement or have recently retired. At this stage, the average pot is around £140,000.
For those aged 75 and over, the average drops to about £59,700, which is likely because many retirees are gradually drawing on their pension savings.
Remember, the figures here and in our pension pot comparison calculator are simply a broad benchmark, not a target. They show what people with pensions typically have saved at different ages, helping you understand where you sit compared with others in a similar position.
It’s also important to remember that not everyone has pension savings at all. According to the Department for Work and Pensions, almost half of the working‑age population (45%) aren’t putting anything into a pension each month.
There is no single “right” pension pot size. What you need depends on the lifestyle you want, your other savings and how long you expect to work.
The Retirement Living Standards offer a helpful guide. They outline three levels of retirement income:
To cover essentials: £13,400 a year for a single person, £21,600 for a couple.
Offering more flexibility and comfort: £31,700 a year for a single person, £43,900 for a couple.
To support a higher standard of living: £43,900 a year for a single person, £60,600 for a couple.
These figures are useful, but they are not rules. Plenty of people manage on less, especially if they don’t have rent or mortgage payments, a partner to share expenses with or other sources of income.
If you want to boost your pension savings, there are several ways to do it.
Increase your workplace pension contributions
If you are in a defined contribution (DC) scheme, you can usually increase your monthly contributions at any time. Many employers match part of what you pay in, so even a small increase can make a noticeable difference. If your budget allows, increasing your pension contributions can be a very tax‑efficient way to save for the future.
Take advantage of tax relief
Pension contributions benefit from tax relief, which means the government adds money to your pot. This makes pensions one of the most efficient ways to save for retirement.
Know your contribution limits
Most people can save up to the annual allowance each tax year before facing extra tax charges. This is usually more than enough for typical savers, but it is worth being aware of if you are making larger contributions.
Consider personal pension top‑ups
If you are self‑employed or want to save extra outside your workplace scheme, you can pay into a personal pension, such as a SIPP. These also benefit from tax relief.
One of the biggest perks of paying into a pension is the tax relief you get on your contributions. If you’re a UK resident under 75, every payment you make is automatically boosted by 20% basic‑rate tax relief. Higher‑rate taxpayers can claim back even more through their tax return – up to an extra 25% – and Scottish taxpayers on the top rates can claim up to 28%.
In most cases, your pension provider claims the basic‑rate relief for you, so all you need to do is make your contributions. If you’re entitled to higher‑rate or additional‑rate relief, you claim the extra through self‑assessment.
Tax relief applies whether you’re employed or self‑employed. If you work for yourself, contributions to a pension receive the same tax relief, and you can claim any extra relief through your tax return.
When you reach 55 (57 from April 2028), you can choose how to use your pension pot. The main options are:
Annuity
An annuity lets you use some or all of your pension pot to buy a guaranteed income, either for life or for a fixed number of years. It provides long‑term certainty because your payments are protected from market ups and downs. You can also choose features such as inflation‑linked increases and payments to someone after you pass away. You can take up to 25% of your whole pension fund as tax-free cash when you arrange your annuity.
Drawdown
You can also take up to 25% of your fund tax-free when you arrange income drawdown. Your remaining fund stays invested and you take money out when you need it. This gives you flexibility to adjust your income over time, but your pot can rise or fall depending on investment performance.
Taking cash in smaller lump sums (UFPLS)
You can leave your money invested with your current pension company and take money from your fund through Uncrystallised Funds Pension Lump Sums (UFPLS). This option lets you withdraw cash as and when needed. Each time you take a lump sum, 25% of that amount is normally tax‑free and the rest is taxed as income. As your remaining pension stays invested, your pot can rise or fall depending on investment performance.
Taking your pot as a full cash lump sum
Some people choose to withdraw their entire pension in one go, taking 25% of it tax-free. This gives you complete access to your money, but it can trigger a significant tax bill and leaves you without a pension pot to provide income later on. It’s important to think through the long‑term impact before choosing this option.
Blended approach
You might decide that a mix of options gives you the best balance of security and flexibility. For example, you could use part of your pension pot to buy an annuity that reliably covers your essential bills, while keeping the rest in drawdown to provide extra income and the chance for investment growth. This approach gives you the reassurance of a guaranteed baseline income, with the freedom to adjust the rest as your needs and spending change over time.
Page updated on 26th March 2026, Reviewed by Richard Groom