In 30 seconds
- About £20,200 a year before tax, rising with inflation, to age 95, at 4% growth after charges.
- Age 60–66: the pot pays it all. From 67: the pot pays about £7,600 and the State Pension the rest.
- That beats the minimum retirement standard but falls well short of moderate (£32,700 to spend).
- A moderate retirement at 60 would need a pot of about £795,000.
Key figures
Single person, owns home, inflation 2.5%, in today's money.
The short answer
A single person who owns their home, retires at 60 with £300,000 in pensions and gets the full State Pension from 67 can take about £20,200 a year before tax, rising with inflation, and make it last to 95. That assumes investments grow by 4% a year after charges and prices rise by 2.5% a year.
That is comfortably above the minimum retirement standard (£13,900 a year to spend) but well short of the moderate one (£32,700).
Two stages: before and after the State Pension
The plan only works if you think of retirement in two stages:
- Age 60 to 66: the pension pot pays everything. With no State Pension yet, the whole £20,200 comes from the pot.
- Age 67 onwards: the State Pension takes over most of the load. The full State Pension is £12,548 a year in 2026/27, so the pot only needs to provide about £7,600 a year, in today's money.
| Age 60 to 66 | Age 67 onwards | |
|---|---|---|
| From the pension pot | £20,193 | £7,645 |
| State Pension | £0 | £12,548 |
| Total before tax | £20,193 | £20,193 |
| Total after income tax | £19,678 | £19,050 |
Spending the pot faster in your sixties and slower later is not a mistake: it is what lets the money last. But it does mean the pot is at its most exposed to a market fall in the first few years. See sequence risk.
How much the investment growth changes it
| Growth a year after charges | Income before tax, lasting to 95 |
|---|---|
| 2% (cautious) | £17,918 |
| 4% (middle) | £20,193 |
| 6% (optimistic) | £22,923 |
How much retiring later helps
Each year you work longer, you pay for one fewer year with no State Pension, and the pot has longer to grow. With the same £300,000 at 4% growth:
| Retire at | Income before tax, lasting to 95 |
|---|---|
| 60 | £20,193 |
| 62 | £21,393 |
| 65 | £23,489 |
| 67 | £25,133 |
What would a moderate retirement at 60 take?
The moderate Retirement Living Standard is £32,700 a year to spend for one person, which is about £37,700 before tax. Retiring at 60 on that, with the full State Pension from 67 and the same assumptions, needs a pot of about £795,000.
Things that would change this plan
- A lower State Pension. Check your forecast. Each missing year costs about £359 a year for life. Filling gaps may be worth it.
- A defined benefit pension on top, which reduces what the pot needs to provide.
- Part-time work in your early sixties, even a little, which takes pressure off the pot when it is most exposed.
- Renting or a mortgage. These figures assume you own your home outright.
- Care costs later in life, which are not included.
- The minimum pension age rising to 57 in April 2028 doesn't affect someone retiring at 60.
Try your own numbers with the retirement income calculator and the drawdown calculator. Before you commit, a free Pension Wise appointment or a regulated adviser can check the plan against your full situation.
Test your own pot in the drawdown calculatorFree, no sign-up, nothing you type leaves your browser.
Open the calculatorCommon questions
Is £300,000 enough to retire at 60?
For a modest retirement, yes, if you own your home and get the full State Pension from 67. It gives about £20,200 a year before tax at 4% growth. For a moderate standard, you would need much more.
What if I'm a couple?
Two full State Pensions change the picture a lot. A couple's minimum standard (£22,500) is covered by two State Pensions alone, so the pot mainly funds the years before 67 and extras.
Should I buy an annuity instead?
Some people use part of the pot for an annuity to cover essentials once the State Pension starts. Annuity rates change often, so compare quotes.
Sources
This guide is general information, not personal financial advice. Rules can change and your situation may differ. For free, impartial help, contact MoneyHelper, or speak to a regulated financial adviser.
