Recalibrating retirement The PLSA's retirement standards 2025/26

What does a “comfortable” retirement really mean?

According to the PLSA, a “comfortable” retirement doesn’t necessarily mean lavish spending. It means financial freedom and lifestyle flexibility. The PLSA regularly updates its definitions to reflect changing living standards, inflation, and consumer expectations. Under the current PLSA’s definition, a comfortable retirement enables[1]:

• Two weeks’ holiday in Europe each year, plus UK weekend breaks
• Regular dining out and cultural activities
• Running a car with few limitations
• A generous budget for clothing, tech, and leisure

Why the update matters

The RLS act as a national benchmark, offering a snapshot of how inflation, longevity, and changing lifestyles are shaping the future of retirement. While, as our Wealth Index data shows, these figures may appear modest to many, they serve as a useful reference point for assessing long term financial security.[2] The Saltus Wealth Index, based on biannual surveys of over 2,000 people with £250k+ in investable assets, measures the confidence and priorities of the UK’s high-net-worth population.

Planning your retirement

Retirement planning is often less about reaching a specific financial target and more about supporting a lifestyle that feels meaningful. That might mean more travel, more time with family, or simply more freedom in your day-to-day choices.

Maintaining your lifestyle in retirement means more than just reaching a savings goal. It’s about keeping the choices, routines, and comforts that matter to you. It requires a strategy that accounts for volatility, inflation, interest rate shifts, market cycles, and tax efficiency.[3] Just as importantly, it should be flexible enough to respond to major life events and changing circumstances, so your retirement plan remains aligned with your goals over time.

Reviewing your retirement plan

The PLSA’s update is a valuable prompt, but it’s not the final word. For many, the key question is shifting from “Do I have enough?” to “Does my plan support the life I want to live?”

With rising costs and longer life spans, even if you have a well-established financial plan you will benefit from revisiting it regularly. Portfolio diversification, tax wrappers, drawdown strategies, and liquidity planning all play an important role in sustaining a lifestyle that extends beyond simple comfort. A financial adviser can help you understand how these might affect your options.

Tools and guidance to stay on track

The Saltus pension calculator can be a useful starting point in assessing whether your current plans align with your future aspirations. The next step? Working with a financial adviser to build a detailed cash flow plan and retirement strategy that’s resilient and personalised.

Key considerations for reviewing your retirement plans

This PLSA revision serves as a timely nudge to:

• Reassess spending and longevity assumptions
• Adjust withdrawal strategies as needed
• Diversify beyond traditional asset classes
• Revisit intergenerational and philanthropic goals

Final thoughts

The revised standards offer a timely reminder to pause and reflect on your retirement plans. If you’re unsure whether your goals are on track, or if you’re questioning your approach, it might be worth speaking with a financial adviser.