There isn’t really such a thing as an “average” pension.
But the Pensions and Lifetime Savings Association has published research that looks at how many people are on target to reach one of three levels of retirement income, which it has termed “comfortable”, “moderate” and “minimum”.
In early 2023, it used the figure of £37,300 for a single person (£54,500 for a couple) as the definition of a “comfortable” annual retirement income; £23,300 (£34,000) for a “moderate” annual retirement income; and £12,800 (£19,900) for a “minimum” retirement income.
According to the study, which was carried out by researchers at Loughborough University, only 30% of the population are on target to receive a moderate retirement income, and just 9% are likely to enjoy a financially comfortable retirement.