The Retirement Wake-Up Call: What does a ‘Moderate’ lifestyle really cost?

Retirement can feel like a far-off concept, something to think about “later.” But later sneaks up quicker than you think. Conversations in your 40s and 50s often start to shift towards retirement, and that’s when the reality check hits: Do I actually have enough saved?

Chapter 12 of the SheFinance Workbook explores retirement savings - and the uncomfortable truth is that women face a 55% smaller pension pot than men, even though we live longer. That means our money has to stretch further.

What does retirement actually cost?

According to the Pensions and Lifetime Savings Association (PLSA), the annual spending benchmarks are:

• £14,400 per year for a minimum lifestyle (basic needs, a little fun).

• £31,300 per year for a moderate lifestyle (a holiday abroad, eating out, owning a car).

• £43,100 per year for a comfortable lifestyle (holidays, financial generosity, plenty of flexibility).

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For many women, the aspiration is at least “moderate.” But when you compare these figures with average pension pots, the gap is stark.

Why women fall behind

• Career breaks for childcare or caregiving.

• Lower earnings due to the gender pay gap.

• Less confidence or knowledge around pensions.

  
  

What you can do today

1. Check your pension statement. Do you know your projected pot size?

2. Increase contributions where possible. Even a small increase compounds massively over time.

3. Use the “salary multiple” rule of thumb: aim to have 1x your salary saved by age 30, 3x by 40, 6x by 50, and 10x by retirement age.

   
   

💡 Workbook prompt (Chapter 12): Write a short description of your ideal retirement

lifestyle. Then compare it to the actual numbers required. Where’s the gap? What steps could you take this year to close it?

Remember: the goal isn’t just to stop working - it’s to give yourself the freedom to choose whether you want to.