4. How Much Is Enough?

Have you ever looked at your bank balance, savings, or pension and wondered, “Is this actually enough?”  You’re not alone – and in this episode, I share the moment I nearly fell off my chair after seeing the UK’s standard guideline pension figures.

We dive into what “enough” really means, not just as a number, but as a feeling shaped by your lifestyle, values, health, and goals. I’ll walk you through:

• Why “enough” is different for everyone.
• How lifestyle creep can move your financial goalposts.
• The Pensions and Lifetime Savings Association (PLSA)'s suggested figures for moderate and comfortable retirements.
• A simple rule-of-thumb formula for estimating your target pot.
• The reality of average and median UK pension savings – and why you’re probably not alone if you feel behind.
• My four-tier framework: minimum, moderate, comfortable, and dream lifestyles.

This isn’t about panic – it’s about clarity. You’ll get practical ways to break big targets into manageable steps and ideas for building your “enough” through multiple sources, from pensions to property to lifestyle changes.

Resources mentioned:

• The Psychology of Money by Morgan Housel
   📖 Read it on Amazon → https://amzn.to/45xvBzR
  🎧 Listen on Audible (free 30-day trial) → https://amzn.to/3JxJ5UQ

(As an Amazon Associate, I earn from qualifying purchases at no additional cost to you.)

Figures Recap

Here are all the key numbers from this episode for easy reference:

• Full UK State Pension: ~£11,973/year (Aug 2025)

Guideline Pension Pot Targets (PLSA):

• Single-person household:
  • Moderate lifestyle: ~£390,000-£490,000
  • Comfortable lifestyle: ~£650,000–£820,000
• Two-person household (combined):
  • Moderate lifestyle: ~£400,000–£500,000
  • Comfortable lifestyle: ~£720,000–£900,000

Rule of Thumb (20–25× desired annual retirement income):

Current UK Pension Pot Data, ONS :

• Median: ~£87,000 (ages 55–64)

Four-Tier Lifestyle Targets:

1. Minimum lifestyle: £58,000 (single), £0 additional (couple)
2. Moderate lifestyle: £390,000 (single), £400,000 (couple)
3. Comfortable lifestyle: £650,000 (single), £720,000 (couple)
4. Dream lifestyle: £1 million–£1.5 million+

These figures are here to help you visualis

Chapters

• 0:00 Intro & Welcome
• 0:56 Recap of Episode 3 & defining "enough"
• 2:38 Why most of us never define “enough” & the moving goalpost problem
• 3:45 PLSA guideline pension pot figures & rule of thumb
• 6:18 Median UK pension pots
• 8:25 Four lifestyle tiers (Minimum, Moderate, Comfortable, Dream)
• 12:09 Many paths to “enough”
• 12:52 Homework
• 13:49 Dream Life Calculator
• 15:36 Next episode