People in the West Midlands believe they will need an after-tax household income of £46,416 a year to feel financially secure in retirement, according to new research.
The figure, equivalent to £3,868 a month in today’s money, is almost £4,000 higher than the UK average of £42,456 a year (£3,538 a month).
The research, carried out by YouGov for wealth management and employee benefits firm Mattioli Woods, surveyed 2,078 UK adults between 2 and 3 September 2026. It found that expectations in the West Midlands are higher than those in the South East, where people expect to need £44,388 a year.
Londoners have the highest expectations at £53,292 a year (£4,441 a month), while people in the North East believe they will need the least, at £32,232 a year (£2,686 a month). That is a gap of £21,060 a year between the two regions.
A generational divide
The study also revealed a sharp difference between age groups. Those aged 18 to 24 believe they will need £55,272 a year (£4,606 a month) in retirement, compared with £36,252 a year (£3,021 a month) among those aged 55 and over, a difference of £19,020.
Across the UK, respondents expect to retire at an average age of 65. People in the South East and South West anticipate retiring at 67, while Londoners expect to stop working earliest, at 64.
Rising costs the biggest concern
Rising living and housing costs were named as the biggest threat to long-term financial security, cited by 40% of those surveyed. This was followed by unexpected health or long-term care costs (39%), being unable to work or losing income (33%) and running out of money in later life (26%). A further 25% pointed to unexpected major expenses or family financial responsibilities.
Yasin Patel, Wealth Management Director at Mattioli Woods, said: “Our research highlights the very different expectations people have about the income they will need to feel financially secure in retirement. While the average figure stands at more than £42,000 a year after tax, the substantial differences between age groups and regions show that retirement means different things to different people. There is no one-size-fits-all retirement income target. The amount someone needs will depend on their circumstances, financial commitments and the lifestyle they hope to enjoy. Understanding those individual needs is key to building a realistic picture of what financial security in later life could look like.
“With more than a quarter of people concerned about running out of money in retirement, it is important to look beyond a headline figure and consider how income, savings and wider financial plans can support the retirement someone wants.”
