Retiring comfortably in the UK has become an increasingly pressing question amid economic uncertainty, persistent inflation pressures, and recent changes to pension taxation rules.
A new report from wealth manager Saltus, based on a survey of more than 2,000 high-net-worth individuals (HNWIs) with at least £250,000 in investable assets, sheds light on what affluent Britons believe it takes to enjoy a secure retirement – and highlights a potential gap between expectations and reality.
The surveyed HNWIs estimate they need an average pension pot of at least £930,000 to achieve a comfortable retirement. Notably, 35% of respondents believe the figure is well over £1 million.
This perception comes against a backdrop of more cautious financial sentiment. The overall Saltus Wealth Index stands at 61.3, down from 64.7 in August 2025, reflecting concerns over taxation, sluggish UK economic growth, and geopolitical volatility. Confidence in personal finances slipped from 92% to 87%, while trust in the broader UK economy has also softened.
Yet the numbers reveal a potential shortfall for many. The average pension pot among these HNWIs is currently £616,000, with more than half (53%) sitting at £600,000 or less. That suggests a significant portion of even relatively wealthy individuals may not be on track to meet their own retirement benchmarks if relying primarily on pension savings.
Annual pension contributions tell a similar story of underutilisation. In the 2024/25 tax year, HNWIs contributed an average of £31,500, just over half of the £60,000 annual allowance. Only 11% maxed out their allowance, though 14% plan to do so in 2025/26.
The report also flags growing worries about Inheritance Tax (IHT) changes affecting pensions. Just 9% of respondents are unconcerned about IHT exposure on unused pension pots, while 26% are actively exploring protective measures such as trusts.
Autumn Budget raises questions
“There has been a big increase in HNWIs enquiring if they should be taking action in light of the reforms unveiled in both the 2024 and 2025 Autumn Budget,” said Henrietta Grimston, a chartered financial planner at Saltus.
“What is of particular interest is the enquiries from those who previously were more relaxed about Inheritance Tax, especially where there are no direct descendants.”
This has led to more conversations around the strategies that can be adopted during one’s lifetime to reduce the Inheritance Tax liability, Grimston said.
“We are also seeing younger clients starting to focus on Inheritance Tax, even pre-retirement, with trusts often being a key consideration on their minds, especially where minors are involved.
“This is a marked change from a few years ago when often trusts were perceived as too complex by HNWIs and preference swayed towards other options. Care needs to be taken here that any early IHT planning does not derail meeting future expenses.”
What does other data say?
For context, many financial planners and retirement studies suggest more modest targets for average retirees. Recent PLSA-aligned figures point to around £31,700–£43,900 annually for a single person (or higher for couples) to achieve a “comfortable” standard, depending on location and spending habits.
Achieving that level typically requires a pension pot in the £500,000–£800,000+ range (plus state pension), assuming sensible drawdown strategies like the 4% rule and conservative investment returns.
However, the Saltus findings underscore a wider message: even among those considered financially well-off, retirement planning remains vulnerable to under-contribution, family support pressures (73% help adult children financially, 54% support parents), and evolving tax rules.
With intergenerational wealth transfer and IHT reforms in focus, more HNWIs appear to be shifting toward tax-efficient preservation rather than aggressive growth.
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