Averages for London won't tell you your number. Your pensions and savings will.
See if you're on trackFree to check. No card required. Takes about two minutes.
Retirement Planning in London: How to Work Out Your Number and Whether You Are on Track
Start with the London retirement number
In Inner London the £561,025 target reflects day-to-day costs that sit 7% above the UK average, and that's before you count housing. A 40-year-old on £90,000 in London often has the salary to clear the target if contributions and investment returns cooperate, but the salary alone is not the answer. Salary sacrifice into your workplace pension reduces your taxable income while building the pot, which for most high earners in Inner London is the single most useful lever. The trap is the bonus: a £10,000 bonus paid as take-home becomes about £5,800 after 40% income tax and 2% National Insurance, but a £10,000 bonus sacrificed into your workplace pension is the full £10,000 in the pot.
Find every pension you have
In Inner London the old workplace pensions are more numerous than elsewhere because job churn is higher. A 42-year-old may have left three or four schemes behind, each with £5,000-£30,000 in them, and never consolidated. Consolidating into a single SIPP gives you one statement to read, one set of fees to compare, and the option to take drawdown or annuity income from a single provider. The fee saving alone, switching out of legacy schemes with 1% annual charges, can return 0.5-0.7% a year on the consolidated pot, which compounds into £20,000-40,000 over a 25-year retirement.
Measure the gap, then decide what to change
Once you have the £561,025 target and your Inner London pension picture, the calculation is mechanical: your total pension pot today, plus what your contributions and investment growth will add before your retirement age, against the target. For Inner London readers the lever is usually one of three: contribution level (move from 8% combined to 15% combined, the typical 7% gap), investment mix, or retirement age. The first lever usually delivers the most. Salary sacrifice via the employer is the Inner London-specific shortcut that delivers it.
How Delphina fits in
Delphina helps you work out your £561,025 number step by step. Self-service with the calculator on this page, or 1-1 financial coaching over video from £99 a session with a free 15 minute call to start. Your real numbers stay on screen in front of both of you, and the action you agree at the end of each session is specific to your situation this month, not a generic next step. For Inner London readers the most common first action is a salary sacrifice calculation against the £60,000 annual allowance. When a decision crosses into regulated territory, we will tell you, rather than pretending guidance covers everything.
Delphina provides guidance, not regulated financial advice. If you are considering a regulated recommendation, speak to an FCA-authorised adviser.
Frequently asked questions
How do I start planning for retirement?
Four steps, in order: work out your retirement number (what your lifestyle in London will cost, minus the State Pension, times 25); find all your pensions, including old workplace ones; measure the gap between where you are and where you need to be; then decide what to change: contributions, investments, or timeline. The calculator on this page handles step one.
When should I start retirement planning?
Earlier is exponentially better because investment growth compounds: money invested in your 30s can be worth several times more at retirement than the same amount invested in your 50s. But the second-best time is now. Even five years of focused planning before retirement materially changes your options.
What pensions might I have in the UK?
Usually three kinds: the State Pension (£12,548 per year from age 67, 2026/27, if you have 35 qualifying years of National Insurance); workplace pensions from every job since auto-enrolment began in 2012, which are easy to lose track of; and any personal pensions or SIPPs you've opened yourself. Most people's first win is simply finding them all.
How much should I pay into my pension?
A common rule of thumb: halve your age when you start, and contribute that percentage of salary (including employer contributions). Started at 30? Aim for 15%. At minimum, always contribute enough to get your full employer match; it's an instant 100% return. Beyond rules of thumb, work backwards from your actual retirement number.
What does pension planning in London look like for a 42-year-old on £90,000?
For a 42-year-old in London on £90,000, pension planning usually means three moves. Maximise employer matching via salary sacrifice on the workplace pension - the £60,000 annual allowance is rarely the binding constraint at this salary, so the lever is whether you and your employer are both contributing the right percentage. Find every old workplace pension from job changes (London job churn is higher than the UK average, so most people on this salary have left two or three schemes behind). And direct bonus income into the SIPP rather than take-home - a £10,000 bonus as take-home is around £6,000 net, but a £10,000 bonus into the SIPP via salary sacrifice is the full £10,000 in the pot. The London target of £561,025 reflects £34,989 annual living costs after the State Pension, so the gap matters more than the headline.
How much do I need to retire in London?
Take your expected annual spending in London, subtract the State Pension (£12,548 a year in 2026/27 at the full new rate, from State Pension age, which is at least 67 for anyone in their 40s today), then multiply the gap by 25. Using London's average living costs of £34,989 a year, the target sits around £561,025. The bigger number for most London readers is the property: average London house prices of £594,961 mean your total net worth requirement is materially higher than the rest of the UK. The action this month: pull your latest workplace pension statement and the latest three statements for any old workplace pensions from previous London jobs, and add the projected income from each at 67.
Where can I get pension advice in London?
For pension advice specifically regulated (defined benefit transfers, final salary scheme decisions, complex inheritance tax planning around pensions), use the FCA Financial Services Register to find an FCA-authorised adviser covering London. For understanding where you stand and what your options are, free guidance tools and 1-1 financial coaching over video cover that ground at a fraction of the cost of an ongoing advice fee. Most London advisers now work perfectly well over video, so you are not limited to Mayfair or the City - the shortlist is fee structure and independence, not postcode.
Is retirement planning different in London because of high house prices?
Yes, in two ways. First, the pension pot that supports a London retirement has to be larger because the equivalent property equity elsewhere is not available - a £600,000 London flat does not deliver the same retirement income as a £300,000 house elsewhere released at retirement. Second, the salary sacrifice lever matters more in London because higher salaries mean more scope to sacrifice, and the tapered annual allowance kicks in at £260,000 of adjusted income, which affects a meaningful slice of higher earners in London. The action this month: work out the gross contribution level needed to hit your £561,025 target, then check whether your employer offers salary sacrifice (most do, and most London employees do not use it to the full).
London context
What makes retirement planning in London different
Two numbers do most of the work in London. The first is the £594,961 average house price - 119% above the UK average - which means the equity in your London home has to do more of the retirement lifting, or the pension has to be larger to compensate. The second is salary: London salaries run materially above the UK average, which makes salary sacrifice the single most useful lever for many London earners, and also puts a meaningful number of London readers into tapered annual allowance territory above £260,000 of adjusted income. The £561,025 figure on this page is the national retirement number method applied to London's living costs, and it is the right starting point before you layer on the property and the tax levers.
Illustrative scenario
A 44-year-old on £95,000 in London: what pension planning actually looks like
Illustrative scenario, not a real case study. Worked example uses round figures to show the maths. A 44-year-old in London on £95,000 with a £180,000 workplace pension, a £40,000 SIPP from a previous job, and £25,000 in ISAs sits around £245,000 across pensions and ISAs. The London target is £561,025, so the gap is roughly £561,025 minus that £245,000. Two moves narrow it. Move one: increase workplace pension contributions from 8% combined to 15% combined via salary sacrifice - on £95,000 that adds £6,650 a year to the pot, which compounds to around £170,000 over 20 years at moderate growth. Move two: consolidate the two old workplace pots into a single SIPP to drop the platform and fund fees from 0.7-1.0% to 0.2-0.3% - the fee saving alone compounds into £20,000-40,000 over 20 years. After both moves, the gap narrows by around £190,000-210,000, and whatever is left is typically closed by directing bonus income into the SIPP, or by accepting that retirement is funded partly through downsizing later.
Professional bodies
Local professional bodies and registers for London readers
When the question stops being guidance and becomes a regulated decision, the right starting point is the FCA Financial Services Register, which lists every FCA-authorised adviser in the UK and the specific permissions they hold (a defined benefit pension transfer, for example, requires the pension transfer specialist qualification). The Chartered Institute for Securities and Investment (CISI) and the London Institute of Banking and Finance (LIBF) are the main UK professional bodies for financial planners and wealth managers working in London. The Personal Finance Society (PFS) holds the Chartered Financial Planner title, which is the highest UK qualification for financial planners. For any specific London firm, confirm the FCA authorisation on the Register before paying any fee - the Register is the only authoritative source.
- +FCA Financial Services Register - register.fca.org.uk
- +Personal Finance Society (PFS) - the Chartered Financial Planner title
- +Chartered Institute for Securities and Investment (CISI)
- +London Institute of Banking and Finance (LIBF)
- +The Investing and Saving Alliance (TISA) - the UK consumer savings and investment industry body
About Retirement Planning in London
London has an average house price of £594,961, which is 119% higher than the UK average of £271,000 (ONS UK House Price Index, May 2026).
Annual living costs in London are estimated at £34,989, 7% above the UK average of £32,700. The figure is based on ONS regional price levels for London and leaves out housing costs and council tax. Housing is counted separately through the local house price.
The local property market offers a range of options for retirees, from flats to family homes, at prices reflecting local demand and supply.
Data sources: ONS UK House Price Index (May 2026); ONS Relative regional consumer price levels of goods and services (2016); Pensions UK Retirement Living Standards (2026).
Your London Retirement Number
per year
£12,548
£12,548/yr at age 67
£22,441
Annual costs − State Pension
£561,025
25× gap (4% rule)
This does not include your primary residence
Based on 4% withdrawal rate · Assuming retirement at state pension age · London cost of living data · UK State Pension 2026/27
Ready for Your London Retirement?
Delphina gives you the tools and guidance to retire on your own terms, whether you want to DIY or get expert coaching.
Free to start · 1-1 coaching from £99 · Free 15-min call
Explore Other Locations in London
| Location | Region | Avg House Price | Living Costs | Avg retirement number @ 4% SWR | Avg total net worth required |
|---|---|---|---|---|---|
| Retirement planning in Barking and Dagenham | London | £360,679 | £34,989 | £561,025 | £921,704 |
| Retirement planning in Barnet | London | £588,293 | £34,989 | £561,025 | £1,149,318 |
| Retirement planning in Bexley | London | £410,445 | £34,989 | £561,025 | £971,470 |
| Retirement planning in Brent | London | £538,452 | £34,989 | £561,025 | £1,099,477 |
| Retirement planning in Bromley | London | £518,311 | £34,989 | £561,025 | £1,079,336 |
| Retirement planning in Camden | London | £772,336 | £34,989 | £561,025 | £1,333,361 |
| Retirement planning in Croydon | London | £388,821 | £34,989 | £561,025 | £949,846 |
| Retirement planning in Ealing | London | £566,930 | £34,989 | £561,025 | £1,127,955 |
| Retirement planning in Enfield | London | £464,044 | £34,989 | £561,025 | £1,025,069 |
| Retirement planning in Greenwich | London | £465,960 | £34,989 | £561,025 | £1,026,985 |
| Retirement planning in Hackney | London | £611,039 | £34,989 | £561,025 | £1,172,064 |
| Retirement planning in Hammersmith and Fulham | London | £730,674 | £34,989 | £561,025 | £1,291,699 |
| Retirement planning in Haringey | London | £646,557 | £34,989 | £561,025 | £1,207,582 |
| Retirement planning in Harrow | London | £530,414 | £34,989 | £561,025 | £1,091,439 |
| Retirement planning in Havering | London | £441,241 | £34,989 | £561,025 | £1,002,266 |
| Retirement planning in Hillingdon | London | £470,887 | £34,989 | £561,025 | £1,031,912 |
| Retirement planning in Hounslow | London | £509,325 | £34,989 | £561,025 | £1,070,350 |
| Retirement planning in Islington | London | £679,463 | £34,989 | £561,025 | £1,240,488 |
| Retirement planning in Kensington and Chelsea | London | £1,256,680 | £34,989 | £561,025 | £1,817,705 |
| Retirement planning in Kingston upon Thames | London | £572,759 | £34,989 | £561,025 | £1,133,784 |
| Retirement planning in Lambeth | London | £554,128 | £34,989 | £561,025 | £1,115,153 |
| Retirement planning in Lewisham | London | £489,602 | £34,989 | £561,025 | £1,050,627 |
| Retirement planning in Merton | London | £601,401 | £34,989 | £561,025 | £1,162,426 |
| Retirement planning in Newham | London | £384,258 | £34,989 | £561,025 | £945,283 |
| Retirement planning in Redbridge | London | £500,969 | £34,989 | £561,025 | £1,061,994 |
| Retirement planning in Richmond upon Thames | London | £785,897 | £34,989 | £561,025 | £1,346,922 |
| Retirement planning in Southwark | London | £564,359 | £34,989 | £561,025 | £1,125,384 |
| Retirement planning in Sutton | London | £450,859 | £34,989 | £561,025 | £1,011,884 |
| Retirement planning in Tower Hamlets | London | £458,392 | £34,989 | £561,025 | £1,019,417 |
| Retirement planning in Waltham Forest | London | £528,353 | £34,989 | £561,025 | £1,089,378 |
| Retirement planning in Wandsworth | London | £672,069 | £34,989 | £561,025 | £1,233,094 |
| Retirement planning in Westminster | London | £844,095 | £34,989 | £561,025 | £1,405,120 |