If you want to retire at 50, this is how much you'll need

Early retirement is no easy feat, as savers will need to build a bigger pension pot and also watch out for Ts&Cs that might prevent them from accessing their funds before the normal minimum pension age, which is 55. But, if you're able to save into the right accounts, retiring at 50 with enough money to enjoy a luxurious life will cost a tender £800,000 now, or £1million adjusted for inflation over time.

This is according to Alltrust calculations for Money Week using the Pensions and Lifetime Savings Associations latest report on retirement standards. The experts even delved into how much people will need to save depending on their current age if they want to reach the £1million threshold by 50.

If you start your pension fund at 25, you'd need to invest £516, ideally into tax-free accounts like a stocks and shares ISA. As well as putting £1,326 into a pension.

This makes for a total of £1,843 put away every month for retirement alone for the next 25 years. But the earlier you start, the more affordable it is.

If you start saving for retirement at 35, giving you just 15 years before your early retirement deadline, you'd need to invest £1,150 into your tax-free accounts and another £2,960 into a pension. Making for a total of £4,100 spent on investments and pensions.

But not everyone wants all of life's little luxuries in an early retirement. If you're okay with going for a moderate lifestyle, you'd need to save £530,000 by the age of 50.

You'll need to put away £370 into investments and £960 into a pension each month from the age of 25 to do this, or a total of £2,965 per month from the age of 35.

James Floyd, managing director at Alltrust, said: "These calculations expose the harsh mathematics of early retirement.

"While achievable for high earners with disciplined savings habits, retiring at 50 with PLSA comfort levels requires sacrifices most people would find difficult to sustain over 25 years."

These calculations are all based on investment returns around 4% or more, which can't be guaranteed as with any investment there is capital at risk.

Currently, the cost of a comfortable retirement according to the PLSA, with a budget for some high-end items and luxury holidays, is around £43,900 per single person per year. That's an £800 per year increase since 2024.

A moderate retirement costs around £31,700 per year while a minimum retirement will set you back around £13,400 per year per single person.