This is a very commonly asked question and the easy answer is ‘as much as you can afford’. The basic state pension provides £4,716 per annum for a single person or a joint income of £7,542, if you are married. These figures assume that you qualify for the full state pension and that it is still available to you when you reach age 65, something that is not guaranteed in this day and age.
Any other provision is entirely down to you, and how much you save. To give you an idea of what you can expect from a private pension the table below gives guideline amounts depending on how much, and for how long you save. Also remember that your retirement income will be taxed in the same way as you salary is.
Certain assumptions have been used to provide these figures such as
How to use the table
Work out how many years you have until you reach age 65 and find the closest match from the row at the top. Then select the monthly amount that you wish to contribute from the left hand column and follow this across until it meets the age column you selected. You will see that there are thee rows of numbers for your selection. These are
The Pension figures assume that you use your entire pension fund to convert to an income. You may withdraw up to 25% of your final fund value as tax-free cash, although this will reduce the amount of pension you receive. If you withdraw the full 25% then your annual pension will decrease by 25%.
You may also view the document here.