'We worked for 50 years and saved £350,000 - but our pension pot doesn't cover monthly bills'

A couple who worked for 50 years and saved £350,000 in investments for a "comfortable retirement" say their pension pot doesn't cover their monthly bills.

Sharon Taylor, 64, began seriously saving for her retirement 10 years ago by putting any money she got from pay rises into her workplace pension, and putting £150 a month into an investment account.

By the time she retired aged 63, in March 2025, Sharon, from Sheffield, and her husband Sean Taylor, 61, had £350,000 in investments, which they thought would be enough to last them until they get their state pension at 67.

They planned to withdraw £1,000 a month from an easy access savings account, but are now having to withdraw an extra £500 a month, due to the skyrocketing cost of living.

Sharon and Sean's combined monthly pension from private pensions is currently just £1,400, which does not even cover their £1,700 monthly bills.

The couple say they now wish they'd saved even more before retiring.

New data from Pensions UK shows that to live comfortably, a couple needs £62,700 a year, and that to retire comfortably at 60, you need £685,950.

Sharon, who worked in customer services before her retirement, said: "I never expected to have to be frugal in my retirement.

"Our joint monthly pension doesn't actually cover our bills.

"The cost of everything has gone up; no amount of planning could predict how much the cost of living has gone up.

"I don't want to have to scrimp and save; we've worked our whole lives to enjoy ourselves.

"We thought we'd saved enough, but we haven't."

Ever since she first started working, at age 18, Sharon has always contributed around 5% of her pay to her workplace pension.

Around 10 years ago, Sharon began planning for her retirement, and every time she got a pay rise (usually between 1% and 4%), she would put the extra money into her pension pot.

"I always knew I wanted to retire early," said Sharon, who will be able to access her state pension at 67.

Then when Sean's parents died, four years ago, the couple put all of his inheritance into a stocks & shares ISA and bought some shares in high street banks, topping up the investments with £150 a month from their wages where possible.

When Sharon officially retired, in March 2025, she consolidated all of her pensions, bar two, into a self-investment pension plan.

In total, when she retired, the couple had a net worth of £750,000, including two properties, and £350,000 in investments.

"We thought this would be ample to retire on," she said.

They put £5,000 of their investments into an easy access savings pot for repairs, and £10,000 into a pot for holidays, which they hoped would last them two years.

However, already this year they have had to spend £3,000 on a new central heating system, and £2,000 on a new front door, meaning their entire budget has already gone.

When Sharon retired, she and Sean, who retired five years earlier at 55, due to his health, had big plans to make the most of their retirement by travelling.

"One holiday and the budget is gone," she said.

Sharon gets just £450 a month from the two pension pots that she has access to, whilst Sean gets £950 a month from his workplace pension.

The couple also get £350 a month from renting out a property to a family member, but as their monthly utility bills and car payments are £1,700, they have very little left over to last them the month.

Sharon had planned to withdraw £1,000 a month from an easy access savings account to cover the cost of food and other expenses, but has now had to withdraw an extra £500 a month, due to rising costs.

"I've worked for nearly 50 years; I never expected not to have enough," she said.

Rather than enjoying their retirement, Sharon and Sean have had to be budget conscious and go out for coffee and cake or breakfast, rather than dinner.

"We're not going to be able to do any more holidays this year, or do other things we'd like to," she said.

Sharon has considered going back to work part-time to help her make a bit of extra cash, and last year was approached by someone from an online travel agent.

However, she ended up paying more in monthly fees than she was making from the company, so she decided to give this up.

Looking back, Sharon wishes she had put more in her savings before retiring.

"I wish I'd put more into my pensions, so I didn't have to stretch out what I have in the bank until the end of the month.

"Before you retire, really sit and think about whether you can put more into your savings.

"Even if it's just £5 or £10 a month. Don't make the same mistakes we made, thinking you'll have enough."