London workers may have the biggest retirement pot potential – but soaring living costs could cancel out the benefit.

New research from Personio shows that the capital accounts for 66% of the UK’s total retirement readiness wealth, thanks to high-paying sectors like Finance & Banking and Legal. But experts warn that London’s advantage may not translate into a more comfortable retirement due to the ongoing cost-of-living crisis.

On paper, the average London worker could retire with £212,700, compared to £185,000–£205,000 in other major cities. That’s a gap of £20,000–£30,000 per person – enough for:

3 years of mortgage payments
10 luxury holidays
A new car every five years until retirement
But here’s the catch: London’s living costs can eat that up fast.

Rent: At £2,000+ per month, one year of rent could wipe out the entire £30k advantage.
Utilities: Energy bills in London average £2,000 per year – over a 20-year retirement, that’s £40,000 gone.
Council tax: Around £1,700 annually, adding another £34,000 over 20 years.
Commuting: Hundreds more per month during working years, reducing savings potential.
So, while London workers may retire with a bigger pot, they also face higher expenses throughout their careers – and into retirement.

“London’s financial sector gives workers a huge edge on paper, but the reality is more complex. High living costs can erode that advantage, meaning regional workers may end up just as comfortable,” says Kurt Bannister, Head of Talent Acquisition at Personio.