Approaching Retirement? Here’s What You Need to Know
Retirement is an exciting milestone—but it can also feel overwhelming. Whether you’re two years away or five, planning ahead is the key to enjoying the lifestyle you’ve worked hard for. In this guide, we’ll cover essential retirement planning tips, practical examples, and why speaking to an independent financial adviser could make all the difference.
-
Understand Your Pension Position
Do you know exactly what pensions you have? Many people lose track of old workplace schemes. Use the https://www.gov.uk/find-pension-contact-details to locate any forgotten pots.
Example: If you’ve had five employers over 20 years, you might have five separate pensions. Consolidating them could simplify your planning and reduce fees.
-
Check When You Can Access Your Pension
Most personal pensions are available from age 55 (rising to 57 in 2028), but workplace schemes vary.
Tip: Accessing your pension early means it needs to last longer—so think carefully before drawing funds.
-
Review Your Pension Value and State Pension Forecast
Log in to your pension provider’s portal and check your current pot value. Then use the https://www.gov.uk/check-state-pension to see what you’ll receive.
Example: If your forecast shows £10,600 per year from the State Pension, you’ll know how much extra income you need from savings and investments.
-
Create a Realistic Retirement Budget
Your spending will change. Work-related costs disappear, but leisure and travel often increase.
Tip: Write down your expected monthly expenses—housing, food, hobbies, holidays—and compare them to your projected income. This simple exercise can highlight gaps early.
-
Explore Pension Withdrawal Options
You can take a tax-free lump sum, buy an annuity for guaranteed income, or use flexible drawdown.
Example: If you want steady income for life, an annuity might suit you. If you prefer flexibility, drawdown could be better—but it carries investment risk.
-
Review Your Investment Strategy
As retirement nears, you may want to reduce risk.
Tip: Consider moving some funds into lower-risk investments to protect gains, but keep enough growth potential to combat inflation.
-
Prepare Emotionally for Retirement
Retirement isn’t just financial—it’s a lifestyle shift.
Example: Plan how you’ll spend your time—volunteering, hobbies, or part-time work. This helps avoid the “now what?” feeling many new retirees experience.
Why Speak to an Independent Financial Adviser?
Pensions are complex, and decisions can be irreversible. An adviser can help you:
- Maximise tax efficiency
- Choose the best withdrawal strategy
- Avoid costly mistakes
Ready to take control of your retirement?
Contact us today for tailored advice and start planning the future you deserve.
