Guide to a successful retirement

Live comfortably, keep your independence, and enjoy what matters most

Welcome to our Guide to Planning a Successful Retirement.

As life expectancy rises, retirement periods are lengthening, making careful and proactive planning vital.
For many, retiring in 2025 could mean funding 25 to 30 years or more without a regular income. Such a
prolonged period presents unique challenges, including inflation, market fluctuations, healthcare costs, and
changing lifestyle needs, all of which require a well-structured strategy. Building a diversified portfolio, stress testing withdrawal rates, and aligning investments with your risk tolerance can help ensure your nest egg supports you throughout every stage of retirement.

Most importantly, a ‘successful’ retirement isn’t about luxury; it’s about confidence and choice. True
wealth in retirement is the ability to live comfortably, stay independent, and enjoy the experiences that matter most to you, whether that’s remaining in your home, travelling occasionally, supporting family, or pursuing hobbies. With a plan that balances growth, income, and protection, you can establish the financial stability to live the lifestyle you want, on your own terms.

Taking personal responsibility

Retirees today can no longer depend solely on the State Pension. Although it remains an essential foundation, it provides only a modest income compared to everyday living costs. In the UK, the current full State Pension pays £11,973 per year, which is significantly less than most people require for daily expenses and leisure activities.

Building sufficient private savings is therefore crucial. The earlier you begin planning, the more you can
gain from the power of compounding and tax relief on pension contributions. Taking personal responsibility for your retirement funding is essential to establishing financial stability in later life.

Understanding what you need

A key question for many is how much money will be enough. Calculating this involves comparing your expected income with your desired expenditure.

Start by estimating your living costs in retirement, including both essential and lifestyle expenses. Then, review what you have already saved and consider how much longer you can afford to contribute.

Since nobody knows how long they will live or how inflation might influence future costs, scenario-based
planning is beneficial. Modelling best, moderate, and worst-case scenarios allows you to assess the sustainability of your finances. Incorporating flexibility, such as part-time work or phased retirement, can help extend your income.

Maximising pension potential

Workplace pensions continue to be one of the most effective ways to save for retirement. Employers are
obliged to provide access to a pension scheme, and many match employee contributions, effectively giving
additional savings at no extra cost.

Those who are self-employed or not enrolled in a workplace pension can contribute to a personal pension, such as a Self-Invested Personal Pension (SIPP) or a stakeholder plan.

Pensions are among the most tax efficient investment options available. Depending on an individual’s tax
situation, up to 45% income tax relief can be claimed on contributions, and pension funds grow tax-free until withdrawal. The annual contribution limit is currently £60,000 for the 2025/26 tax year, although this may be reduced for high earners. After the end of the Lifetime Allowance in 2024, larger pension savings can now be accumulated without incurring additional tax charges, subject to the new lump sum limit of £268,275.

Get in touch

For more detailed information, refer to our guide or contact our financial planners to find out how we can help you build and structure your assets to ensure you are prepared for retirement.  

THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE. THE VALUE OF YOUR INVESTMENTS CAN GO DOWN AS WELL AS UP, AND YOU MAY GET BACK LESS THAN YOU INVESTED. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TAX PLANNING IS NOT
REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE). THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.

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