I want to check I’m on track for retirement

Looking towards your retirement can be a nice daytime distraction but it can be a daunting thought. Planning ahead and getting ready will help ensure you’re on track for the financial future you want.


What can you do to prepare and get ready?

1. Consider how much you might need

The Government provide a payment to all those eligible when you reach a certain age, known as the State Pension.

The age for when you can start to receive your State Pension is rising. You’ll need to consider how much of the State Pension you might get and decide if what you’ll receive will be enough to live the life you’d like in retirement.

You should check what age you can start to receive your State Pension and check your eligibility for the full amount.

The current State Pension 2021/22

£179.60 per week

That's around

£778.30 per month

or

£9,339.20 per year

Think about your other income sources

It’s also important in the run-up to your retirement that you get estimates for all of your potential sources of income, including any other pensions you might have.

You can use our Retirement Income Planner to see how taking money out of your pot can impact how long your money might last.

You might also have a mixture of other sources of income such as:

  •  ISA’s and other savings accounts 
  • Properties that you might rent out or sell
  • Other investment products 
  • Income you receive if you're still working
     
Where that money might go on an annual basis
Retirement planning chart

Source: Office for National Statistics UK national average expenditure of two adult retired households mainly dependent on State Pension UK financial year ending 2018.

*Based on average £1,898 Band D council tax for England in 2021/22, source GOV.

2. Look at a retirement checklist

A simple retirement check list can help you check your planning is on track

Modern retirement takes many forms, with more of us continuing to work later on in life or on a part-time basis so it’s worthwhile thinking about your future plans. Maybe you’d like to – or perhaps it’s a necessity to ensure you can live how you’d like when you retire fully.

It’s important to consider if your potential retirement income sources or other investments you might have, will be enough to fund your current lifestyle.

You’ll spend your time in different ways once you’ve retired, and your day-to-day budget and cash needs will likely change, with some costs going up and some coming down.

Because you’ll probably spend more time at home, things like your energy bills are likely to go up. But if you were commuting to work, these costs are likely to come down. You’ll also need to factor in any money that you owe on bills, debts or your mortgage, and ensure you have enough to cover any new hobbies or significant holidays you’d like to take - along with insurance.

Whether you own your home or are renting, you’ll need to consider where you want to live when you retire, and the role your property could play in your future.

Think about whether you plan on moving for a change of lifestyle – or if you may need to downsize or release some equity from your home. Or if you want to make improvements to the property you already have.  

You might also want to make provisions for an elderly parent living with you, or for your own long-term care.

Depending on your age and where you live, there could be government benefits on top of any State Pension you may get, plus savings on things like healthcare and travel that could really boost your future income.

You should check what you could be entitled to in retirement.

You might need to consider whether you’ll need to make provisions for a partner or dependants both when you retire and after you’ve gone.

You can read about the different ways you can pass your pension on.

If you find that your potential income sources will not meet your future requirements or there is likely to be a shortfall, topping up your pension in the final years before you retire could make a difference to the amount of money you’ll have to retire with.

You should consider the benefits of topping up and why it could pay to top-up your company pension.

The final stage is to understand what your retirement options are.

You should shop around to compare options from different providers, to make sure what you decide is right for you. You can ask for quotes from your current provider for the options you’re interested in and use this as a baseline for comparison.  

3. Consider getting financial advice or independent guidance

For further information around advice and the types of advice you can receive during your pension planning, please see our importance of advice in pension planning section.

Read our case study examples

We’ve pulled together some example case studies to help give you an idea of what different levels of retirement income might look like.

These are just examples and aren’t a recommendation.

Over 50? Not sure how much you’ll get from your pension?

Not sure if you should be doing something with your pension? Not sure how much you actually have? Not sure if you should combine all your pots into one pension?

The ten years running up to retirement is a critical time in terms of planning for a good retirement.

An adviser can review all of your pensions, give you a clear picture of what you have and recommend the right actions you should take.

If you don't already have an adviser, we can help. We offer a restricted advice service.

Find out more and arrange a chat

Keep track of your pension online

If you're an existing customer, your online service allows you to manage your pension whenever you like. Registering also means going paperless. So as well as being able to view important documents like your annual statement, change your personal details and contact us securely, you'll be helping the environment.

Online Service

Need more help? 

Money Advice Service

Find an independent financial adviser in your area to help you in your future pension planning.

Visit
www.unbiased.co.uk
and enter your postcode.

 

Pension wise logo

We recommend you use Pension Wise, a free impartial guidance service from the government to help you understand your options at retirement.

Visit pensionwise.gov.uk or call 0300 330 1001 to book a phone or face-to-face appointment.

Money Advice Service

Visit hmrc.gov.uk to find out more information on tax rules and legislation which may affect you and your pension plans.