UK retirement planning specialists
Saving into a pension is the easy half. Turning it into an income that lasts as long as you do — without paying more tax than you need to — is where planning earns its keep.
Most people approach retirement knowing roughly what their pension is worth and very little about what it will pay them. Those are different questions, and only the second one matters.
Retirement planning turns a pot of money into a schedule of income: how much you can sustainably draw, in what order to use your pension, ISAs and savings, and what happens if markets fall early or you live longer than expected.
Our panel includes UK retirement planning specialists who model this properly rather than relying on rules of thumb.
The questions a plan should answer
- What can I sustainably draw each year? Modelled against inflation and realistic returns, not a flat percentage.
- Can I afford to stop earlier? Usually the question people most want answered, and the one guesswork handles worst.
- In what order should I draw? The sequence in which you use tax-free cash, taxable pension income, ISAs and general savings can change your lifetime tax bill considerably.
- What if markets fall in year one? Poor returns early in drawdown do disproportionate damage — a risk that can be planned around.
Annuity, drawdown, or both
- Annuity. Exchanges your pot for guaranteed income for life. Certainty, no investment risk, but usually inflexible and nothing left for your family unless you buy that protection.
- Drawdown. Keeps the pot invested and lets you vary income. Flexible, potentially better for inheritance, but you carry the investment and longevity risk.
- A combination. Frequently the sensible answer: annuitise enough to cover essential spending, keep the rest invested for everything else.
- Rates and options vary widely between providers, and the difference between the best and worst annuity quote is routinely significant.
Tax, and passing it on
- 25% of your pension is normally available tax-free; the rest is taxed as income. Taking too much in one year can push you into a higher band unnecessarily.
- Withdrawing flexibly can trigger the money purchase annual allowance, sharply reducing what you may contribute afterwards. Worth knowing before you act, not after.
- Pensions sit outside your estate for inheritance tax in most circumstances, which often makes them the last asset to spend rather than the first.
- Death benefit nominations should be kept current. It is the most commonly neglected piece of paperwork in retirement planning.
Questions we get asked
Talk it through — free, and with no obligation
A short conversation with an FCA-regulated adviser will tell you where you stand. There is no cost and no pressure to proceed.