Planning ahead for retirement is essential for making sure you’ll have enough money to live comfortably once you finish your career. Ideally, you should start thinking ahead several years before you retire while also enjoying your current lifestyle.

Retirement is a major life change which takes many by surprise, finding that it’s a tricky transition to make on a practical and emotional level. This is why the five to 10 years pre-retirement is so important, as it’s time for you to get your plans in order and prepare for the next stage of your life.

Pre-retirement

When can I comfortably retire?

Currently, the state pension age is at 66, but you can retire earlier than this if you can afford to do so.

Workplace and private pensions can be drawn from the age of 55 (increasing to 57 from April 2028), and 25% of your pension can also be taken out as a tax-free lump sum. Some individuals choose to pay off any outstanding mortgage commitments with their lump sum in order to reduce liabilities.

To best determine the age that you can comfortably retire, we will first take a look at all of your outgoings, as well as how much you currently have in your pension pot. It will often come down to your level of expenditure. Ultimately, you need to ask yourself ‘can my pension pay keep me going and help me live at the level I need before I am able to start drawing my state pension?’

Typically, the more money that you have paid into your pension, and the lower your outgoings, the earlier you will likely be able to retire comfortably.

Our experienced advisers will sit down with you and go through all of your financial commitments in full, before making any recommendations.

What is my state pension going to be?

Your state pension entitlement will depend on your national insurance record – if you have made at least 35 years of national insurance contributions, then you will be entitled to the full amount, which currently stands at £203.85 per week. If you are concerned you haven’t paid the full 35 years, then you can find out more here.

Your state pension is typically paid every four weeks in arrears into a bank account of your choice, starting from within five weeks of you turning 66 years of age. You will receive your state pension regardless of whether you have other sources of income (such as a workplace or personal pension), and all of this applies in the same way to both men and women.

It’s important to note that when the time comes to claim your state pension, it won’t be done automatically – you’ll need to apply via the government website.

Couple with champagne walking through garden

Here’s what we can help you with pre-retirement

  • Reviewing finances to establish if your desired retirement age is comfortably achievable
  • Guidance on inherited money
  • Guidance on selling a business and investing proceeds into retirement
  • Early retirement due to ill health
  • Wealth planning and intergenerational tax planning
  • Advice on your outstanding mortgage
  • Fixed term guaranteed annuity
  • Taxation planning

We’d be happy to help guide you through your pre-retirement phase, with our initial consultations completely free of charge.

Contact us about pre-retirement