Retirement Planning

Saving for retirement and drawing an income in retirement are different problems. The first is largely about contributions and time. The second is about sequencing, tax, longevity and how much certainty you want — and the decisions are harder to reverse.

The questions that actually come up

Income or certainty? Annuities have become more relevant again as interest rates have risen, and they guarantee an income for life. They are also inflexible: once bought, you cannot switch provider or unwind the decision. Drawdown keeps flexibility but leaves you carrying the investment risk. Many people are better served by a combination than by choosing one outright.

What order should I draw from? The sequence in which you take money from pensions, ISAs and other savings affects the tax you pay and how long the money lasts.

When can I actually stop? Usually the real question underneath the others. It deserves a considered answer rather than an optimistic one.

Changes worth knowing about

From April 2027 the value of unused pension funds is due to be included in inheritance tax calculations, which may affect how people choose to use their savings in retirement. The normal minimum pension age also rises to 57 in April 2028. Both are announced well in advance, which means there is time to plan around them rather than react to them.

Talk it through

The first appointment is free and without obligation, at either our Hampshire or Surrey office.

Occupational pension schemes are regulated by The Pensions Regulator. The value of your investment, and the income from it, can go down as well as up and you may not get back the full amount you invested.

The Financial Conduct Authority does not regulate tax advice. Tax treatment varies according to individual circumstances and is subject to change.