How to plan for retirement

Why do I need to plan for retirement?

Retirement planning has evolved rapidly over the last couple of decades. Fewer people enjoy the guaranteed income that comes with a final salary pension, and you now have to wait for longer to qualify for the state pension.

In short, having plenty of money in retirement is on your shoulders – so the more prepared you are, the better your retirement will be.

The good news is that there's lots of help that you can get to understand what's best for you:

• Comprehensive free Which? guides on pensions and retirement
• For Which? members (depending on your membership), one-to-one guidance from the Which? Money Helpline
• Free guidance services such as Pension Wise
• Professional financial advice

How do I plan for retirement at different ages?

The earlier you start planning for retirement, the more likely you are to build up adequate savings for the lifestyle you want when you stop working. 

Real life, however, will often mean that this is easier said than done, as other financial commitments get in the way. 

Here are some of the things you should be thinking about at certain ages.

Retirement planning checklist

Here's how to put yourself in the best position.

1. Get an idea how much your retirement income is likely to be

Your pension fund should be built up over your working life, but you may not have an idea how much you are on track to end up with.

Pension statements will indicate the annual retirement income likely to be generated by your final salary pension or the current size of your defined contribution plan.

Use our pension calculator to get an estimate of how much you will end up with.

2. Check your state pension

The rising state pension age (SPA) means that people are having to wait longer to get this government-provided income. However, once you do receive it the state pension can provide a major boost to your finances.

The full state pension (for those who reach state pension age on or after 6 April 2016) is worth £221.20 a week in 2024-25 (£11,502 a year), though the amount you receive depends on your National Insurance record. 

A state pension forecast will help you to gauge how much you're on course to get from the government.

Find out more in our guide to how much state pension will I get?

3. Track your expenditure before you retire

Having a clear idea of what you spend your money on now will help you to plan for the longer-term.

Bear in mind you're likely to have less money to live on than when you were working, but you'll likely be spending less in certain areas (commuting to work, for example).

Find out more in our guide to how much will I need to retire?

4. Think about when to start drawing your pension

You don't have to stop working to take your pension. You can access your money once you reach the age of 55 (rising to 57 in 2028).

The earlier you start taking your pension, however, the earlier you might find that the pot starts to deplete. 

There is now much greater flexibility in the ways that you can access your retirement savings and when you can start withdrawing the money.

Find out more in our guide to what can I do with my pension pot?

5. Get professional help and advice

You're not on your own when it comes to making financial decisions in relation to retirement.

If you have some complex decisions to make, it may be worth talking through the options with a financial adviser.

If you're over 50, you can use Pension Wise - the free and impartial guidance service backed by the government.

Find out more in our guide to how to get retirement and pension advice.