First, some numbers…
For a comfortable retirement, you would typically need an annual income of around £60,600 as a couple and £43,900 as an individual¹. Other research suggests a total pension pot of £270,000 to £400,000 each for couples, or £540,000 to £800,000 for an individual is needed, alongside the full State Pension².
Data shows that average pension pots tend to peak in the years just before and around typical retirement age and then decline as people begin drawing them down. For those aged 65 to 74, median pension wealth remains relatively high at £145,9002. Over the age of 75, it often starts to fall as savings are used for living expenses, healthcare and lifestyle. The average pension wealth for over 75s is £59,7002.
These patterns highlight an important truth – in later years, pensions are just one part of a broader financial picture that includes investments, cash savings, property and, for many, the State Pension.
From income planning to peace of mind
At this stage, financial planning is less about accumulation and more about ensuring your wealth is structured to deliver sustainable income and flexibility. Longevity means your money may need to support you for decades. Having a strategy in place for income, buffers and contingencies helps remove uncertainty.
For many, that includes reviewing how income is drawn from investments, ensuring tax efficiency and considering how best to balance spending now with preserving legacy later.
Managing tax and legacy
Inheritance Tax planning becomes more prominent in later years. With thresholds frozen in recent years, estates that once sat below the IHT threshold may now be exposed. Early planning – using annual gifting allowances, trusts where appropriate and keeping beneficiary nominations up to date – can reduce the complexity and tax burden later on.
Legacy planning isn’t only about minimising tax. It’s about clarity – making sure your intentions for family, causes you care about or cherished plans are clearly set out and legally sound.
Engaging with the people you care about
Planning your finances can be deeply personal and bringing family into the conversation can strengthen shared understanding. Discussing how assets are held, what income is expected and how you hope your estate will be shared supports both emotional and financial clarity.
Staying invested, thoughtfully
Even in later life, how your assets are invested matters. Inflation, market cycles and longevity mean that keeping some growth exposure – balanced with defensive assets – can help ensure your savings last. Avoiding impulsive moves in response to short-term volatility and reviewing your strategy with a financial professional, helps maintain stability and confidence.
A reassuring perspective
Retirement should be about enjoyment as much as security. A thoughtful financial plan which is tailored to your needs, circumstances and priorities gives you the freedom to live well and the reassurance that your wealth will support you for the long haul.
Whether you’re supporting family, planning a legacy or rediscovering passions long postponed, a clear financial path lets you live with purpose and peace of mind.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.