How to Prepare for Retirement
From ten years away to one left Retirement planning is one of the most important steps in securing your financial future – but it’s not a one-size-fits-all journey.
Whether you’re ten years out or just twelve months away, having a clear roadmap can make all the difference. This guide breaks down the key stages of preparation and how to stay on track at each point.
In the UK, a moderate retirement lifestyle now requires around £31,700 per year, according to the Pensions and Lifetime Savings Association (PLSA). This offers a helpful benchmark as you start thinking about your income needs and the shape of your later years.
It’s also worth remembering: retirement today isn’t always a hard stop. Many people opt for a phased or flexible approach – easing out of full-time work while enjoying more time with family, travel, or passion projects.
10 Years to Go: Build and Boost
With a decade still ahead of you, this is the time to strengthen your savings habits and fine-tune your growth strategy.
Increase contributions to your pension and ISAs – especially after any salary rises
Tackle high-interest debt, freeing up income for future use
Check your State Pension forecast and plug any National Insurance gaps
Begin to visualise your retirement – where you’ll live, how you’ll spend your time, and what kind of lifestyle you want to support
5 Years to Go: Fine Tune the Plan
With five years to go, the focus turns to structure and protection.
Review and consolidate pension pots for simpler management and potentially lower charges
De-risk investments gradually to protect gains
Maximise pension contributions, especially for higher-rate taxpayers
Start planning your income strategy – whether through drawdown, annuities, or a mix
Eliminate remaining debts and begin forecasting costs like travel, healthcare, and home improvements
1 Year to Go: Final Prep
The last 12 months are all about readiness and confidence.
Set your retirement date and double-check all contributions
Structure your withdrawals tax-efficiently – starting with your tax-free lump sum, if applicable
Ensure you have cash on hand for the short term and any unforeseen expenses
Test your retirement budget – does it feel comfortable and realistic?
Finalise any estate or legacy planning steps, including wills or power of attorney if needed
Why Work with a Financial Planner?
Retirement isn’t just about money. It’s about peace of mind, security, and freedom to enjoy what matters most.
A financial planner can help you navigate the key decisions, avoid costly mistakes, and make the most of every opportunity – whether you’re just starting or fine-tuning your final steps.
No matter where you are in your journey, it’s never too early – or too late – to get your plan working for you.