By Adam Caplan, Director

Retirement is something most of us look forward to, but as the years go by, we often start to wonder if we’ve prepared enough.

Even where you have spent years building up savings and pensions, there are often a few areas that do not get the same level of attention.

These can impact how comfortable retirement feels and whether your retirement plans hold up over time.

Here are five areas worth reviewing before you leave the workforce.

1. Have you thought about what retirement will actually cost?

A lot of people focus on building a target amount, but few stop to look at what they are likely to spend once they stop working.

The regular costs are usually the easiest to identify. Household bills, food, transport, holidays, hobbies and general day-to-day living all need to be factored in.

Where plans often fall short is in the less predictable costs.

For example:

• What would happen if you needed care later in life?
• Would your income create an unexpected tax liability?
• Could you cover urgent costs such as home repairs, flooding or replacing essential items?

These things may never happen, but they are always worth allowing for within your budget.

Inflation also needs to be considered, because the amount that feels comfortable today may not go as far in ten or fifteen years.

2. Does your investment strategy still suit where you are now?

The approach that worked while you were building wealth may not be the right one as you approach retirement.

Earlier in life, it often makes sense to take a little more risk in pursuit of securing as much money as possible.

Closer to retirement, the focus usually shifts towards preserving what you have built and generating a reliable income.

This does not necessarily mean you need to move everything into low-risk holdings overnight, but it does mean reviewing whether your current portfolio still reflects your priorities.

Ask yourself:

• Am I taking more risk than I need to?
• Is my portfolio properly spread across different assets?
• Would a fall in value now materially affect my plans?
• Are there alternative investment opportunities I could benefit from?

For many clients, retirement is the point at which a more measured balance between growth and stability becomes appropriate.

3. Do you fully understand your pension options?

Pensions often account for the majority of retirement income and yet many people are still not entirely clear about what they qualify for or when they can access their pot.

The State Pension is not always enough on its own to support your lifestyle indefinitely.

You should have a clear understanding of:

• When you are eligible to claim
• How much you are likely to receive
• Whether your National Insurance record is complete to qualify for the full amount

If you have a private and workplace pension, it is worth checking whether you have older pension pots from previous employers that may have been forgotten, as well as understanding the options available under your current scheme.

Some plans offer drawdown flexibility, lump-sum access or benefits for family members after death.

4. Have you considered the tax position when drawing income?

One of the most common issues we see is people focusing on how much they can take, rather than how best to take it.

The way you draw from pensions and savings can have a direct effect on the tax you pay.

Taking too much in one tax year may push part of your income into a higher tax band. In some cases, this can be avoided simply by spreading withdrawals more carefully.

It is worth reviewing:

• What can be taken tax-free
• What will be taxed as income
• Whether ISA funds could be used alongside pension withdrawals
• How withdrawals may affect allowances and thresholds

The aim is to make your income last while keeping unnecessary tax to a minimum.

5. Have you reviewed what you plan to leave behind?

For many clients, retirement planning is also about making sure their family is looked after once they are gone.

If your intention has been to leave unused pension funds to the next generation, this is an area that now needs careful review.

From 6 April 2027, most unused pension funds and death benefits are expected to fall within the scope of Inheritance Tax.

This means plans that previously worked well from an estate planning perspective may no longer produce the same outcome.

It is worth revisiting:

• Who you would like to benefit
• How Inheritance Tax may apply
• Whether your pension is still the most suitable vehicle for passing on wealth
• If you should take more from your pension now and explore gifting options instead

A review now gives you time to make any necessary changes before the new rules come into effect.

Is it time to revisit your plans? 

As retirement draws closer, it is easy to assume that everything is on track simply because you have been saving consistently.

However, with recent changes in mind, taking the time to review these areas now can help ensure your plans still reflect your circumstances, the latest tax rules and what you want the future to look like.

If it has been a while since you last reviewed your plans, get in touch with our team, who can help you review them and confirm they are still fit for purpose.