If there’s one thing that the majority of the working population can agree on, it’s that we can’t wait for retirement.

We spend a good portion of our lives going to work with the end goal of building stability and a future that feels worth the effort for ourselves and our families.

However, if you are looking for a comfortable retirement, it will take thorough planning, tough decisions and sometimes a little sacrifice.

When should you start retirement planning?

Whether you are just fresh into the job market or have been working for the last 30 years, it is never too early to start planning for retirement.

Obviously, the longer you give yourself to plan, the more opportunities you will have and the greater the chance of having enough money saved or invested to make your retirement as comfortable as you have always dreamed it would be.

With life expectancy increasing, retirement is no longer seen as a 15 or 20-year phase of life.

It’s entirely possible your retirement could span three decades or more, which means your savings need to work harder and last longer.

Budgeting for retirement

If you are a long way off from retirement, budgeting for it may feel a little premature.

Between now and the day you leave the workforce, the cost of living, pension rules, tax rates and even your own priorities will likely have changed.

That means the figures you have in mind today might look very different by the time you actually retire.

That said, it is still important to put together a rough retirement budget to give you an idea of how much you will need to save.

Your budget should cover all your incomings and outgoings, factoring in long-term essentials such as housing, utilities and food, as well as discretionary spending like holidays, hobbies and family support.

It can also be helpful to consider what additional costs you may have as a retiree, such as care costs if your health declines.

Assessing how much income you will receive as a retiree

Estimating how much income you’ll receive in retirement starts with understanding all the sources that will contribute to it.

This includes your State Pension entitlement, any workplace or private pensions and the value of savings or investments you plan to draw from.

It’s also worth considering whether you’ll have income from property, part-time work, family networks or other assets.

Looking at these together gives you a realistic picture of what you can expect each month and where you may have to cut back on expenses.

How can you boost potential retirement income?

If you do not think that your estimated retirement income will be enough to accommodate your lifestyle, you should look for opportunities to boost your income.

If you are enrolled in a company pension scheme, check how much money you are contributing to this each month.

Eight per cent of your salary is usually the minimum contribution to a workplace pension. At least 3 per cent of this must come from your employer, while the remaining 5 per cent comes from your contributions, including tax relief.

However, some employers will contribute more, in which case, you can contribute less if you choose, but you are not obliged to.

Check whether you are on track for the maximum State Pension

To qualify for the new State Pension, you must be:

• A man born on or after 6 April 1951.
• A woman born on or after 6 April 1953.

If you are eligible to receive the full rate of the new State Pension, you will receive £241.30 per week.

To receive the full amount, you will usually need 35 qualifying years of National Insurance Contributions (NICs).

If you have ever taken time away from work, for instance, for maternity or paternity leave, you may have gaps in your NI record.

The good news is that you can often make voluntary contributions to fill those missing years and boost your State Pension entitlement.

The amount you receive from your State Pension can change year on year, so remember to check it regularly.

When can you retire?

The age at which you retire is entirely your prerogative. You could choose to retire tomorrow if you truly wanted.

However, depending on how old you are, you may have to wait a while before you can access any money from your pension, which could be an issue if you don’t have the savings to fund your lifestyle.

Private pensions can usually be claimed from age 55 (57 from April 2028), unless you need to retire earlier due to poor health or your pension scheme lists an earlier protected age.

Some private pensions have a Normal Pension Age (NPA) associated with them, meaning that if you wait to take it until you reach the set age, you can receive more.

The State Pension age is set to increase from 66 to 67 for both men and women between 2026 and 2028.

If you are unsure of your specific State Pension age and how much you will receive, there is a tool you can use on the Government website: Check your State Pension forecast – GOV.UK.

The age you choose to retire will depend on how much money you will need to live comfortably. Some people continue to work even after they reach pension age to subsidise their lifestyle.

Keep in mind that your pension income is combined with your other earnings when your Income Tax is calculated, so it could pull you into higher tax bands.

Need help creating a retirement plan that fits your future?

Whether you have just started thinking about retirement or have been preparing for years, you may need expert support to make the best decisions for the future you imagine having.

Our expert team can help you review your current position, identify any gaps or risks and highlight opportunities to make your savings, pension and wider estate work more effectively for your future.

Get in touch for advice on how you can retire comfortably.