What does retirement mean to you?
For some people, retirement might mean stepping away from your old routines completely, especially around work, and focusing on family, travel, or personal interests – you might finally have time for that pottery class you’ve been putting off or to get away and put your feet up on a sun lounger in warmer climes. For others, it’s an opportunity to work differently: perhaps part-time, by throwing yourself into a passion project, or devoting some of your time and experience as a non-executive director.
In the UK, the proportion of people working beyond State Pension age has risen over time, reflecting both longer life expectancy and a desire for more flexible working lives. Recent data from the i (ONS) shows that a significant and growing number of people in their late sixties and seventies remain in work in some way or other, often in senior or specialist roles. The Centre for Ageing Better, which uses labour market data from the ONS, puts this figure at 1.43m as of 2024.
Whatever retirement means to you and whenever you plan to retire, we can help bring financial clarity to the lifestyle changes you want to make and the ambitions you have for your future.
Are you ready for retirement?
The traditional idea of a fixed “finish line” is becoming less relevant. Many people now think in terms of a gradual transition rather than a single date. Life is more like a journey, and retirement is a series of chapters within it.
People increasingly seek not just financial security, but also purpose, connection and variety.
Research from charities, think tanks, and policy institutes focused on ageing (like the National Institute on Aging or the McKinsey Health Institute) has highlighted that many of us would prefer to reduce hours gradually rather than stop working altogether. Or to earn income from hobbies and interests developed over many years. Staying active – mentally, physically and socially – is also often linked with better wellbeing in later life.
A financial plan can help you explore how much flexibility you have.
For example, you may want to ask:
- Could you afford to move to a three or four-day week?
- What if you took a career break or sabbatical?
- How would taking on a non-executive role or consultancy affect your income and tax position?
Your financial planner can work with you to model different scenarios, combining financial planning and investment management so you can see how those choices might play out over time. You get to decide what your future will look like and then build it.
Is now a good time to retire?
As the world has become more interconnected and complex it has also become more prone to shifts in the global economic climate. It’s natural to wonder whether current market conditions make this the “right” moment to retire.
History shows that markets move in cycles. Retiring at the top of a market may feel reassuring, while retiring after a period of volatility can feel more daunting. However, retirement is a long-term decision, and short-term market moves shouldn’t drive your decision.
What matters more is having:
- An investment strategy aligned with your time horizon and attitude to risk
- Appropriate diversification across asset classes and regions
- A clear plan for how much you intend to withdraw, when you retire, and from where
If you plan to convert a chunk of your pension into a guaranteed income – for example, by buying an annuity – then reducing investment risk as you approach your retirement date may make sense. If you expect to stay invested and draw income over many years, then your portfolio may still need a meaningful exposure to growth assets such as stocks, whose value tends to grow significantly over time. It’s best, though, to balance these with assets that can help manage volatility.
How do you retire early?
Retiring earlier than the traditional state pension age is possible, but it requires careful preparation. The state pension age is increasing from 66 to 67 between 6 May 2026 and 6 April 2028, depending on your date of birth. A further rise to 68 is expected in the future but the timing of this hasn’t been confirmed. You can usually access your private pension at age 55, rising to 57 from April 2028.
The earlier you stop earning, the longer your savings must last and the less you may be able to put aside to benefit from investment growth. With life expectancy increasing, planning for a 100-year life is becoming more common.
Some people follow approaches such as the Financial Independence, Retire Early (FIRE) movement. This emphasises high savings rates, disciplined spending and long-term investing. This can work well for some personalities and lifestyles, but not everyone will want to live that frugally. Life is also for living, not just retiring early, and making conscious, purposeful decisions on how you’re spending your time and money will help you live well and retire well.
For many high-net-worth people, early retirement is less about extreme budgeting and more about aligning their wealth, spending and values.
A holistic financial plan can show:
- How much income could be drawn sustainably from pensions, ISAs and other investments
- How early retirement might affect gifts to family or charitable giving
- Whether you can retain a buffer for unexpected costs such as care or major repairs
Do you need help with retirement planning?
Our experts can help you prepare for retirement. We combine financial planning, tax efficiency, and investment management to help you achieve your goals.
Reach out to your usual Rathbones contact or fill out our enquiry form below to get started. We’re here to help.
