Why it’s important to check your retirement progress
A good retirement plan isn’t something you set once and forget. Life changes, markets move, and your goals often evolve over time. Regular check‑ins help you spot issues early, while there’s still time to adjust.
Markets and inflation don’t stand still
Has the performance of your investments been disappointing because of a major stock market downturn, or because a surge in inflation has eroded the real value of your portfolio? It’s always good to ride this out rather than selling at the bottom. And a well-constructed portfolio, invested in a range of assets, including companies positioned for long-term growth, should prove resilient over time. But if you may decide that you need to respond by putting more money into your portfolio – buying into investments at a time when they’re cheap and offer good value.
Investment markets naturally rise and fall. Short‑term volatility can feel unsettling, but long‑term investing is rarely a straight line. At the same time, inflation quietly erodes spending power. What felt like a comfortable income target a decade ago may not stretch as far in the future.
Reviewing your retirement investment helps you understand whether your savings are still keeping pace with these changes, rather than drifting off course without you noticing.
Your life goals may change
Have you made a major decision about your retirement? For example, have you decided that the daily grind of your job has become too much, so you want to retire earlier than you’d planned? Has a close friend retired and gone round the world, giving you a hankering for doing the same thing? Retirement today looks very different from retirement a generation ago. Some people want to stop work completely, while others plan to phase into retirement or keep working part‑time. You might want to travel more, finally heading off on that gorgeous Caribbean getaway you’ve been dreaming of, help family financially, or move home.
Checking your progress gives you the chance to reflect on whether your current plans still support the lifestyle you now have in mind.
Small changes can make a big difference
The earlier you spot a gap, the easier it often is to fix. Small increases to contributions, modest changes to your investment approach, or simply bringing old pensions into view can have a meaningful impact over time.
Regular reviews turn retirement planning into an ongoing conversation, rather than a last‑minute scramble.
How to tell if you’re on track for retirement
Being on track isn’t just about the size of your pension pot. It’s about how your savings, investments, and risk level work together to support your long‑term goals.
A simple annual check‑in – most people can do this in 10 minutes:
- Check your total pension savings
- Check what you’re paying in
- Check how your pension is invested
- Check your state pension entitlement
- Note any life changes since last year
- Decide: no change needed / small adjustment / speak to someone
Assess your savings and pension balance
Start by looking at what you’ve already built. This includes workplace pensions, personal pensions, and any other retirement savings you have.
Ask yourself:
- Do I know how much I’ve saved in total?
- Do I have a clear idea of what income that might provide in retirement?
- Does it broadly align with the lifestyle I want later on?
You don’t need a perfectly precise answer. A realistic range is often enough to help you judge whether you’re broadly on course or whether there’s a shortfall worth addressing.
Check how your investments are performing
Performance matters, but it’s important to consider the long view. Investments should be growing over time, but short‑term dips are a normal part of investing.
It can help to look at:
- Performance over several years, not just the last few months
- Whether your investments are diversified across different assets (spread across different types of investments, so you’re not relying on one area)
- How your pension has behaved during both strong and weaker market periods
If your pension hasn’t grown as you expected, it doesn’t automatically mean something is wrong. The key question is whether it still supports your long‑term plan.
Understand your level of risk
This isn’t about choosing specific investments, but about checking whether your current level of risk still feels right for where you are today. If you’re within 10 years of retiring, you might want to pay extra attention to this section.
Risk is a balancing act. Being too cautious can mean your money struggles to grow enough to outpace inflation. Being too aggressive can lead to uncomfortable swings in value, especially as retirement approaches.
Consider:
- How much you’re comfortable with, when it comes to investment ups and downs
- How long you have until you plan to retire
- Whether your current investments still match your attitude to risk
As retirement gets closer, many people gradually reduce risk – but that doesn’t mean avoiding growth altogether. The right balance is personal and can change over time. Read more about investing in retirement here.
What to do if your retirement plans aren’t on track
If your review suggests you’re not quite where you’d like to be, try not to panic. Being off track isn’t a failure – it’s a prompt to take action.
Adjust your contributions where possible
Increasing how much you save, even slightly, can make a meaningful difference over the long term. Small, regular increases are often more manageable than large, sudden changes.
You might consider:
- Increasing contributions when your income rises
- Using bonuses or windfalls to top up your pension
- Reviewing whether tax relief is working as efficiently as it could (something an adviser can help with if needed)
Consistency matters more than perfection. Doing a little more, sooner rather than later, can help close gaps over time.
Review your investment approach
If your investments no longer match your goals or time horizon – how long until you need the money – adjusting your strategy may help. This could involve rebalancing (bringing your investments back to your chosen mix after markets move), changing funds, or reviewing how risk is managed within your pension.
It’s important to avoid reacting emotionally to short‑term market movements. Any changes should support your long‑term plan, not undermine it.
Speak to a financial adviser
Retirement planning can be complex, particularly if you have multiple pensions, are self‑employed, or are approaching retirement age. Professional advice can help bring everything together and provide clarity.
An adviser can:
- Review your current position
- Stress‑test your plans against different scenarios
- Help you make informed adjustments with confidence
Having expert support can turn uncertainty into a clear, practical plan.
Keeping your retirement plans moving forward
Retirement planning isn’t about getting everything perfect straight away. It’s about staying engaged, making thoughtful adjustments, and keeping your long‑term goals in sight.
By reviewing your retirement investment regularly, understanding what "on track" means for you, and seeking support when needed, you could give yourself the best chance of building a future that feels secure and flexible.
If you’re uncertain about your progress or would value a fresh perspective, speaking to your Rathbones contact can help turn questions into a clear plan for the years ahead.
