The new retirement reality

8 October 2026

How affluent households are navigating retirement, resilience, and legacy.

Findings from the Rathbones Retire Well Index

Article last updated 8 October 2026.

The challenge facing affluent households is increasingly not whether they can retire, but how they can convert accumulated wealth into a secure, sustainable, and fulfilling later life. Decisions that were once relatively straightforward now involve balancing multiple income sources, managing investment risk, navigating changing tax rules, planning for the possibility of later-life care, and making decisions about how wealth should ultimately be passed to future generations.

This report explores those challenges through the experiences of 2,036 affluent individuals across the UK, each with at least £250,000 in investable assets. That threshold makes the central finding more striking: substantial wealth does not necessarily remove retirement uncertainty.

At the heart of the report is the inaugural Rathbones Retire Well Index, which assesses the practical actions people report taking to prepare for retirement and later life, rather than how confident they feel.

What's inside

Why substantial wealth does not always provide the confidence to spend, with 45% worried they have not saved enough despite 78% having a clear funding plan
What the inaugural Rathbones Retire Well Index reveals about the gap between feeling confident and taking practical action
How retirement is becoming a more gradual and flexible transition, with 42% of those yet to retire expecting to phase into it
Why later-life care remains a major planning gap, with 40% ranking it among their top concerns but only 12% planning for potential costs in detail
How changing relationships and modern family structures are reshaping retirement, inheritance and estate-planning decisions
Why affluent households are increasingly balancing their own retirement security with lifetime gifting and leaving a legacy

Download the report

The cover page of Rathbones' 'The new retirement reality' report

The behavioural decumulation paradox

78%

say they have a clear funding plan.

75%

understand their pension entitlements.

74%

believe they are on track.

45%

worry that they have not saved enough.

The four retirement gaps

Confidence versus preparedness

The affluent often feel prepared, but reported planning activity suggests important gaps remain.

Wealth versus income

Accumulating wealth and generating retirement income are increasingly separate challenges.

Concern versus action

Care, tax, and longevity concerns are widespread, but detailed planning often lags behind.

Lifestyle versus legacy

Today's retirees increasingly seek to balance enjoying their wealth with supporting future generations.

Introducing the Rathbones Retire Well Index

The Rathbones Retire Well Index is a behavioural benchmark designed to measure how actively affluent individuals are preparing for retirement and later life. We developed the Index to move beyond traditional measures of retirement confidence and focus instead on the practical actions people are taking, helping to identify gaps between how prepared people feel and the steps they have actually taken.

The Index combines seven equally weighted measures: the frequency and recency of financial reviews, pension engagement, retirement planning, legal readiness, planning for later-life costs, and consideration of pension inheritance tax changes. Together, these indicators provide a holistic view of retirement and later-life planning behaviours.

Respondents receive a score between 0 and 100, with higher scores reflecting greater levels of planning and engagement. The average score across those surveyed was 44 out of 100, suggesting that many affluent households are only moderately prepared for later life. The findings highlight a significant gap between confidence and action, underlining the importance of taking practical steps to build financial resilience in later life.

Download the report

Average behavioural engagement and planning score

44

Respondents who describe themselves as “extremely prepared” record an average score of only 50 out of 100. This finding reinforces the gap between confidence and reported planning activity that runs throughout the report.

Headline result and reporting bands

Part 1

Funding retirement

Can affluent households convert wealth into sustainable retirement income?

Wealth versus income

The most important distinction emerging from the research is between financial capacity and confidence to use it.

Every respondent has at least £250,000 in investable assets, yet 45% worry that they have not saved enough. At the same time, 78% say they have a clear funding plan, 75% understand their pension entitlements and 74% believe they are on track. The survey does not establish whether respondents are objectively underfunded; it reveals that wealth and a broad plan do not necessarily remove uncertainty.

This apparent contradiction is the behavioural decumulation paradox: retirement income is harder to visualise than a salary, and drawing on capital can feel fundamentally different from accumulating it.

45%

worry they have not saved enough, despite 78% reporting a clear funding plan.

The rise of the multi-income retirement

Retirement income already resembles a portfolio. Retired and semi-retired respondents draw income from 2.5 sources on average, most commonly workplace pensions, the State Pension, investment income, personal pensions, and ISAs.

This complexity helps explain why decumulation has become such an important challenge. It is not simply about having enough assets; it is about using those assets effectively.

The drawdown generation

Financial Conduct Authority (FCA) data shows that the number of pension plans entering drawdown rose by more than 25% during 2024/25, while total withdrawals reached £70.9bn. Pension freedoms have increased control, but also responsibility for withdrawal rates, investment risk, tax, and longevity. Retirees are increasingly managing their own retirement balance sheets.

Advice, engagement, and confidence

53% have taken or are currently taking formal advice about retirement. Among those using advice, the most commonly reported benefits are peace of mind (53%), understanding what to plan for (49%), and seeing what they might receive (46%). Among those not taking advice, 42% say they prefer to manage their own finances. These are reported associations and preferences, not evidence that advice caused a particular outcome.

The difference is visible in both perceived alignment and reported action. 84% of respondents taking advice say their plans align well with their desired retirement, compared with 66% of those not taking advice. They also score notably higher on the Retire Well Index, averaging 54 out of 100 compared with 32 among those who have not taken advice. Those who have taken advice are also more likely to report reviewing pensions, calculating income needs, and completing legal or planning actions. These findings remain associations rather than evidence of causation.

Retirement without a finish line

The findings suggest retirement is increasingly viewed not as a destination but as a transition. Rather than drawing a clear line between working life and retirement, many affluent households expect a more gradual and flexible progression.

The most commonly cited motivations for working in retirement are not purely financial. Remaining mentally active, maintaining a sense of purpose and preserving social connections feature prominently among respondents' reasons for continuing to work after traditional retirement age.

The challenge is no longer simply funding retirement. It is creating a retirement worth retiring into.

42%

yet to retire expect to phase gradually into retirement.

Why people expect to work in retirement

Key takeaway

The retirement challenge is no longer simply accumulating wealth. It is converting that wealth into sustainable income that can support a changing lifestyle, adapt to uncertainty, and potentially last for decades. For many affluent households, managing the transition from accumulation to decumulation may be the most important financial decision they ever make.

Part 2

Protecting retirement

How resilient are retirement plans to risk, uncertainty and disruption?

Prepared for retirement, unprepared for disruption

One of the most striking findings in our research is the difference between preparedness for retirement and preparedness for the events that could disrupt it.

Yet confidence drops sharply when respondents are asked about specific risks.

While retirement itself appears relatively well-planned, many of the factors most likely to influence retirement outcomes are far less carefully considered. This creates a protection gap, not necessarily in wealth accumulation, but in resilience: the ability of a financial plan to withstand unexpected events and of a household to adapt when circumstances change.

Complexity has become a retirement risk

Tax and pension policy feature prominently among respondents’ concerns. The difficulty is not necessarily a lack of information, but deciding what matters, what action is appropriate, and how future changes could affect a long-term plan.

The overall number of 59% who say information volume makes decisions difficult rises to 73% among respondents who feel unprepared and 87% among those whose plans align poorly with their desired lifestyle. Choice can empower households, but complexity can also create hesitation

81% vs 37%

prepared for retirement versus prepared for the loss of a spouse or partner.

Preparedness falls when life disrupts the plan

Concern is high, preparation is low

The research reveals widespread concern about later-life care. Many respondents rank the cost of long-term or residential care among their most significant retirement concerns. Yet detailed preparation remains the exception rather than the rule. Only a relatively small minority say they have planned for care costs in detail. Many have considered the issue only superficially.

40% vs 12%

rank care as a top-3 concern versus planned in detail.

Care planning is about more than money

One of the misconceptions surrounding care planning is that it is primarily a financial exercise. In reality, financial planning is only one component. Care planning also involves decisions around housing, family support, location, independence, and personal preferences.

The care-planning gap

Key takeaway

The greatest risks to retirement are often not the ones people can predict, but the ones they fail to prepare for. Inflation, policy changes, health challenges, and unexpected life events can all reshape retirement outcomes. As retirement becomes longer and more complex, resilience may prove just as valuable as wealth itself.

Part 3

Families, relationships and legacy

How personal circumstances shape retirement, family and the future of wealth.

Women and later life

The most consistent gender difference emerging from the research is confidence. Across several retirement measures, women report lower levels of confidence than men.

The differences are not limited to perceptions. Women are less likely than men to report reviewing pensions in detail (41% versus 50%), calculating retirement income needs or preferences (37% versus 47%), and consolidating pensions (18% versus 26%). One in 10 women report taking none of the listed retirement-planning actions.

66% vs 80%

women versus men who believe they are on track for the retirement they want.

Women report lower retirement confidence

The interaction between gender and household structure

The research suggests that single women may face a particularly distinct retirement planning context. 71% say they feel prepared for retirement, compared with 82% of couples and 81% of single men. 40% feel prepared for long-term care needs, compared with 51% of couples and 50% of single men. Single women are also more likely than couples to value advice on later-life planning (39% versus 30%).

68% vs 80%

single versus married/civil partnership respondents who look forward to retirement.

Complexity rises as family branches multiply

Almost a quarter of affluent respondents (24%) say inheritance concerns have made them less likely to remarry. The figure rises to 35% among blended families. Within the research segment described as older female divorcees and inheritors, 72% agree.

Across the full sample, 33% describe inheritance planning as “really complex”. This rises to 48% among blended families, 49% among respondents with children from multiple partners, and 48% among stepfamily households.

The pattern is even sharper for inheritance-related conflict. 14% report conflict overall, compared with 19% among blended families and 27% among those with children from multiple partners.

24%

say inheritance concerns have made them less likely to remarry.

Retirement comes first

Perhaps the clearest message emerging from the research is that most affluent households place their own retirement security ahead of inheritance objectives. A majority of respondents prioritise using their wealth to fund their own retirement. Far fewer identify leaving an inheritance as their primary objective. This finding challenges a longstanding assumption about retirement wealth.

The 57% prioritising retirement comprises two distinct positions: 30% expect to draw as much as they need and do not see inheritance as a priority, while 27% expect to draw most of what they need but still try to leave something behind. A further 17% aim for an even balance, 13% would draw only what they need to protect inheritance, 5% would preserve as much as possible, and 8% are unsure.

The pension inheritance question

Recent policy developments are likely to accelerate this debate. From April 2027, significant changes to inheritance tax treatment will affect many pension arrangements, bringing most unused pension funds and pension death benefits within the value of an estate for inheritance tax purposes. The change has important implications.

The awareness-action gap

The policy change is not universally understood. 24% of respondents appear unaware of the proposed pension inheritance tax treatment. Among the 76% who are aware, almost two-thirds (65%) report taking at least one of the listed actions, while 35% report taking none. The findings show both engagement and a remaining gap: some households have not yet reached awareness, while others are aware but have not acted.

57% vs 18%

prioritise using wealth for retirement versus inheritance.

The lifestyle-versus-legacy balance

Key takeaway

Affluent households are increasingly prioritising their own financial security and quality of life in retirement while continuing to support future generations. Inheritance remains important, but the focus is shifting from preserving wealth at all costs towards balancing lifestyle, flexibility, and legacy. The question is no longer simply what people leave behind, but how wealth can best be used throughout later life.

That is the Great Decumulation Challenge: moving from wealth accumulated to wealth used well.

Download the full report

What the findings suggest affluent households should consider

The findings do not prescribe one retirement journey, but they point to seven questions:

1.

Is confidence supported by action and regular review?

2.

Has planning moved beyond accumulation to a sustainable income strategy?

3.

Could the plan adapt to inflation, illness, care, family change, or policy reform?

4.

Have longevity, care preferences, and later-life support been considered?

5.

Does the legacy plan reflect modern family realities and expectations?

6.

Is the balance between lifestyle, resilience, and inheritance explicit?

7.

Does the plan reflect personal circumstances, including relationship status, health, and work history?

A new definition of retirement success

The challenge is no longer simply building financial resources. It is deciding how those resources can support income, resilience, care, family, and legacy without allowing the desire for security to prevent wealth from serving its purpose.

Successful retirement increasingly appears to require three interconnected outcomes:

Funding retirement

Having the resources to support the lifestyle people want.

Protecting retirement

Building resilience against uncertainty, changing circumstances and later-life risks.

Passing on wealth

Supporting future generations in ways that reflect personal values and family priorities.

The households best positioned for retirement are unlikely to be those that focus exclusively on one of these objectives. They are likely to be those that successfully balance all three.

Affluence creates capacity, not certainty. The future of retirement may belong not to those who have accumulated the most, but to those who have converted wealth into a flexible plan and the confidence to use it well.

Frequently asked questions

What is the Rathbones Retire Well Index?

The Rathbones Retire Well Index is a survey-derived behavioural engagement and planning index. It combines seven equally weighted metrics covering financial review, pension engagement, retirement planning, legal readiness, later-life costs, and consideration of pension IHT changes. It is not a measure of financial adequacy and has not been validated as a predictor of future retirement outcomes.

What is the average Retire Well Index score?

What is the behavioural decumulation paradox?

How many people have planned for later-life care costs?

Are people aware of the April 2027 pension inheritance tax changes?

Survey methodology

How the research was conducted

The new retirement reality report is based on original quantitative research commissioned by Rathbones and conducted by Savanta.

A 15-minute online survey among UK adults with at least £250,000 in investable assets.

The sample covered three core life-stage groups: mid-career, pre-retirement, and retired affluent individuals.

UK affluent adults

2,036

Minimum investable assets

£250,000+

Fieldwork dates

3-27 June 2026

Measure	Sample composition
Age	35-54: 21% \| 55-64: 57% \| 65+: 23%
Gender	Women: 41% \| Men: 59%
Investable assets	£250,000-£499,999: 59% \| £500,000-£999,999: 25% \| £1 million+: 16%.
Main source of wealth	Savings from earnings: 38% \| personal investments: 23% \| inheritance: 16% \| property: 13% \| business-related: 8%.

Bases vary by question and subgroup. Percentages may not sum to 100 because of rounding, multi-code questions, or excluded responses.

Download the report

Download the full report

Start the conversation

Retirement is no longer simply about building wealth. As this report shows, the challenge is turning that wealth into sustainable income, preparing for later-life risks, and balancing lifestyle ambitions with long-term financial security.

Whether you're planning for retirement, navigating pension decisions, considering later-life care, or thinking about the legacy you want to leave, we're here to help. Please reach out via the buttons below.

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The new retirement reality

What's inside

The behavioural decumulation paradox

78%

75%

74%

45%

The four retirement gaps

Confidence versus preparedness

Wealth versus income

Concern versus action

Lifestyle versus legacy

Introducing the Rathbones Retire Well Index

Average behavioural engagement and planning score

44

Funding retirement

Wealth versus income

45%

The rise of the multi-income retirement

Advice, engagement, and confidence

Retirement without a finish line

42%

Protecting retirement

Prepared for retirement, unprepared for disruption

Complexity has become a retirement risk

81% vs 37%

Concern is high, preparation is low

40% vs 12%

Care planning is about more than money

Families, relationships and legacy

Women and later life

66% vs 80%

The interaction between gender and household structure

68% vs 80%

Complexity rises as family branches multiply

24%

Retirement comes first

The pension inheritance question

The awareness-action gap

57% vs 18%

That is the Great Decumulation Challenge: moving from wealth accumulated to wealth used well.

What the findings suggest affluent households should consider

1.

2.

3.

4.

5.

6.

7.

A new definition of retirement success

Funding retirement

Protecting retirement

Passing on wealth

Frequently asked questions

How the research was conducted

UK affluent adults

2,036

Minimum investable assets

£250,000+

Fieldwork dates

3-27 June 2026

Download the report

Start the conversation

More ideas on retirement from Rathbones

The triple lock could change from 2030 - how to plan your retirement

Retiring before 60: planning for income, pensions, and financial independence

Wealth planning in your 50s – are your financial plans on track?

Why relying on your business alone for retirement could leave you exposed to risk

Sign up for insights

Make a plan with one of our experts

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