Navigating retirement: Strategies for finding financial peace and addressing key concerns for retirees

The dream of a comfortable retirement, free from financial worries, is an aspiration that many may share.

We recently conducted our annual client survey, and it highlighted some key financial concerns for those approaching retirement and those who are already enjoying it.

One of the most significant concerns was “not having enough money to live my preferred lifestyle in retirement”.

This anxiety has consistently ranked as a top worry for our “Not Yet Retired” clients for the past three years. For our “Already Retired” clients, it remains a leading concern, taking the top spot in 2025.

The good news is that, with proactive planning and informed decisions, you can increase your chances of enjoying the retirement you desire without financial stress hanging over you.

Here are some key strategies to consider.

If you’re not yet retired, building your financial foundation is key

Building a strong foundation could be key to achieving your desired lifestyle in retirement.

Typically, you’ll want to start by defining what your ideal retirement looks like.

Do you want to:

• Travel and see the world?
• Help your children and grandchildren buy homes or explore further education?
• Keep working part-time either as a volunteer or earner?
• Downsize your home or relocate?

No matter your goals, it’s important to clarify them in your mind. Once you have a clear idea of where you’re going, you can focus on building your pension pot and other savings to support this journey.

Some options to do this could include:

• Maximise your pension contributions. Taking advantage of workplace schemes and other tax breaks, such as tax relief, could help you build a pension pot that is able to sustain your desired retirement lifestyle.
• Diversify your savings and investments. This is crucial for adding an extra layer of security and flexibility, as a diverse portfolio can protect you from the unpredictable ups and downs of the stock market.
• Regularly review your investment strategy. Ensure your risk tolerance and time horizon still align with your goals. This is something a Financial Planner can help you assess.
• Review your State Pension forecast. Accessible through the government website, your State Pension forecast estimates how much you are likely to receive when you start claiming it.
• Address your family’s financial security. Ensure your family will be taken care of should something happen to you by exploring protection options such as life insurance and critical illness cover. These can help provide a financial safety net for your loved ones.

If you are not quite on track to retire comfortably at the age you desire, you could consider alternatives, such as working for a few extra years to boost your wealth. You might even consider exploring part-time work in the early years of your retirement as a way of bridging any financial gaps.

If you’re already retired, maintain your lifestyle through regular reviews and proactive planning

If you’re already retired, affordably maintaining your ideal lifestyle will likely be your top priority.

With a Financial Planner’s support, you can work out a plan that will make full use of your wealth and ensure you can live the life you want for as long as you need.

A crucial first step here is to regularly review your budget and spending. Having a clear understanding of your income and outgoings could allow you to identify areas for adjustment and ensure your spending is sustainable over the long term.

While reviewing your finances, you may also want to consider:

• Optimising your income streams. On top of your private pensions and State Pension, consider other potential sources of income, such as renting out a property or taking on part-time work.
• Addressing the potential for care costs as you age. While it can be an uncomfortable subject, proactively researching your care options could help you prepare your finances should you need to pay for it in your later years.
• Managing your investment risk. Ensuring your investments are diverse enough to provide a sustainable income while mitigating risk where possible is key.
• Seeking professional guidance. The complexities of retirement planning are often made easier with expert guidance. Here, a Financial Planner can assess your situation, help you understand your options, and create a personalised plan that helps you achieve and maintain your desired retirement lifestyle.

Ultimately, addressing the concern of outliving your savings is better than burying your head in the sand. Regularly reviewing your wealth and assessing your outgoings can make it easier to pivot should you need to.

This is something we can help you with.

Get in touch

As always, you can get in touch with us to arrange a meeting, where we can discuss your unique financial needs in retirement.

Email us at enquiries@pen-life.co.uk, or call 01904 661140 to learn more about how we can help.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate cashflow planning or tax planning.

Workplace pensions are regulated by The Pension Regulator.

Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation, and regulation, which are subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.