Retirement planning advice: Building the future you want
Planning for retirement is about more than just money, it’s about building the life you want and ensuring you can live it with confidence, freedom, and peace of mind. Whether you’re still early in your career or already thinking about winding down, making thoughtful decisions today can lead to a financially secure and fulfilling tomorrow.
Retirement isn’t a one size fits all destination. It’s a stage of life shaped by your personal goals, values, and lifestyle. The right plan will ensure that your finances support that vision, not constrain it.
Start with a vision
Every successful retirement plan begins with a clear understanding of what retirement looks like for you.
Do you aspire to retire early and explore the world? Would you like to spend more time with family, perhaps helping your children onto the property ladder or supporting your grandchildren’s education? Maybe you're considering downsizing or relocating for a change in pace or climate.
Your vision will influence everything from how much you need to save, to how you invest, and how you draw income. Retirement is no longer a cliff-edge event, but a transition that may include part-time work, new ventures, or phased withdrawal from your business.
Key tip: Take time to articulate your goals. Clarity at this stage leads to more precise and effective financial strategies.
Key areas to focus on
1. Pension strategy
Pensions remain one of the most powerful and tax-efficient vehicles for retirement planning in the UK.
Maximise your contributions: The annual pension allowance is £60,000 (2025/26), and if unused in previous years, you may be able to carry forward allowances from the past three tax years.
Review old pensions: Consolidating older pensions can simplify management and may reduce costs or provide better investment options.
Investment alignment: As you approach retirement, your investment strategy should evolve. Growth may remain a priority in your early 60s, but protecting capital becomes more important as you begin to draw on your funds.
Key tip: High earners should also be aware of the tapered annual allowance, which can reduce how much you’re able to contribute tax-efficiently if your income exceeds certain thresholds.
2. Tax efficiency
How you draw income in retirement can significantly affect how much tax you pay and how long your savings last.
Pensions: Typically, 25% of your pension pot can be withdrawn tax-free. The rest is subject to income tax.
ISAs: Income and withdrawals from ISAs are tax-free, making them a useful tool for supplementing pension income without increasing your tax liability.
Gifting and estate planning: Strategic withdrawals and the use of trusts or surplus income gifting can reduce future inheritance tax liabilities.
Key tip: A structured withdrawal plan designed to take advantage of all available tax-free allowances can help extend the life of your retirement funds and minimise unnecessary tax leakage.
3. Cash flow forecasting
Cash flow modelling is a cornerstone of retirement planning.
It allows you to forecast your future income and expenditure, taking into account inflation, expected investment returns, healthcare costs, and one-off expenses like home renovations or helping children financially.
Stress testing your plan against different scenarios (e.g. market downturns, higher inflation, or increased longevity) can reveal gaps and opportunities.
Peace of mind comes from knowing your plan is resilient, and that you can afford both the essentials and the experiences that make retirement enjoyable.
Key tip: Review your cash flow plan annually. Circumstances change, and your retirement strategy should evolve accordingly.
4. State pension and other income sources
While private pensions and investments often form the backbone of retirement for high-net-worth individuals, it’s still important to account for:
The state pension: Currently worth up to £11,973 per year (2025/26) if you qualify for the full amount. Check your National Insurance record and consider making voluntary contributions if there are gaps.
Defined benefit pensions: If you’re entitled to one, this can provide a stable, inflation-linked income that requires careful integration into your wider strategy.
Other income streams: Rental income, dividends, or retained earnings from a business all contribute to the bigger picture and must be coordinated for tax efficiency.
Key tip: Ensure that all income sources are considered holistically, this is crucial for managing tax brackets and maintaining liquidity.
5. Estate and legacy planning
For many affluent individuals, retirement planning isn’t just about lifestyle, it’s also about legacy.
Pensions and inheritance: Defined contribution pensions can be passed on free of IHT, making them one of the most tax-efficient tools for legacy planning. It’s often better to draw on other assets first and preserve pension wealth where appropriate.
Wills and trusts: Make sure your will is up-to-date and reflects your intentions. Consider how trusts or lifetime gifting can support your estate strategy.
Lasting powers of attorney (LPAs): Ensure you have financial and health LPAs in place to protect your interests if you're no longer able to manage your affairs.
Key tip: Coordinating your retirement and estate plans ensures your financial affairs remain tax-efficient both during your lifetime and beyond.
Time to plan with purpose
The key to successful retirement planning lies in taking action, early and often. Even if retirement feels far off, the decisions you make now will significantly influence your options later.
The earlier you start, the more time your investments have to grow.
The more clearly you define your goals, the more tailored and effective your strategy can be.
The more proactively you plan, the more confident and in control you’ll feel, both today and into the future.
Ready to create a personalised retirement plan?
At Oculus Wealth, we help clients turn their retirement vision into reality with tailored, tax-efficient strategies that reflect their goals and lifestyle. Book a complementary consultation today.