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Fewer than one in 10 Britons are on track to achieve a comfortable retirement, according to the latest Retirement Living Standards research from Pensions UK.
While around four in five people (82%) are expected to achieve the minimum standard of living in retirement, fewer than a quarter (23%) are on track for a moderate lifestyle. Meanwhile, just 9% are forecast to reach a comfortable one.
Statistics like these help explain why so many people revisit their financial plan in their fifties and ask an important question: have I done enough?
The answer will be different for everyone. But this decade can provide a valuable opportunity to review your finances, strengthen your plans and make informed decisions about the years ahead.
At a glance
- Many people only start actively planning for retirement in their fifties.
- Even if you started planning earlier, your fifties can still be a useful time to review pensions, savings and retirement goals.
- Understanding the income you need for your desired lifestyle can help you to identify any gaps.
- Speaking to a financial adviser can help you understand where you stand and create a clearer plan for retirement and beyond.
“45% of retirees only started actively planning in their fifties”
If you feel late to retirement planning, you are far from alone.
Research commissioned by the Department for Work and Pensions found that 45% of semi-retired people and 40% of fully retired people only started actively planning for retirement in their fifties.
There are many reasons why this decade became a financial turning point. Earlier years are often dominated by competing priorities such as mortgages, childcare costs and career progression. By the time you’re 50, there is often more space to think about longer-term goals.
This can be a useful time to review pension contributions, understand what level of retirement income your existing savings might provide, and identify any gaps between where you are and where you would like to be.
Importantly, retirement planning is not simply about a pension pot. It is about understanding how all your assets, including savings, investments and property, fit together to support the lifestyle you want in retirement.
£45,400: What does a comfortable retirement actually look like?
Retirement can feel very different once you understand what your desired lifestyle may cost.
According to Pensions UK, a single person would need an annual income of £45,400 for a comfortable retirement, while a moderate standard of living would require £32,700 a year.
These figures provide a useful benchmark for assessing whether your current plans align with your future expectations.
For some people, a comfortable retirement may mean regular holidays, eating out and the flexibility to spend more on hobbies and leisure activities. For others, it may simply mean having enough income to live comfortably without financial stress.
The important thing is to ascertain what retirement looks like for you and whether your current savings, investments and pensions are likely to support it.
This is often where the question shifts from “how much have I saved?” to “will what I’ve saved support the life I want?”.
35% of retirees wish they had planned more thoroughly
It is easy to assume everyone else has retirement planning figured out. The reality is often very different.
Research from Canada Life found that 35% of retirees wish they had planned more thoroughly for retirement.
That statistic highlights an important point. Doubts about whether you have done enough are common, even among people who have already stopped working.
Looking back, many retirees say they would have started saving earlier, reviewed their plans more regularly or spent more time thinking about the lifestyle they wanted in retirement.
While none of us can change the past, we can influence what happens next.
In your fifties, this may be an opportunity to make targeted adjustments, whether that means increasing pension contributions, reassessing investments, reducing debt or refining your retirement goals.
A quick ‘Have I done enough?’ checklist
When you ask yourself whether you have done enough for retirement, you are rarely thinking only about your pension balance.
Instead, you might consider the following questions:
- Could I retire when I want to, or would I need to work for longer?
- Do I understand how much income my pensions and other assets could provide in retirement?
- Could I afford to reduce my working hours if I chose to?
- Would I be able to cope with unexpected expenses without significantly affecting my lifestyle?
- Do I have a clear idea of what I want retirement to look like?
- Could I support family members financially if needed without jeopardising my own security?
- Have I reviewed my pensions, savings and investments within the last few years?
- Am I confident that my current plans still reflect my goals and priorities?
If these questions have given you pause for thought, now could be a good time to review your plans. Understanding where you stand today can help turn uncertainty into a clearer plan for the years ahead.
A Flying Colours adviser can help you take a more joined-up view of your finances and work with you towards a clearer plan for retirement and beyond. To arrange a conversation, visit: https://fcadvice.co.uk/book-an-appointment/
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.
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 (minimum of 5 years) and should fit in with your overall risk profile and financial circumstances.
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. Past performance is not a reliable indicator of future performance.
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 Financial Conduct Authority does not regulate estate planning, tax planning, trusts, or Will writing. Note that life insurance 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.
Planning horizons are illustrative and will vary based on individual health, circumstances, and life expectancy.