How to plan for retirement

Why do I need to plan for retirement?

The state pension alone is unlikely to cover all your costs in retirement. 

In 2025-26 it's worth £11,973 a year at its full level, but single pensioners need an income of £13,400 just to achieve a 'minimum standard' of living, according to the Pensions and Lifetime Savings Association.

Saving as much as possible, as early as possible, into your private pensions will give you the best chance of being able to afford a comfortable lifestyle when you stop working. 

• Find out more: how much will I need to retire?

If you take out an annuity as a result of using the service from HUB Financial Solutions, Which? will earn a commission to help fund our not-for-profit mission.

Check your annuity options

Which? says you can trust HUB Financial Solutions to compare across the whole market

Find out more

How to plan for retirement checklist

Here's how to put yourself in the best position.

1. Check how much your pension is worth

Many of us build up multiple pension pots with different employers throughout our working lives. 

This means it can be hard to keep track of them all, but doing so will help you find out whether you're on course for a comfortable retirement.

Each scheme should give you an annual pension statement that shows how much your pension is currently worth, and how much it could be worth when you retire. 

• Find out more: calculate how much your pension might be worth at retirement

2. Check your state pension

The state pension can provide a major boost to your retirement finances, though you won't be eligible for it until you turn 66 (rising to 67 between 2026 and 2028).

The full new state pension is worth £230.25 a week in 2025-26 (£11,973 a year), though the amount you receive depends on your National Insurance record. 

You can get a state pension forecast from the gov.uk that will give you an idea of how much you're on course to get, and whether you can increase it. 

• Find out more: how much state pension will I get?

3. Track your expenditure before you retire

Having a clear idea of what you spend your money on now will help you to plan for the longer-term.

Bear in mind that while you're likely to have a lower income than when you were working, you'll be spending less in certain areas (commuting to work, for example).

• Find out more: how much will I need to retire?

4. Think about when and how you'll access your pension

You don't have to stop working to take your pension. You can access money in private pensions once you reach the age of 55 (rising to 57 in 2028).

However, the longer you wait to start taking your pension, the lower the risk that you'll run out of money later in retirement. 

There are various ways to access your retirement savings, including withdrawing lump sums, buying an annuity and using pension drawdown.

• Find out more: what can I do with my pension pot?

5. Get professional help and advice

You're not on your own when it comes to making financial decisions about retirement.

If you're 50 or over and have a defined contribution pension, you can use Pension Wise - the free and impartial guidance service backed by the government.

If you're looking for tailored advice, or your circumstances are complex, consider enlisting the help of an independent financial adviser.

• Find out more: how to get retirement and pension advice

How do I plan for retirement at different ages?

The earlier you start planning for retirement, the longer you'll have to build up adequate savings. 

Here are some of the things you should be thinking about at different ages.