Living in retirement
Retirement is an exciting chapter – after all, you’ve worked hard for it. But it also comes with important decisions about how to make your money last and work for you. Knowing what your options are, or even what you need to consider, can sometimes be confusing or overwhelming. That’s why we’ll walk you through the key things to think about throughout retirement.
Making your money last
With many of us living longer than ever before, retirement could easily last 25-30 years or even more. That’s a lot of life to enjoy!
But living longer means your money needs to last longer too. It’s impossible to know exactly how long you’ll live, but understanding the average life expectancy in the UK and following our three simple steps, can help you ensure your money lasts throughout retirement.
Knowing if your pension savings will stretch through retirement can be hard to picture with any accuracy. Use our simple calculator to get an idea of what your income and spending might look like in retirement, so you can check whether your plans are on track and spot any gaps.
No one wants to be in a position where they run out of money later in life. Taking the time to do a little planning now can help you feel confident your savings will last as long as needed and make a real difference to your future peace of mind. A commonly used approach when withdrawing from your pension is the 4% rule, which is designed to help your savings last throughout retirement.
To help ensure your savings go the distance, it’s important to understand how much income you can safely take through drawdown, and what that means for the lifespan of your pension.
See what this could mean for you with our useful calculator.
Your Retirement Income
Retirement isn’t one-size-fits-all and you may find that your priorities shift over the years. Even if you’ve already started taking your pension, you can explore alternative ways to access your savings and decide whether a different approach might better fit your plans. This can include reviewing your retirement income options and considering an investment pathway that better aligns with your goals.
Flexible income (drawdown)
You can leave your money in your pension and take a regular income from it.
Guaranteed income for life (annuity)
You can use your money to buy an annuity from an insurance company, to provide you with a regular, lifelong income.
Lump sums
You can leave your money in your pension and withdraw ad hoc lump sums, as and when you need them.
Leave it where it is
You can delay taking money from your pension until the time is right for you.
Your retirement income needs can change over time, and how you choose to invest your remaining pension savings can make a difference to how long your money lasts. Our investment pathways can help you find an approach that fits your retirement goals.
The government’s Pension Wise service offers free, impartial guidance to over 50s, to help you understand your options at retirement. You can access the guidance online at moneyhelper.org.uk or call them on 0800 011 3797.
Other things to consider for your retirement
Understanding Tax Implications
You should think carefully before withdrawing from your pension, as it will impact the amount of tax you'll need to pay. Pension withdrawals above your tax‑free amount count as income, which could increase your tax bill and affect your future retirement income. Our calculator can help you work out the tax you might pay.
Delaying taking your state pension
You don’t have to take your state pension when you reach state pension age (currently 66). If you choose to delay it, you could receive a higher amount when you do eventually decide to take it. There are a few key factors to consider, including how long you're fortunate to live for.
Protect yourself from scams
Pension scams are on the rise in the UK, and this could put your retirement savings at risk. The more you know, the safer you are. Explore the common financial threats, see how we’re working to safeguard you, and find guidance if you ever need help.
Planning ahead in retirement
Discover the importance of planning ahead through Melanie’s real-life experience of setting up a Power of Attorney and getting her mother’s financial arrangements in order. You can also discover the important steps you can take to stay prepared in retirement via our handy checklist.
Make sure you’re preparedInheritance Tax changes
Learn what the latest inheritance tax updates could mean for your finances in later life. We break down the key points in simple terms and explain how the changes may affect the way you plan to pass on your wealth.
Read about Inheritance Tax changesStay connected to your pension
Keep your retirement running smoothly by checking in on your Fidelity pension whenever you need to. Log in to PlanViewer to keep track of your pension savings and stay in control.