More than half of those yet to collect their pension see traditional cliff-edge retirement as an unrealistic aspiration, according to a recent FTAdviser report.

What’s more, changing expectations mean that many people now believe that they will never retire, expecting instead to work well into later life.

Thankfully, long-term financial planning aligned with your goals gives you the best chance of retiring on your own terms, when and how you like.

Keep reading to find out how.

More than half of those yet to retire think their “hard-stop” dreams are unrealistic

While traditional retirement has always been seen as a “cliff edge” of full-time work one day, and full retirement the next, this view is increasingly outdated.

According to figures published by FTAdviser:

• 44% of pre-retirees hope for the traditional “hard stop”
• 47% hope for a period of transition via phased retirement
• 9% hope to carry on working beyond their retirement date.

Worryingly, 20% believe they will have to keep working, even though that isn’t currently their plan. This aligns with a rising view among UK workers, that retirement is unaffordable and that they will need to continue working for life.

Indeed, 41% of UK adults expect that within the next 10-25 years, never retiring will be the norm. This figure stood at just 13% the last time the question was asked.

Opting for a phased retirement – or choosing not to retire at all – can have benefits, both financially and emotionally. The important consideration, though, is whether a longer career aligns with your goals, or whether economic factors force your hand.

It is here that The Pension Planner can help.

Early goalsetting is the key to achieving your retirement dreams… whatever those dreams look like

It’s never too early to start thinking about retirement. In fact, there are some key retirement questions you should ask yourself now, and in the years leading up to your retirement date.

1. When do I want to retire?

As with all goal-based questions, nothing is set in stone. When you’re just starting out, it’s unlikely you’ll have all the answers. Ask yourself these same questions throughout your working life and remember that a robust and adaptable plan means your answers can change.

You’ll need to think about your current provision – from both pension and non-pension sources – and about when retirement might be affordable.

Many factors will affect this, including whether you want a traditional or cliff-edge retirement, and how long your retirement might need to last.

2. What will my retirement look like?

Life events and milestones can quickly change your priorities but thinking about and then setting your goals is key.

If you enjoy going abroad, your retirement plans might involve world travel. This can be expensive, so you’ll need to factor it into your pension savings as early as possible.

As retirement approaches, the arrival of grandchildren might curtail your travel plans. You might decide you want to stay home more. This is ok – your robust plan can adapt to you.

3. How expensive will my planned retirement be?

The earlier you start saving for retirement, the smaller proportion of monthly income you’ll need to put aside. You’ll also have longer to amass your retirement pot, with more time for compound growth and potential investment returns.

Understanding how much to save is important. You’ll want to manage your budget in the present while paying your future self.

The UK pension savings gap is widening so don’t let poor planning impact your retirement plans

FTAdviser recently suggested that an extra 1.2 million people could fail to secure even a minimum retirement lifestyle. This is according to figures from the Pension Lifetime Savings Association (PLSA), which confirms the UK pension savings gap is widening.

Meanwhile, PensionsAge reports that even high earners are in for a shock, with only 39% on track for a comfortable retirement.

Your goal will be more than a “comfortable” retirement. That means starting to plan and save early and then checking in with your retirement plans throughout your working life to ensure you’re still on track. More importantly, check in with your goals to ensure your plans still align.

The traditional cliff-edge retirement might be off the table for many, but with The Pension Planner’s help, this needn’t be the case for you. And if your plans change, and a phased retirement begins to look more appealing as the big day approaches, we can help here too. Our team of experts can ensure it’s a viable – and tax-efficient option – for you.

Get in touch

If you need help managing your long-term retirement plans, whatever they look like, get in touch. Email info@thepensionplanner.co.uk or call 0800 0787 182.

Please note:

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

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.