What do you really want your retirement to look like? It’s a simple question, but one many people don’t think about until they’re close to finishing work.
For some, it’s about travelling the world or even moving abroad. For others, it might mean working part-time in a role they love, volunteering for a cause, or focusing on family and friends.
Before diving into pension plans and investment strategies, wealth experts say it’s vital to ask these questions first. “It’s easy to get caught up debating financial products, but those are only a means to an end,” explains Natalie Mann, a wealth manager at HSBC UK. “The first priority is to understand what’s important to you. Only then can we have a meaningful conversation about how to achieve it.”
Retirement planning has grown more complex in recent decades. People are living longer than ever—average life expectancy in the UK has risen from 75 in 1990 to 82 today. That means a potentially longer retirement to fund, often 20 years or more.
Adding to the complexity, pension rules have changed. Since reforms in 2015, savers no longer need to buy an annuity to guarantee income. Instead, many choose to keep their funds invested and draw money directly. While this can work well, it brings new challenges, such as how to invest for growth while ensuring you don’t run out of money later in life.
“For many people, saving and investing for retirement has become a lifelong pursuit,” Mann says. “They’re having to think about how to accumulate wealth, how to spend it sustainably, and even how to pass on what’s left to the next generation.”
That’s why proper groundwork is essential. Retirement planning typically revolves around two core questions: how much income you’ll realistically need once you stop working, and which mix of products will help you build and draw from that pot most efficiently. “We start by gathering detailed facts about your finances and goals,” Mann explains. “Then we look at whether you want to retire early, travel, or support family, and we work out how to close any gaps. That means looking at what you can save, how to invest it, and the best wrappers to use.”
Risk appetite is another key factor. Many people instinctively play it safe with pension savings, even though they may not need to access the money for years and could benefit from some volatility in return for higher returns. On the other hand, those already drawing an income may need to be more cautious.
It’s never too late to start. While some people organise their retirement planning early and stick to regular reviews, many leave it until later in life. With multiple workplace pensions, private schemes, and the state pension, it’s easy to end up with fragmented pots that are hard to manage.
“My role is to bring clarity and purpose, even if you’re starting in your forties, fifties, or later,” Mann says. “We focus on targeted investment, efficiency, and flexibility.”
She also warns against relying too heavily on default pension options. Every employer now offers a scheme, but the default investments may not suit your goals. Some products assume you’ll buy an annuity or take 25 percent tax-free at once, which might not fit your plans.
Savings need not stop at pensions. ISAs, which allow tax-free withdrawals, and even higher-risk vehicles like venture capital trusts can complement a pension, depending on your timeframe and risk tolerance.
Another factor is estate planning. From April 2027, most unspent pension pots will fall under inheritance tax rules, potentially taxed at 40 percent. This makes it even more important to plan how to pass wealth efficiently to family. “Protecting the wider family is a key aim for many savers, so estate planning has to sit within a retirement plan,” Mann notes.
Professional advice is strongly recommended. Retirement and tax planning depend heavily on personal circumstances. At HSBC UK, Mann says, clients benefit from access to specialists in portfolio strategy, as well as legal and estate planning experts. “My relationship with the client is personal, but I can bring in support from across the bank to deliver for them.”
Retirement may feel far off, but starting with clear goals and the right strategy can make all the difference to enjoying financial freedom in later life.
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