The retirement checklist

Before diving into the numbers, what does life after work look like for you? Do you want to stop completely, ease into it gradually, or do something totally different – like consulting, starting a passion project, or volunteering?

The clearer your vision, the easier it is to build a financial plan that supports it.

Retirement today isn’t a single event – it’s a lifestyle shift. Nearly half of under-35s expect to semi-retire rather than stop working altogether (Aviva, 2023), and more people of all ages are starting to rethink what ‘life after work’ really means.

As the Centre for Ageing Better puts it:

“Later life can be a great period of our lives, but to make the most of it we need enough money to live on, some good friends to rely on, and a suitable home to live in.”

Whether you’re in your 40s and building momentum or in your 60s, ready to downshift, a clear vision is your starting point.

Step 2: Get clear on your future spending

Once you’ve pictured the lifestyle you want, it’s time to ask: what will it actually cost?

Retirement often brings a shift in spending – you might save on commuting or work clothes, but spend more on holidays, hobbies, or time with family. The key is to be realistic, not restrictive.

Start by thinking about:

• Essential costs – housing, utilities, food, transport, insurance.
• Lifestyle spending – travel, dining, entertainment, gifts, hobbies.

Then look ahead:

• Will you want private healthcare or support later in life?
• Do you hope to support children, grandchildren or causes close to you?
• Could benefits like Pension Credit or Council Tax Reduction apply?

You don’t need all the answers, but having an approximate figure gives your plan real shape. Use our retirement budget planner to map out the numbers and see how they align with your goals.

Step 3: Map out your income streams

With a clearer idea of what you might need in retirement, the next step is to determine what you’ve got and where your income will come from.

Check:

• Your State Pension forecast. Visit GOV.UK to see how much you’re on track to receive and when you can start claiming it.
• Review workplace pensions and personal pensions. Request updated statements for any defined benefit or defined contribution pensions you’ve paid into over your working life.
• Lost pensions. Moved jobs or house? Use the Pension Tracing Service to find any pensions you’ve lost touch with.
• Other assets, including:
  • ISAs, savings, or investments
  • Rental or business income
  • Plans to downsize or sell assets.

You might also want to:

• Review your National Insurance record and plug any gaps.
• Consider deferring your State Pension to boost future income.
• Contact providers early to understand deadlines.
• Consider any inheritances you may receive, but remember these are not guaranteed.

This is where tailored financial advice in Cirencester can make all the difference – especially for business owners or high earners navigating complex pensions and allowances.

A complete view of your income gives you a strong foundation for the rest of your retirement plan and helps highlight any shortfalls early enough to do something about them.

Step 5: Know your pension access options

If you have a defined contribution pension, you can usually access it from 55 (rising to 57 from 2028). But how you draw income matters, and can affect how long it lasts and how it’s taxed.

Your options:

• Drawdown – keep your pension pot invested and draw income flexibly
• Annuities – convert your pension pot into a guaranteed income for life
• Lump sum withdrawals – take all or part of it, with 25% typically tax-free
• A combination of the above.

Also consider:

• Your tax-free lump sum allowance
• Any valuable guarantees (like guaranteed annuity rates) you might lose by accessing your pension early
• Shopping around for the best annuity rates
• Letting your employer know if you’ll work beyond State Pension age – you’ll stop paying National Insurance.

Our Cirencester-based financial advisers can help you create a tax-smart withdrawal strategy that protects your lifestyle and long-term goals. Our advice is always tailored, independent, and rooted in your full financial picture.

Step 6: Consider easing into retirement

Not everyone moves from full-time work to full-time retirement overnight. More people are choosing a phased retirement – reducing hours, changing roles, or mixing part-time work with drawing pension income. Some are even opting for a mini retirement which we wrote about recently.

This can help you:

• Stretch your retirement savings by drawing on them more gradually
• Avoid an abrupt lifestyle shift, giving you time to adapt
• Maintain structure and purpose.

Semi-retirement isn’t just a lifestyle choice – it can also be a strategic move. From tax implications to pension contributions and income planning, modelling your options can show how a gradual retirement might work for you.