Having a retirement plan is good for you. Here’s why

Whether retirement is within sight or still a little way off, it’s important to start preparing your finances for the day when you’re no longer earning an income.

Doing so will not only help you make the most of your freedom in retirement, but could also significantly reduce your stress levels.

Recent research from Aegon reveals that:

• Nearly one in three UK adults haven’t mapped out how they’ll fund their retirement.
• Those without a plan are four times more likely to feel stressed about their long-term finances (46% v 11%).
• More than half of adults without a plan (57%) are worried they won’t have enough money to last through retirement.

The Prudential Financial 2025 Global Retirement Pulse Survey paints a similar picture:

• Although 87% of mass affluent individuals across the US, Japan, Brazil, and Mexico feel confident they’ll cover essential retirement expenses, only 32% have a written plan for retirement.
• Only 41% seek professional advice from a financial adviser.
• Only 25% have a clear retirement withdrawal strategy.

These findings are supported by the Goldman Sachs Retirement Survey & Insights 2024, which states: “Retirees who had a plan when preparing for retirement were more likely to report higher retirement savings, a better lifestyle in retirement, less stress entering retirement and were less likely to work part-time in retirement due to insufficient savings.”

Greater life expectancy means planning is more important than ever

With people living longer, it’s more crucial than ever to have a clear retirement plan and sustainable income strategy.

In the UK, the Office for National Statistics (ONS) calculates that 55-year-old men have an average life expectancy of about 84 years, while 55-year-old women can expect to live to around 87. This means your retirement could last 20 years or more.

Longer retirement horizons mean more unknown costs could arise in later life. Beyond ensuring a sustainable income, you also need to plan for potential healthcare expenses and the inevitable effects of inflation.

Hoping your savings will suffice could lead to more stress – both now and in the future.

Rather than imposing unnecessary rigidity, having a plan is simply about knowing what you have, what you’ll likely need, what you’d like to do, and revisiting it periodically.

Top tips for creating your retirement plan

Retirement planning needn’t be daunting. Even small steps could make a big difference to your confidence and peace of mind.

Here are five simple tips to help you get started:

1. Understand your current situation. Take stock of your assets, pensions, savings, and investments. Getting to grips with exactly what you have and where will help form a strong foundation for your plan.
2. Estimate your future needs. Think about the lifestyle you want in retirement and the likely costs, including housing, healthcare, travel, and hobbies. Even rough estimates could provide a clearer picture of how much you’ll need.
3. Plan for the unexpected. Life is unpredictable, and retirement can last decades, so this needs to be factored in. Be sure to account for inflation, unexpected healthcare costs, and market fluctuations.
4. Seek professional guidance. A financial planner can help turn your ideas into a practical plan, provide tax-efficient strategies, and ensure your plan adapts as circumstances change.
5. Review and adjust regularly. A retirement plan isn’t a one-off exercise. Revisit it at least once a year, or after major life events. Take the time to make sure it still aligns with your circumstances and long-term goals.

Following these steps could help you feel more confident about your financial future. Plus, having a retirement plan that works for you could reduce stress and anxiety.

How Alexander Peter can help

At Alexander Peter, we have extensive experience in advising clients on their retirement planning and are here to support you in your transition from work to retirement.

We’re here to help you clarify your goals, build a bespoke plan, and ensure you stay on track.

Instead of worrying about whether your savings will last, you can enjoy peace of mind knowing that you have a sound strategy in place.

To find out more about how we can help you plan for a stress-free retirement, please email enquiries@alexanderpeter.com or call +44 1689 493455.

Please note

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

All information is correct at the time of writing and is subject to change in the future.