Scott Kingsley, Senior Wealth Advisor
Most people don’t deliberately avoid planning for retirement; it just slips further down the to-do list. Life is busy, pensions feel complicated, and there’s always a quiet assumption that the government will step in.
The reality is that state support was never designed to provide a full retirement income, and without your own plan, the gap between expectation and reality can be stark.
I see it all too often: intelligent, hardworking people who have spent decades building careers, families, and homes, but very little time thinking about how their future income will actually look when the salary stops. It’s not about blame, it’s human nature.
But there comes a point where burying your head in the sand isn’t just risky, it’s unfair on your future self.
The truth is simple: retirement is not something you drift into. It’s something you build.
Let’s start with what many people rely on: the state pension. In the UK, the full new state pension currently pays £11,973 per year (2025/26 figures). That’s £230.25/week. You typically need 35 qualifying years of NI contributions for the full amount, and at least 10 years to get anything at all. If you’re a couple who both qualify fully, you’re looking at just under £24,000 a year between you.
It is payable worldwide, but annual increases only apply in the EEA, Switzerland, or in countries with reciprocal agreements. Retire in Thailand or Australia, for example, and your pension will be frozen at the level first paid.
Now, can you live on that?
Of course, some do. But for most people, especially those who want even modest travel, healthcare flexibility, or to help family along the way, it falls well short. And that’s assuming you even qualify for the full amount. Many expats don’t, thanks to patchy National Insurance records or time spent abroad.
Add to this the fact that the state pension age is rising. It will reach 67 by 2028, with further reviews already considering an increase to 68. People are living longer, which is a good thing, but it stretches retirement income across more years. A man retiring at 67 today can expect to live another 18 years on average, while a woman can expect 21. That’s two decades of needing a reliable, sustainable income.
Then there’s inflation. Even at low levels, inflation quietly eats away at spending power. Healthcare, in particular, often rises much faster than general inflation. A pension that looks “enough” on paper today can feel very thin 10 or 15 years down the road.
So yes, the state pension is helpful. But it was never designed to fully fund a comfortable retirement. At best, it’s a foundation, not the house you’re going to live in.
If the state won’t cover it, what does “enough” really mean? The answer is different for everyone, but there are some common categories worth thinking about.
So, what’s the number?
Research by the Pensions and Lifetime Savings Association (PLSA, Feb 2024 update) suggests a ‘moderate’ retirement in the UK costs around £43,100 a year for a couple. A more ‘comfortable’ retirement, with more travel and flexibility, runs closer to £59,000 a year.
Those figures won’t apply perfectly to everyone, especially expats living abroad, where costs vary widely. But they give a useful benchmark: living well in retirement generally costs more than most people assume.
The bottom line is that your “number” should be personal. It’s not about averages, it’s about clarity on what you want.
This is where the conversation shifts from passive hope to active planning. If the state pension is the foundation, you need to decide how you’re going to build the rest of the structure.
For many, the workplace or personal pension is the biggest single tool. The abolition of the UK’s Lifetime Allowance means there is now more room to grow your pot without penalty. However, new allowances still apply, including the Lump Sum and Death Benefit Allowance of £1,073,100 (HMRC). Contributions also remain highly tax-efficient, especially for higher earners, who can save 40–45% tax on the way in.
But pensions don’t just need to be built, they need to be managed. That means:
One warning: if you start drawing down early, the Money Purchase Annual Allowance (MPAA) restricts how much you can contribute later, capped at £10,000 per year from 2025/26.
Beyond pensions, investments in shares, bonds, and funds provide flexibility. Dividends, interest, and capital growth can all support retirement income. Importantly, investment accounts such as ISAs provide tax-free income streams in the UK. For expats, offshore structures may also play a role.
The key principle is diversification: don’t rely on one market, one asset class, or one geography. A balanced mix gives you resilience against shocks.
Property can provide either a roof over your head or an income stream. Rental properties, holiday lets, or downsizing can all unlock value. But property comes with risks such as void periods, maintenance and illiquidity. It should never be the only basket you put your eggs in.
Savings accounts, bonds, even part-time consultancy or business income can play a role. The aim is multiple income streams that fit together like pieces of a puzzle.
Over the years, I’ve seen the same pitfalls come up again and again:
The temptation to assume “it will be fine” is strong. After all, planning for retirement means confronting the future, and that can feel overwhelming. But here’s the truth: taking control is not about fear, it’s about freedom.
When you know what income you’ll have, where it will come from, and how long it will last, you’re not just financially secure, you’re emotionally secure. You can travel, support family, and enjoy retirement without the nagging worry of whether the money will run out.
The government’s role in retirement will always be limited. Your role, however, is unlimited, because you have the ability to design, build, and protect your own financial future. And the sooner you start, the more control you’ll have.
So don’t bury your head in the sand. Pick it up, look forward, and take action. Your future self will thank you.
Retirement planning is deeply personal, but it’s also complex. Tax rules change, investment markets move, and the cost of living is rarely predictable over a 20 or 30-year retirement. Even with the best intentions, it’s easy to miss opportunities or make decisions that limit your future flexibility.
That’s where professional advice comes in. A good financial planner won’t just run the numbers, they’ll help you shape a strategy that reflects your goals, your lifestyle, and the realities of where you want to retire. They can:
Most importantly, they give you clarity and confidence. Instead of second-guessing every financial decision, you know you’ve got a plan that is both informed and adaptable.
If you’ve been putting off speaking to someone, now may be the right time. Retirement is too important to leave to chance, and getting professional help can make the difference between scraping by and living with real security and freedom.