Planning for a secure retirement: Insights and Tips

Recent research by the Institute and Faculty of Actuaries reveals that many retirees struggle with understanding and accessing their pension savings.

In a 2025 survey, 43% of respondents took no advice or guidance at all, and only 20% used the free guidance available through the government’s Pension Wise service. Additionally, 24% of those surveyed were worried about making the wrong decision and running out of money in retirement.

Common financial planning regrets

Many retirees have regrets about their financial planning:

• 50% wished they had started thinking about their retirement finances earlier.
• 54% wished they had saved more.
• 53% regretted not starting to save earlier.
• 42% wished they had sought financial advice or guidance.

The challenge of retirement planning

Planning for retirement is challenging, especially when balancing daily expenses and unexpected costs. The recent cost-of-living crisis has made it even harder, leading to a lower standard of living in retirement for many.

Tips to boost your pension savings

1. Start early and contribute regularly: The earlier you start saving, the more time your money has to grow. Regular contributions, no matter how small, can significantly boost your pension pot over time.
2. Take advantage of employer contributions: Many UK employers match pension contributions up to a certain percentage. Ensure you contribute enough to get the full employer match.
3. Maximise tax relief: Contributing to a pension plan can provide significant tax relief. Higher-rate taxpayers can particularly benefit. For the 2025/26 tax year, you can contribute up to £60,000 each year into a pension and bring forward unused allowances from the previous three years.
4. Consider alternative savings vehicles: If you’ve used up your pension allowance, look into other long-term savings options.
5. Regularly review your pension savings and goals: Regularly review your pension plan to ensure it aligns with your retirement goals. Adjust contributions as needed, especially after life changes like a new job or salary increase.

Five steps to achieving your retirement goals

Whether retirement feels far away or is just around the corner, start planning as soon as you can. If you are already retired, sharing your knowledge with children can help to significantly improve their retirement prospects. Here are some key steps:

1. Quantify your retirement goals: Imagine your retirement lifestyle and work out how much income you’ll need. It can be very useful to create a retirement budget with your expected living costs and discretionary spending. Consider long-term care costs.
2. Track down all your pensions : Use the government’s free pension tracing service to find any lost pensions and obtain a State Pension forecast.
3. Consider consolidating pension pots: Review whether to consolidate multiple pensions for easier management. Speak with a financial adviser to decide if this is right for you.
4. Review your investments: Have you recently checked your risk profile against the funds in your pension? Your Aegon Financial Planning Manager can review your investments with us to make sure they match your risk tolerance as you approach retirement.
5. Decide How to Take Your Pension: Choose the best option for generating income based on your retirement savings. Speak to a financial adviser for guidance.