sm130 - Flipbook - Page 11
Retirement
What I wish I’d known before I retired
Nearly a third of retirees say their standard of living is worse than before retirement
Retirement is often imagined as a chance to relax, travel and spend more
time with family and on hobbies. However, new research suggests the reality
can be more financially demanding than expected. Nearly a third (31%) of
retirees say their standard of living is now worse than before they retired,
compared with 20% who say it has improved[1].
Even modest regular contributions can benefit
from tax relief, employer contributions and
potential long-term investment growth. Reviewing
your plans at key life stages can also help you
adapt as circumstances change.
While nobody can predict exactly how long
retirement will last or what the future economy
T
he research also highlights a gap
Creating a sustainable income
between expectations and reality.
Understanding what you have is an important
Nearly one in five (17%) retirees
first step. Reviewing pension arrangements,
underestimated how much money they
including any pots accumulated with previous
would need, while 16% did not expect retirement
employers, can help you establish which resources
to last as long as it has. With people living longer,
are available and how they could support your
retirement savings may need to stretch across
retirement. This can also highlight any gaps that
several decades, making it important to consider
may need addressing before you stop work.
not only how much you save but also how those
savings will support you over time.
It is also worth considering the lifestyle you want
will look like, preparing for different scenarios
can provide greater financial confidence.
Understanding your pension, setting realistic
expectations and seeking help where needed can
all make the transition from work to retirement
easier to navigate. t
Are you planning for a
more confident retirement?
and what it may cost. Whether your priorities are
covering essential bills, travelling, helping family or
Retirement planning can feel complex,
Learning from retirement realities
spending more time on hobbies, having a realistic
particularly when it comes to deciding how much
Many retirees say they wish they had acted sooner.
picture of future spending can help shape your
you need and how to make your savings last.
Three in ten (30%) regret not saving regularly
retirement income strategy.
during their working lives, while 29% wish they had
If you are approaching retirement or would
like to review your pension and retirement plans,
started pension saving earlier. A further 16% wish
Planning for the long term
please contact us for further information and
they had planned more thoroughly, and 14% regret
How pension savings are converted into income
professional financial advice tailored to your
not making better use of pension tax benefits.
can be as important as how much has been saved.
circumstances.
However, saving consistently is not always
Combining flexible income with guaranteed
straightforward. Having children had the greatest
income, such as an annuity, could provide greater
impact on retirement savings for 15% of retirees,
certainty for essential spending, depending on
followed by divorce (10%) and redundancy
your circumstances. Seeking professional advice
(9%). Wider events, including inflation, market
will help you understand the options and their
Standard Life plc, alongside the launch of its ‘For the life we
uncertainty and the pandemic, can also disrupt
potential implications.
live’ campaign focused on retirement and financial planning.
carefully laid plans and make it harder to maintain
regular contributions.
Source data:
[1] Research conducted by the Phoenix Group for
Retirement planning should also evolve over
The supporting research comprises an Ipsos survey of 6,000
time. Regularly reviewing withdrawals, investments
UK adults conducted in June 2025 and Opinium research
and personal circumstances can help ensure
among 4,000 UK adults conducted in January 2026, with
Making savings last
your plans remain appropriate. Unexpected costs,
Building a pension is only part of the challenge.
shifting priorities and market conditions can all
Around one in eight (12%) retirees wish they had
affect how long savings need to last.
better understood how to convert their pension
both studies weighted to be nationally representative.
This article does not constitute tax, legal or financial
advice and should not be relied upon as such. It depends
savings into an income, while a similar proportion
Taking action before retirement
regret spending too much too early.
The lessons from today's retirees highlight the
be subject to change in the future. For guidance, seek
The transition from saving to spending can be
value of starting early, saving consistently and
professional advice.
particularly difficult. People may be accustomed to
understanding how pension savings will be used.
on the individual circumstances of each person and may
a regular salary, so deciding how much to withdraw
from a pension pot while ensuring it can support
them in the long term requires careful thought.
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