Retirement increasingly means a multitude of different things to different people.

A ‘cliff-edge’ retirement, ceasing work completely and starting to draw on your pension, is still the way for many. Others choose a ‘glide path’ to that kind of retirement. Many opt to slow down but continue to work, or choose to work other than full time, in either the same or a different occupation. The latter two paths reduce the amount that needs to be drawn from financial assets such as pensions and helps to preserve them longer.

With that in mind, the starting point for planning your retirement is to decide what retirement looks like for you and, with the help of a financial adviser, calculate how much it will take to deliver that retirement. Based on a clear assessment of what you already have you will then be able to determine how much you need to invest, over what period, based on appropriate assumptions of what you’ll need to reach your target at the time you anticipate starting to draw down on your financial capital. Of course, this pathway to your target retirement fund will need regular review to take account of changing goals, actual investment performance and taxation changes, to name a few. We have put together a complete guide to ensuring that you make an informed decision and feel reassured that your goals are within reach.

You need to keep track of all old schemes because although often referred to as ‘frozen’ you will remain invested, and you will be able to access them from the age of 55 (due to increase to 57 from 6 April 2028).

Important information

This guide is provided strictly for your general consideration only and represents our understanding of the law and HM Revenue & Customs practice as at 1 December 2022, including proposals in the Finance Bill 2022. The guide is not intended to (and does not) represent advice. It is essential that no action is taken or refrained from being taken based on this guide alone. Specialist advice (as referred to throughout the guide) is essential. Accordingly, neither Investec Wealth & Investment (UK) nor any of its officers, employees or contractors can accept any responsibility for any loss occasioned as a result of any such action or inaction.

The value of tax reliefs depends on your individual circumstances. Tax laws can change. The Financial Conduct Authority does not regulate tax, Will or trust advice. The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.