What’s stopping you from retiring sooner? For many, it’s not just finances that are holding them back but their mindset too. If the excitement of retiring is also mixed with nerves, a financial plan could give you the confidence boost you need to take a step back from work.

Finances may play a role in the hesitancy to retire for some people. Yet, others are in a financial position to retire but are still worried about taking that next step. It’s easy to see why you might not want to plunge straight into retirement – it could represent a huge lifestyle change.

So, how could financial planning help you retire sooner? It may provide the confidence boost you need to start the next chapter of your life.

A retirement plan starts with setting out your goals

If you had more free time, how would you spend your days? Retirement is a great opportunity to think about what makes you happy and build a lifestyle around those activities.

Setting out how you’d like to spend your days in retirement could make the lifestyle shift seem less daunting.

For some, that might mean enjoying a slower pace of life now you don’t have to adhere to a work schedule. For others, days packed with plans could be far more appealing, so think about what works for you.

You might look forward to being able to spend more time with grandchildren during the school holidays. Or maybe you’ve got plans to transform your garden.

As well as the day-to-day lifestyle, you might want to consider one-off experiences you’d love to make part of your retirement plan too. Perhaps you’ve always wanted to go on a cruise to Alaska, take a university course, or train for a marathon – now could be the perfect time to think about the things you’ve wanted to try and simply put off or haven’t had the time to do.

While setting out your retirement lifestyle could be the nudge you need to give up work, the financial side of retirement might still be a cause of worry for some people. Fortunately, with your goals laid out, you can start to calculate how much you’d need to secure the retirement you want, and assess if you have “enough”.

Most people retire between the age of 55 and 65

According to a report from the Institute for Fiscal Studies, most people retire between the ages of 55 and 65. At age 55, 81% of men are in paid work, and this figure falls to 44% by age 65. For women, the employment rates fall from 74% to 34% over the same ages.

That means many people are retiring before the State Pension Age, which is currently 66 and gradually rising to 68. So, if you aim to retire sooner, you might need to consider how to use your assets to fund all your outgoings initially.

Even when you reach the State Pension Age, the income you receive from the State Pension often isn’t enough to meet all your expenses. In 2024/25, those entitled to the full new State Pension receive around £11,500 a year.

As a result, your retirement plan is likely to need to consider how to supplement the State Pension during retirement.

Understanding how to create a sustainable income in retirement can be challenging, and there are lots of factors you might need to consider, such as longevity and the effect of inflation on your income needs.

A financial plan that’s tailored to you and the lifestyle you want in retirement could help you assess how to create an income and how your wealth will change during your lifetime. Having a financial plan you can have confidence in could give you the freedom to really enjoy your retirement.

Contact us to talk to us about your aspirations for retirement

If you’re thinking about retirement and could benefit from a confidence boost, we’re here to help. We’ll work with you to create a financial plan that brings together your retirement aspirations and financial circumstances. Please get in touch to arrange a meeting to talk to our team.

Please note:

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

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.