The long road to retirement – building a sustainable plan
29 Jul 2025
Published in: Member News
Whether you are many years from retirement, or just a few, ensuring your pension plans will sustain you when the time comes requires focus, now more than ever.
Recent research indicates that 1.6 million more people are at risk of hardship in retirement compared to a year ago, due to rising living costs. This comes despite increased levels of pension savings. The research highlights low to middle-income earners, the self-employed, and younger Generation Z savers as those who are particularly facing challenges for the future.
Around half the population are aware they are not building sufficient retirement savings across all ages and income brackets. Many face a significant reduction in living standards after stopping work or will end up working longer than they’d like because they won’t be able to afford to retire comfortably.
The Long Road
It’s certainly never too early to start paying into a pension – or too late. If you’re 10 years or more away from retirement, you need to focus on maximising savings and making the most of pension tax relief, especially if you’re a higher-rate taxpayer. Where possible, and as long as attitude to risk and capacity for loss allow, ensure funds are in growth assets, such as equities, which have historically delivered higher returns over longer time periods.
During your working life, it’s easy to lose track of multiple pension pots and savings. But you can’t build a robust retirement plan without knowing what funds you have and what they are likely to be worth by your planned retirement date. This includes State pension provision, which for many people can be a sizeable chunk of retirement income. If you’re only ten years or fewer from retirement, get a forecast from gov.uk/check-state-pension. This will also confirm when it will be paid, a key date in your retirement plan.
Countdown
As you get nearer to retirement you may find that consolidating separate funds gives a clearer overview of your potential pension income. However, before making such changes, it is worth checking that you aren’t giving up valuable guarantees and looking carefully at the charges and performance of any new scheme. This can be complex, so you should take advice.
Knowing what your savings are worth is only half the picture. You also need to think about what level of income you’ll require once you stop working. The Pension and Lifetime Savings Association estimates a single person today needs £31,700 a year for a moderate standard of living (or £43,900 for a couple). Understanding what you are aiming for, and what it will cost, can help you identify shortfalls and take action, such as saving more or delaying retirement.
The Finish Line
Once you’re within five years of retirement, think about how you’ll turn your investments into income. This is the time to explore the pros and cons of drawdown, annuities or a combination of the two.
How you’ll use your pension may influence your investment strategy in the final years. If you plan to keep funds invested, you may want to remain in growth assets. But if you want to cash in or buy annuity, switching to less volatile assets to protect your funds from sudden downturns just before you retire may be advisable.
Seek advice or guidance on all your options, whether you’re a decade away or retirement is imminent. These are complex decisions, so regular reviews of your position could make all the difference.
For more information, contact the team at MHA.
About MHA
MHA, is an AIM listed company, ranked the 13th largest accountancy group in the UK and Republic of Ireland, with a turnover of £224m (FYE25), over 2000 staff, 150 partners and comprises of 22 offices across England, Scotland, Wales and Ireland plus 1 in the Cayman Islands.
MHA is an independent member firm of Baker Tilly International, the world’s 8th largest global network of independently owned and managed accountancy and business advisory firms, with revenues of $7bn and 43,515 people operating across 143 territories.*
*Based on the 2024 IAB World Survey, adjusted for 2025 revenue rate.
Risk Warnings
The value of your investment and the income from it can fall as well as rise and you may not get back the full amount you invested.
Past performance is not a reliable indicator of future performance.
Occupational pension schemes are regulated by The Pensions Regulator.
The Financial Conduct Authority does not regulate tax advice. Tax treatment varies according to individual circumstances and is subject to change.
Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
Investments do not offer the same level of capital security as deposit accounts. MHA
Wealth Disclaimer
MHA Wealth is the trading name of MHA Wealth Ltd, a company registered in England (1916615) with registered office at The Pinnacle, 150 Midsummer Boulevard, Milton Keynes, MK9 1LZ.
MHA Wealth is authorised and regulated by the Financial Conduct Authority (FCA) with registered number 143715 and is a member of the London Stock Exchange. This communication is for general information only, is a marketing communication, and is not intended to be individual investment advice, a recommendation, tax, or legal advice. The views expressed in this article are those of MHA Wealth or its staff and should not be considered as advice or a recommendation to buy, sell or hold a particular investment or product. In particular, the information provided will not address your personal circumstances, objectives, and attitude towards risk. This information represents our understanding at the time of publication of current law and HM Revenue & Customs practice. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. You are therefore recommended to seek professional regulated advice before taking any action. MHA Wealth is a member of the MHA group. Further information on the MHA group can be found at: www.mha.co.uk
MHA is an independent member of Baker Tilly International Limited, the members of which are separate and independent legal entities. Arrandco Investments Limited is the registered owner of the UK trademark for the name Baker Tilly.
The associated logo is used under licence from Baker Tilly International Limited. Further information can be found via our website: www.mha.co.uk/terms-and-conditions © 2025 MHA. All rights reserved.
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