Retirement: It’s Not Just About Stopping Work

One of the most common questions I hear is:

“How much do I actually need to retire comfortably in the UK?”

It’s a simple question — but the answer depends on your lifestyle, your income needs, and how long your retirement might last. With people often living 20–30 years after finishing work, planning ahead is essential.

In this article, we’ll look at:

What Does “Comfortable” Mean in Retirement?

The Pensions and Lifetime Savings Association (PLSA) has created clear benchmarks to show what kind of lifestyle different income levels provide in retirement(source: PLSA Retirement Living Standards):

Minimum – Covers essentials like food, heating, and some social activities. (£13,400 single / £21,600 couple per year)
Moderate – More financial security and flexibility: one foreign holiday a year, regular meals out, running a car. (£31,700 single / £43,900 couple per year)
Comfortable – Greater freedom: two holidays a year, more leisure spending, generous food/clothing budgets. (£43,900 single / £60,600 couple per year)

👉 Most people aspire to at least the moderate level — ideally the comfortable one.

How Far Does a £250k Pension Pot Go?

If drawn at 4% per year, a £250k pot might provide around £10,000 annually before tax. Add in one full State Pension and a single person’s income is £23,973

That’s well below the Moderate benchmark — closer to halfway between Minimum and Moderate.

For a couple, their total with a £250k pot is £33,946.

That still falls short of Moderate — meaning even as a couple, they’d need to cut back compared to the lifestyle many aspire to.

Is £500k Enough to Retire Comfortably?

A £500k pot provides around £20,000 per year at 4%. With the State Pension, a single person would have £31,973 total.

That’s just enough to meet Moderate — but still below Comfortable.

For couples (two State Pensions), the household income would be ~£43,946.

That’s bang on the Moderate benchmark for couples — but again, it does not reach Comfortable.

What Lifestyle Does £1 Million Provide?

A £1m pot provides around £40,000 per year at 4%. Add one State Pension and a single retiree has ~£51,973.

That’s well above Comfortable — giving room for holidays, hobbies, and a safety margin.

For a couple with two State Pensions, the total reaches ~£63,946.

That’s above the Comfortable benchmark for couples, creating flexibility for rising costs, care needs, or helping family.

Check Your State Pension

The figures above assume the full new State Pension (£11,973 each per year in 2025/26).

• For singles, we’ve added one State Pension. For couples, we’ve assumed both will receive full state pensions giving a combined ~£23,946 a year.

👉 This is why couples can often reach the comfortable lifestyle benchmark with a lower pension pot than they might expect — provided both partners have a full National Insurance record.

💡 Tip: Not sure how much State Pension you’ll actually get? You can check your forecast online in minutes.

👉 Visit the official GOV.UK service here: Check your State Pension forecast

This shows:

Knowing this number is a vital step in building your retirement plan — because it sets the baseline for your guaranteed income.

Why Averages Can Be Misleading

These examples are helpful, but they’re just that — examples.

The reality is:

That’s why personalised retirement planning is so powerful. It takes your pensions, savings, lifestyle goals, and risks — then shows if you’re on track.

The Bottom Line

A “comfortable” retirement in the UK generally means aiming for £43,900 per year for singles or £60,600 for couples (PLSA 2025).

But your retirement isn’t about averages. It’s about your vision, your lifestyle, and your money and making sure it lasts as long as you do.

✅ Next Steps

📍 Book your free retirement income review and see if you’re on track.
👉 Book your Retirement Clarity Call

📥 Download our free Retirement Planning Checklist and start spotting the gaps today.
👉 Get the Checklist

Please note: This article is for information purposes and does not constitute financial advice, which should be tailored to your individual circumstances. The information is intended for retail clients only. 

The guidance provided is subject to the UK regulatory regime and is primarily aimed at consumers in the UK. Please be aware that the Financial Conduct Authority (FCA) does not regulate certain aspects of cash flow, estate, or tax planning, or trust advice. 

The value of pensions and any income they generate can decrease as well as increase. You may not recover the full amount invested. A pension is a long-term investment, and its value is not guaranteed. Any advice or considerations are personal to each individual’s situation. 

A pension is a long-term investment; the value of your investment and income from it may fluctuate. Your eventual income may depend on the size of the fund at retirement, future interest rates, and tax legislation.

Your pension income may also be affected by interest rates when you claim your benefits. The tax implications of pension withdrawals will depend on your personal circumstances, tax laws, and regulations, which may change in the future.

It happens in an instant.

One partner says, “I want to retire at 60.”

The other partner’s coffee cup pauses halfway to their lips. Their eyes widen. A look of genuine surprise, almost shock, crosses their face.

“Sixty? But I thought we’d both work until 65…”

The room goes quiet. I can feel the shift in energy as they both realise something profound: they’ve been planning separate futures. I’ve witnessed this moment many times in client meetings.

Couples who have shared decades of life together, raising children, managing a mortgage, and planning holidays, suddenly discover they’ve never had a real conversation about when they’ll stop working. The silence that follows speaks volumes.

People assume these conversations are avoided due to financial concerns or differing attitudes towards risk. But more often, it’s something deeper and more fixable. They simply haven’t talked about the future.

The Cashflow Breakthrough

Most people think cashflow planning is just spreadsheets and figures. But often, it’s actually relationship therapy in disguise. When I show a couple their first cashflow projection, something shifts. The abstract becomes tangible. For the first time, they can see how today’s choices shape their future and whether they’re on the right path.

Even more crucially, they can compare options side by side.

The Flat-Line Fallacy

But here’s where most retirement planning goes wrong.

Traditional retirement plans often assume people will spend the same amount each year for the rest of their lives. But life doesn’t work that way.

We break retirement into three distinct phases:

Active Retirement – The go-go years: full of travel, hobbies, and new experiences. Often the most expensive stage.
Mid Retirement – A steadier pace of life. Spending typically eases, and time might be spent with grandchildren or volunteering.
Later Retirement – Later years may bring rising healthcare or care-related costs, while lifestyle spending tends to decrease.

When couples see this more realistic framework, a lightbulb goes off.

Retirement isn’t one long chapter; it’s a series of seasons.

And that realisation makes it feel achievable. It opens the door to dreaming.

From Avoidance to Connection

And that’s when the magic happens.

This is the moment when the numbers give way to meaning. They stop avoiding the topic. They start imagining their future together. Bucket lists are created. Hidden dreams emerge. The conversation shifts from limitations to possibilities. They’re not just planning retirement. They’re reconnecting.

It’s Not About Risk. It’s About Clarity.

You might expect the biggest hurdle to be different risk tolerances. But that’s not what we see.

What we see more often isn’t about risk at all, it’s about confidence.

Usually, one partner feels less certain about the future. The projections bring clarity. The phased retirement model builds belief.

The breakthrough comes when they realise their dream life is actually sustainable. And if not, they know what levers to adjust, retire a year later, save a bit more, or downsize sooner.

It’s not about restriction. It’s about control.

What Financial Freedom Really Means

People talk about “peace of mind”, but what does that actually mean?

To us, it’s this:

Knowing money won’t hold you back.

It means being able to say, “Yes, this works. We can do this.”

And when couples reach that point, everything changes. Financial decisions become less stressful. Conversations about money become collaborative, not confrontational.

They move forward with confidence, together.

Starting the Conversation

If any of this sounds familiar, here’s the simplest next step:

Start the conversation.

Ask yourselves:

You don’t need all the answers. You just need to start.

We take those conversations and build a plan around them, one that connects your life goals to your financial reality.

Because it’s not just about retirement, it’s about removing uncertainty so you can move forward without fear.

Ready to Start Your Conversation?

Here’s the one question every couple should ask:

Do we know what our future together looks like after work?

If that question sparks surprise or uncertainty, you’re not alone. Most couples haven’t had that conversation yet.

But you don’t have to navigate this alone, a Financial Planner can help you:

• The conversation that once felt impossible becomes the foundation for everything that follows.

There’s a moment I notice in almost every retirement planning discussion: 

a pause, a smile, a quiet moment: “Ah… now I understand.” 

That moment usually occurs when we look at a chart. 

Not a spreadsheet. Not a thick report.

Just one clear image that reveals the shape of someone’s financial future. It’s often at that point that numbers transform into something more powerful: Clarity.

The Magic of a Simple Chart

Retirement planning doesn’t have to feel daunting. At its best, it provides clarity, like unfolding a map that reveals exactly where you are and where you’re heading.

Take James, a 50-year-old engineer contemplating whether retiring at 60 is achievable.

This single chart brought James’s future into focus:

It shares a comforting story:

✅ James can comfortably step back from work at 60

✅ His mortgage is cleared at retirement

✅ His income flows from a smart blend of sources

✅ Even in later life, his spending is fully covered

This kind of visual clarity helps people move from guessing… to knowing. From hesitation… to confidence.

Why Charts Matter

We make better decisions when we can see what’s possible.

Charts give you what a pension statement never will: Context.

A well-built financial chart can show you:

•  They turn big questions into confident decisions.

Why Charts Are Your Best Friend in Retirement Planning

That’s what most people want to know.

They’ve worked hard. Saved diligently. Built enough, probably.
But without context, it’s hard to feel certain.

A clear chart like James’s helps you stop guessing, and start shaping the life you really want.

Want to See Your Picture?

If retirement still feels like a blur — or you’re wondering how close (or far) you really are…

It starts with a conversation.

And just maybe, one chart that changes everything.

👇 Book a free Retirement Clarity Call 👇

Why standing still may be costing more than you think

We often think of retirement planning as something that happens “later.”

But here’s the quiet reality: Doing nothing is still a decision.
And over time, it comes with costs, not all of them financial.

Let’s explore what inaction might be costing you.

1. Missed Opportunities to Reduce Tax

Every tax year that slips by unused is a missed opportunity. Unused allowances. Unclaimed reliefs. Poor sequencing of income sources.

When you don’t have a joined-up plan that includes pensions, ISAs, capital gains, and even gifting, you’re often paying more tax than necessary, now and in the future.

Inaction can quietly erode your wealth. And the irony? It’s usually avoidable with the right forward thinking.

2. Uncertainty That Creeps Into Decision-Making

Without a clear picture of your retirement path, it’s easy to:

Financial uncertainty leads to life hesitation.

• And the longer it lasts, the heavier it starts to feel.

3. Mental Load (That You May Not Realise You’re Carrying)

Many of my clients don’t come to me in crisis. They come because they’ve been carrying quiet, persistent questions:

• “Are we doing the right things?”
• “Could we be doing more?”
• “What are we missing?”
• “How soon could we slow down?”

It’s not panic — it’s weight.
Planning brings relief, not just returns. Clarity has emotional value too.

4. Less Flexibility Later

The longer you delay planning, the fewer levers you have left to pull.

Early planning isn’t about locking you in, it’s about keeping doors open.

So, What Can You Do?

You don’t need to overhaul your finances overnight. But you do need to face the conversation.

That’s where real peace of mind begins.

Take the First Step

If you’re wondering what your next move should be, I’ve created a simple resource to help:

👉 [Download the free Retirement Clarity Checklist]
(A practical checklist to help you review where you are and what’s missing)

Or, if you’d rather talk it through:

📞 [Book a free 30-minute Clarity Call with me]
No jargon. No pressure. Just real answers to the questions you’ve been carrying.

Because doing nothing might feel safe today, but it rarely leads to freedom tomorrow.

When most people think about retirement, they imagine a finish line. One day you work, the next day you don’t. But in reality, retirement is rarely that simple.

The truth is, there are many ways to approach this major life transition, and the right one depends entirely on your goals, resources, and lifestyle ambitions.

Here are five retirement strategies I regularly help clients model to figure out what works best for them.

1. The Traditional Full Stop

This is the classic scenario: you work full-time until a set retirement age (say 60 or 65) and then stop working entirely. From that point on, you rely on pensions, savings, and other assets to fund your lifestyle.

Why it works:

What we look at:

Client Story: Emma, a solicitor in her early 60s, wanted a clear line between her working life and retirement. We mapped her income, expenses, and future plans, showing her that she could afford to stop completely at 63 and even take a celebratory trip to New Zealand with her sister.

2. Phased Retirement

Instead of going cold turkey, some clients prefer to gradually reduce their hours or transition to part-time work for a few years.

Why it works:

What we look at:

Client Story: Mark, a business consultant, transitioned to working three days a week from the age of 58. We showed how this additional income allowed him to delay pension drawdown, enhancing his long-term financial security. He now enjoys extended weekends and is finally training for a charity cycle tour.

3. Early Retirement

Many clients come to me wondering whether they can afford to retire earlier than expected, often in their mid-50s.

Why it works:

What we look at:

Client Story: Sarah, 56, was tired of the corporate treadmill. We crunched the numbers and showed that with a few adjustments, she could comfortably retire at 57 and take on part-time volunteer work. Her only regret? Not asking the question sooner.

4. Lifestyle First

This approach begins with your ideal lifestyle and works backwards. Instead of asking, “When can I retire?” we ask: “What does retirement need to fund?”

Why it works:

What we look at:

Client Story: Alan and Rachel wanted to spend six months a year abroad post-retirement. By modelling this lifestyle-first approach, we built a plan that made it happen without compromising their security. They now divide their time between Devon and Spain.

5. Gifting While Living

For many people, retirement isn’t just about stopping work; it’s about helping the next generation. This might mean helping kids onto the property ladder, supporting grandchildren, or donating to charity.

Why it works:

What we look at:

Client Story: David and Lisa wanted to help their daughter buy her first home but were worried about compromising their own retirement. A detailed gifting plan showed them they could provide support now, reduce inheritance tax later, and still finance their future holidays.

Final Thoughts

Every retirement looks a little different. The key isn’t to copy someone else’s strategy; it’s to understand what you want, model it clearly, and make confident decisions with the numbers in front of you.

👇 Ready to Find Your Strategy?

Whether you’re five years from retirement or just starting to ask the question, clarity starts with a conversation.

✅ We discuss your options in plain English (and with a few helpful charts)

✅ We talk through trade-offs and timelines

✅ And we give you the confidence to move forward without pressure

📅 Book a free clarity meeting: https://calendly.com/tom-purplefoxfp/45min

No jargon. No sales pitch. Just smart planning tailored to you.

Retirement should be a time of freedom, not fear. Yet one question comes up more than any other when I meet with clients aged 40 to 60:

“Can I afford to retire?”

It’s a simple question but not an easy one. That’s because it’s not just about money, it’s about confidence, clarity, and knowing what you want from life after work. Also, let’s be honest, it’s about whether you can sip coffee in your dressing gown at 10am on a Tuesday without guilt or tee off midweek without having to pull a sickie.

In this blog, I’ll walk you through how I help people move from uncertainty to clarity using structured, visual planning and how you can begin answering this question for yourself.

1. Start With Your Vision

Before we talk about numbers, we need to talk about you. What does retirement mean to you?

This isn’t fluff. Your goals shape the entire financial plan. Retirement isn’t just about “having enough”; it’s about funding the life you want. (Yes, including that dream campervan, a few golf trips to Portugal, or finally joining that cycling club you’ve followed on Strava for years.)

2. Map Your Spending Needs

Once we know what you want to do, we can work out what it will cost. We look at:

• This becomes your personal retirement budget. It’s the foundation of everything that follows. And no, Amazon Prime and Netflix aren’t technically essential, but let’s be realistic. Also, a new road bike every few years? Let’s call that an investment in health.

3. Assess Your Income Sources

Now we look at the money you’ll have coming in:

We also consider when these income sources become available and how tax-efficient they are. Because nothing kills retirement vibes like a surprise tax bill.

4. Build a Cashflow Model

Here’s where the magic happens. We take all the above and build a timeline that shows how your money will flow in and out over the coming decades.

The goal? To visually demonstrate:

Clients often tell me this is the first time they’ve felt like they can see their future clearly. It’s like Google Maps for your money, just fewer roundabouts (and more chances to budget for a golf holiday or a summer of sportive events).

5. Stress-Test the Plan

No plan is complete without a few curveballs. We look at questions like:

We model different scenarios to ensure your plan can adapt if life doesn’t go exactly as expected. (Spoiler: it rarely does.)

So, Can You Afford to Retire?

If you’re asking the question, you’re not alone. But here’s the truth:

It’s not about having a “magic number.” It’s about understanding what you need, what you have, and how to bridge the gap with confidence.

The good news? With the right plan in place, many people realise they can retire sooner than they thought. And yes, that might mean more time in your garden, on your bike, or finally getting your handicap down and less time in team meetings that could have been emails.

Want help answering this question for yourself?

You can download my free retirement checklist or book a no-obligation clarity call at https://calendly.com/tom-purplefoxfp/45min

As I mentioned in a previous blog, financial planning is ultimately about ensuring you don’t reach the end of your life with regrets.

Because by then, it’s too late to do anything about it, and missed opportunities can’t be reclaimed.

A bucket list is a brilliant (and hopefully fun!) way to make sure you live life to the fullest. After all, as far as we know, we only get one shot at this!

Why You Need a Bucket List

Start by writing down everything you’d love to do or experience in your lifetime. Then, estimate the cost and set yourself a timescale – otherwise, you might never get around to it.

By factoring these goals into your financial planning and cashflow projections, you can structure your wealth to fund your dreams as and when you’re ready to tick them off.

Your bucket list doesn’t have to be about luxury or extravagance. While things like seeing the Northern Lights or travelling in a campervan tend to be popular, your list might include helping your children with a house deposit or covering wedding costs.

Experiences Over Things

Research shows that spending money on experiences is generally more fulfilling than spending it on material things. Creating incredible memories will enrich your later years far more than simply accumulating ‘stuff’.

Why You Need a Bucket List Before You Retire

Here’s an example of why planning ahead is so important:

Imagine your dream retirement includes a once in a lifetime world cruise. Your cashflow projections might reveal that if you retire a year early, you won’t be able to afford it, but by working just one more year, that dream trip becomes possible.

If you retire first and then decide on your bucket list, you might realise too late that some of your ambitions are financially out of reach. Worse still, you might regret retiring when you did, but by then, returning to work may not be an option.

Knowing how your bucket list fits into your financial plan gives you informed choices. What’s more important to you, retiring early or making that dream cruise happen?

If you choose to work an extra year, you’ll know exactly why you’re doing it and having a clear purpose can make that final stretch far more rewarding (and much less stressful).

No Regrets – Start Planning Today

A bucket list isn’t just a wish list, it’s an essential part of financial planning. Don’t wait until it’s too late, plan now to make your dreams a reality.

Do you have a bucket list? Can you afford to live your dreams? 

Find out how well-prepared you are with our quick two-minute Financial Planning Scorecard and take the first step towards living life without regrets!

Many people focus on investing for the highest possible returns – often encouraged by the financial services industry, as it helps them sell more products. However, true financial planning isn’t just about maximising returns – it’s about making sure your money supports your lifestyle.

Start with an Emergency Fund

Textbooks suggest keeping three to six months’ worth of income in an easy-access account for emergencies. However, in reality, the right amount is what makes you feel comfortable while also covering any unexpected costs that insurance doesn’t.

For those still working, I’d suggest at least six months’ salary as a safety net. This ensures you can continue funding your lifestyle should you lose your job, giving you a comfortable window to find new employment without financial stress.

Plan for Short-Term Expenses

Once your emergency fund is in place, think about any larger expenses you might have in the next five years – perhaps a big holiday, home renovations, or buying a new car.

As this money will be needed sooner rather than later, it should be invested with low risk but possibly in accounts with a longer notice period to secure a better return than a standard savings account.

Invest for the Long Term

For money that won’t be needed for many years – such as funding retirement or ticking off bucket list experiences – investments can be directed towards higher potential returns, depending on your personal risk tolerance.

Planning for Major Life Events

You may also have specific financial goals, such as:

For these, more detailed planning is needed, considering:

Once you have a target amount and an expected investment return, you can calculate how much you need to save to reach your goal.

If you already have a fixed budget for saving, you can instead calculate the returns required – and therefore, the level of risk you may need to take with your investments.

How confident are you about your financial planning?

Find out in just two minutes with our quick ScoreMy Financial Planning Scorecard see how well-prepared you really are!

Once you have a clear picture of the lifestyle you desire, the next step is determining how to finance it. This is where Lifestyle Financial Planning becomes essential.

Many individuals assume that financial planning revolves solely around pensions, investments, and life insurance, but that’s largely because the financial services industry wants you to believe that, as it helps them sell more products.

The Chartered Institute for Securities and Investments defines financial planning as:

“A professional service for individuals, their families and businesses, who require objective assistance in organising their finances to more readily achieve their financial and lifestyle objectives.”

At its core, financial planning is about ensuring you do not look back later in life with regret.

• I’ve come across websites promising a ‘financial plan’ after just a quick chat. But the reality is, a well-crafted financial plan takes careful analysis, detailed calculations, and realistic assumptions.

• Good financial planning isn’t just about numbers – it’s about making sure your money helps you live the life you want, both now and in the future.

Want to see how well your financial planning is shaping up?

Take our quick two minute Financial Planning Scorecard and get an instant snapshot of your progress!

Do you know how much is really enough to live the life you want, without worrying about running out of money?

This is one of the biggest questions financial planning can answer – and having that answer could change everything.

We see so many people working longer than they need to, simply because they don’t know when enough is enough.

Now, I’m not saying working past retirement is a bad thing (the research actually says it’s quite good for you!), but lots of people keep at it when they’d rather not, thinking they need to pile up as much as possible before they can finally retire.

So, when can you stop doing the things you don’t want to do and start focusing on the things you do want to do?

Knowing how much is enough can help answer the most common planning questions, such as:

By analysing your assets, liabilities, income, expenditure and understanding your desired lifestyle – and by doing financial planning based around a cashflow model – it is possible to calculate the answer to the essential question.

If you do not know how much is enough, you do not have a financial plan.

Do you know how much is enough for you? How confident are you about your financial planning?

Find out in just two minutes with our quick and easy Financial Planning Scorecard and see how well prepared you are for the future!