Retirement planning: 7 checks to see if you’re on track

If you could retire two years earlier, would you?

Whether you’d prefer to retire two years earlier, work four days a week or have more to spend on travel, retirement planning can help you understand what you can afford. Even when you’ve been saving for years, it isn’t always easy to know whether your pension savings will support the lifestyle you want.

In May 2026, the Pensions Commission estimated that around 15 million people in the UK were saving too little for retirement.

For your own household, the more useful figures are what you’d like to spend each month and what you can expect to have coming in. These seven checks can help you bring the two together.

1. Put a monthly figure on your retirement goals

Start with what you spend today. Which bills will still be there when you stop working? Your mortgage may be paid off and the commute may disappear, but you might want to visit family more often or take a longer holiday each year. Allow for occasional costs too, such as replacing the car. If you’re planning as a couple, work out a monthly figure together, after tax and in today’s money.

2. Account for pensions from previous jobs

Think back through the places you’ve worked. Can you match each pension to a recent statement, and does your adviser have the details? An old final salary pension might promise a yearly income from a particular age. That’s a different piece of the picture from a pension pot you can draw on. If a former employer has closed or changed its name, the government’s Pension Tracing Service can help you find the scheme’s contact details.

3. Check when your State Pension will start

Your State Pension forecast on GOV.UK tells you how much you could receive, when you can claim it and whether you could increase it. If you and your partner plan to retire together, check both forecasts. There may be several years when only one State Pension is coming in. If you spot a gap in your National Insurance record, check whether filling it would increase your entitlement before paying a voluntary contribution.

4. Find out what your employer will match

If you’re still paying into a workplace pension, ask payroll one question. “Am I getting the highest employer contribution available to me?” Some employers pay in more if you increase your own contribution. Ask what the change would mean in pounds, both for your take-home pay and for the amount going into your pension each month. That makes it easier to judge what you can afford.

5. Check how you receive pension tax relief

Look at how your contributions are taken. If they come out of your pay before Income Tax under a net pay arrangement, you already receive relief at your applicable rate. If your provider adds basic-rate relief to your pot, you may be able to claim more from HMRC.

For example, an £80 payment becomes £100 in the pot. If you are a higher-rate taxpayer and the contribution qualifies for additional tax relief, you may be able to claim a further £20 from HMRC.

Scottish Income Tax rates differ. Your adviser can help you check which arrangement and rates apply to you.

6. Plan for the years before your State Pension

Suppose your household would like £2,500 a month after tax but expects £2,000 a month until a second State Pension starts. That leaves £500 a month, or £6,000 for each full year you need to cover, in today’s money.

Knowing the amount and how long you’ll need it makes the decision more manageable. You and your adviser can look at whether ISA savings, pension withdrawals or a few days’ work each month could cover it, and what each choice could leave for later.

7. Explore what a different retirement date could mean

If you’d like to finish work at 63 but have always planned around 65, raise it with your Continuum adviser.

They can help you look at how you’d cover those extra two years, what retiring earlier could mean for your income later on and whether reducing your hours first might suit you.

Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means tested benefits.

If your retirement plans have changed, or you’d like to review your retirement planning and check you’re still on track, speak to your Continuum adviser today.

Millions face a retirement shortfall – Money Week

This article is intended for general guidance only and is based on the opinion of Continuum it does not constitute financial advice. Individual circumstances vary, and you should consider seeking advice from a regulated financial adviser before making any decisions about your retirement planning.

The value of an investment can go down as well as up and you may get back less than you invested. When investing Capital is at risk.

A pension is a long-term investment; the fund value can go down as well as up and this can impact the level of pension benefits available. Pension Income could also be affected by interest rates at the time benefits are taken. Pension savings are at risk of being eroded by inflation.

The tax treatment of pensions in general and tax implications of pension withdrawals will be based on individual circumstances, tax legislation and regulation, which are subject to change in the future.

The Financial Conduct Authority does not regulate taxation advice.