How to plan for your retirement

We all know we’re supposed to plan ahead for retirement – but how exactly? We’re covering simple steps you could take to feel better prepared.

When it comes to your pension, a little planning goes a long way. Whether you’re nearing retirement, just starting out in your career, or somewhere in between, taking some time to plan for the future could help you build confidence in your retirement plans.

Planning for retirement doesn’t need to be complicated – we’ve broken things down into some easy steps to get you started.

1. Think about your ideal retirement

People often wonder, “how much money should I have in my pension?” The desire for clarity is understandable, but unfortunately, there’s no one-size-fits-all amount. All of us have different circumstances and motivations, meaning what counts as ‘enough’ differs from person to person. 

Usually when we save up our money, it's for a specific purpose – a new home, a dream holiday, a safety net. The goal comes first, and the numbers follow. Pension savings can feel more abstract – we don’t often picture what our money will go towards.

That’s why it can be helpful to consider the type of life you’d like to live in retirement. As a starting point, you could reflect on the following questions:

•    If I had more free time, how would I use it?
•    What experiences would I like to have during my lifetime?
•    Is maintaining my current lifestyle important to me, or would I be comfortable with less?

2. Understand how much you might need

Now that you understand the kind of lifestyle you’re aiming for, you can start to calculate a target level of annual income. Remember, you don’t need to arrive at an exact figure – a rough target is just fine.

As you’d expect, different lifestyles require different levels of income. Provided you’re eligible, you’ll get some of your retirement income from the State Pension – but that may not be enough to cover much more than your basic needs. 

The Retirement Living Standards explain how much annual income a household typically requires for three levels of living standards: minimum, moderate, and comfortable.

3. Check whether you’re on track

Pension calculators, like this one from Standard Life, can show how your current contributions compare to your target income level. 

This can help you understand whether you’re on track. If there’s a gap, you can find out how increasing your contributions could impact your pension income. You might be surprised by the difference even small changes can make.

Make sure to check any assumptions you have about your pension, including:
•    Your current pension value 
•    The amount you and your employer contribute 
•    Your projected retirement age 

You can easily find this information by logging into your Standard Life account online or through the app (you’ll need to register for online servicing first). While you’re there, take a quick look at your personal details and beneficiaries, as they may have changed since you last checked.

4. Review all your retirement income

Your retirement income won’t necessarily come from a single pension pot. Depending on your circumstances, you could have multiple sources of income, such as:

•    The State Pension
•    A self-invested personal pension (SIPP)
•    ISA and cash savings 
•    Selling a property
•    Other investments 

In addition, you may have pension pots from other employers. If you’re not sure, learn more about tracking down lost pensions.

Factoring all your savings, investments and other income sources into your planning can give a more complete view of your retirement finances. 

5. Understand your retirement options

Although it might not be time to start taking your pension, it’s still worth thinking about your options well ahead of retirement.

You’re likely aware that you can’t access the State Pension until you reach State Pension age. 

What you might not know is that most people with a defined contribution pension can access it from age 55 (rising to 57 from 6 April 2028). You don’t have to start taking your pension at this age, and leaving it invested for longer could give it more time to grow ahead of retirement.

When it’s time, you’ll have options on how you take your pension, including: 
•    Flexible access to your savings: You withdraw up to 25% of your pension tax free and move the remaining amount into a drawdown investment account that you can access as needed. 

•    A series of lump sums: Instead of taking out a 25% tax-free lump sum, you keep your money invested in your pension pot and withdraw funds as needed. 25% of each withdrawal is tax free.

•    A regular, guaranteed income: You use some or all of your pension value to purchase a guaranteed income, known as an annuity, either for life or for a fixed number of years. Usually, you’ll have the option to take 25% of your pension as a tax-free lump sum before buying your annuity. 

Each year, the taxable part of your pension income, plus any other taxable income you receive, is used to calculate the rate of Income Tax you need to pay.

6. Take advantage of extra support

Planning for retirement can feel overwhelming, but you don’t have to do it alone. 

Retirement tools like our pension calculator and retirement calculator can help you understand whether you’re on track. Head over to the retirement hub to explore all the resources available to you.

MoneyHelper is a free, government-backed service that provides guidance about money matters including pensions and retirement planning. 

Or, if you’re feeling uncertain and need more tailored advice, Unbiased can help you find FCA regulated financial advisers.You’ll also find lots of helpful information here on MoneyPlus. 

A step in the right direction

Retirement planning isn't about having all the answers today. It's about taking small, manageable steps that help you build a clearer picture of the future you want. Whether that's understanding your pension savings, reviewing your retirement goals, or exploring the support available, every action can help you feel more confident about what's ahead.

If you're looking for a simple next step, log into your account or register for online servicing. Just log into your Standard Life account online or through the app, or register for online servicing to get started. You'll be able to view your pension value, check your retirement age, and explore planning tools designed to help you make informed decisions about your future.

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The information here is based on our understanding in September 2026 and shouldn’t be taken as financial advice.

A pension plan is an investment. Its value can go down as well as up and could be worth less than was paid in.

Your own personal circumstances, including where you live in the UK, will have an impact on the tax you pay. Laws and tax rules may change in the future.

Standard Life accepts no responsibility for information on external websites. These are provided for general information.