Preparing for retirement: a decade-by-decade guide

The UK population is ageing steadily, with more people living into their 90s, according to recent government figures.

This trend, while positive, makes careful retirement planning perhaps more important, and challenging, than ever for your employees.  

While it might seem daunting to plan for retirement – especially when it’s decades away – there are simple, practical steps that your employees can take at every stage of life to build long-term financial confidence and security. 

Here’s a breakdown by age:

In their 20s: start early to maximise savings later 

The opportunity for those who start investing in their pension early is huge. If your employees’ time horizon is 50, 60 years, the potential for returns to compound is significant. Of course, saving might not be a priority when they’re just starting work, but it can make a big difference. 

Delaying saving in their 20s by as little as five years can reduce a retirement fund by tens of thousands of pounds.* So, if your employees’ finances allow, it’s worth them considering their retirement savings alongside other financial goals, such as building an emergency fund for a rainy day, managing any debts they may have, or saving to buy a first home – which, admittedly, might seem a bit more immediate. 

And, of course, if their employer offers matched contributions, it makes sense for them to take as much advantage as possible. 

In their 30s: can they afford to save more as their career gets underway? 

Employees' 30s are a powerful decade for building long-term wealth. Their income may well increase during this period, so it’s worth them considering gradually increasing their pension contributions. 

If they can time contribution increases for when a pay rise kicks in, it could be argued that individuals won’t miss what they never had in their take-home pay. Their future self, however, will notice the difference. 

Pension contributions are also highly tax-efficient, so the impact on employees’ monthly pay might not be as big as they think.  

It can also be worth employees looking at other investments, such as Stocks and Shares ISAs, to help diversify their savings and provide flexible access. 

Another factor worth employees considering is the skills they need to adapt to changes in the job markets. Investing in themselves at this age could prove really beneficial if their working life still has several decades to run. 

In their 40s: think about how and when they wish to retire, and what income they might need  

Employees in their 40s have an opportune time to take stock. It’s a good rule of thumb for them to aim for a pot of about three times their annual salary in their pension at the age of 40. But they shouldn’t panic if they’re not there – they still have plenty of time. Employees should think about when they’d like to retire, and remember: with longer lifetimes, they could be looking at a retirement of 30 years or more in which to make their pension last.
   
It’s also worth employees making sure they have sight of all the pensions they’ve built up so far. A pension tracing tool can help. If they have a Standard Life workplace scheme, employees will be able to use our Pension Finder tool, available through Money Mindset.**

Employees can then use a pension calculator to check whether they’re on track for their expected standard of living in retirement. Pensions UK’s Retirement Living Standards are a good place to start. These indicate how much employees might need for a ‘minimum’, ‘moderate’, or ‘comfortable’ retirement.  

More generally, this is also a good time for employees to keep a close eye on their investments and ensure they’re aligned with their attitude to risk. 

In their 50s: are they on track for their target retirement age and income? 

Planning is key for employees in their 50s. So they should continue to keep an eye on their savings and referring to pension calculators. If they’re behind and their situation allows, employees could consider increasing contributions while they’re likely towards the peak of their earning potential. 

Employees of this age are also entering the ‘Retirement Risk Zone’: the five-to-ten years before retirement when poor market performance can have a big impact. Quite a few default pension products are designed to try and protect against market risk in the lead up to retirement, they do this by starting to move some of your employees' funds into what are classed as less risky assets. For employees who are self-investing, they should protect themselves by making sure their investments match their attitudes to risk and planned retirement date.

Employees should also start to think about how they want to take their savings, whether through drawdown, an annuity, lump sums or a combination of all. If possible, they should consider financial advice for a tailored and personalised look at what might work for them. 

It’s also worth employees checking their State Pension forecast to ensure their National Insurance record is complete and accurate – because they don’t want any nasty surprises when they reach State Pension age. 

In their 60s: time for transition and how they might want to retire

This is a time many employees look to start winding down their working lives. If employees still enjoy work, it can be worth them asking whether their job could be done on reduced hours. Keeping some income coming in can be really helpful in preparing for what could be a long retirement, and still allows them to make the most of their time. 

Employees should also regularly review their withdrawal strategy to ensure it remains sustainable over time. Retirement isn’t the finish line, but a dynamic phase that requires ongoing attention and adjustment. Employees’ lifestyle and needs will likely evolve as they age, so they should stay proactive and flexible. Whether they are fully retired or phasing out of work, having a clear structure will help employees navigate these decades with confidence. 

The information here is based on our understanding in September 2025.

The information here is not financial advice. If you're unsure, you should speak to a financial adviser.

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

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

*assumes starting salary £25K at 22 and retiring at 66, 8% combined contribution (employer/employee), 3.5% salary growth per year, and 5% a year investment growth. Figures are not reduced to take effect of inflation. Annual Management Charge of 1% assumed. The figures are an illustration and are not guaranteed. Earning limits not applied.

**Money Mindset is provided in partnership with Moneyhub Financial Technology Limited