Consider what lifestyle you want in retirement lifestyle

Whether you regularly set yourself goals or not, for retirement it is worth considering what you want to do, and the costs involved: do you wish to travel, volunteer, start new interests, or work part-time?

Create a realistic budget. Estimate your expected income and outgoings in retirement. Consider any changes to your income and if you have everything covered between the essential costs such as mortgages and household bills to luxury items such as holidays. Plan for the long term. People are living longer, so your savings need to last for a long retirement and accounts any unplanned events, such as ill health or health care costs.

Take Stock of Your Finances

Review all pension details. Gather up-to-date statements for all your workplace and personal pensions to understand their current value, associated fees, and investment strategies. Trace old pensions. If you have had multiple jobs, you may have forgotten pension pots. Use the free GOV.UK Pension Tracing Service to locate them.

Consider getting advice to help understand what you have and identify any shortfalls.

Check your state pension: to understand how much you are entitled to and when you can claim it via the GOV.UK Check State Pension service. The full new state pension currently requires 35 qualifying years of national insurance (NI) contributions.

Boost your NI record if needed. You may be able to pay voluntary contributions to fill in any gaps in your NI record and increase your state pension amount. It is important to check this early as deadlines apply.

Maximise Your Savings and Investments

Take full advantage of your current workplace pension and employer contributions, to maximise the tax benefits. Consider the investments you have. Your pension pot is invested and has the potential to grow over the long term, potentially offering higher returns than cash savings. Regularly review your investment choices to ensure they align with your risk tolerance and goals, especially as you near retirement.

Pay down debts. Aim to clear high-interest debts like credit cards and loans before retiring or paying off mortgages to free up more income later.

Seek expert guidance

Consider a financial adviser. For personalised, tailored advice specific to your unique circumstances, an authorised financial adviser can be invaluable. Independent advisers are authorised to provide advice on the whole of market products. Financial adviser will help over the long-term planning and can manage tax implications, plan withdrawal strategies, and ensure you are on track.

Use free guidance. If you are aged 50 or over and have a defined contribution pension, you can book a free, impartial guidance session with Pension Wise, a government-backed service from Money Helper.

Beware of scams, changing trends in IT are making it harder to spot a scam, particularly when it comes to money and investments. Be vigilant about pension and investment scams. It is illegal for anyone to cold call you about your pension. The FCA offers a ‘scam smart’ service to check if a company is authentic.

Plan for the ‘New Chapter’

Retirement is a major life change. Plan how you will spend your time and maintain social connections to ensure a fulfilling post-work life.

Update legal documents. Ensure your will and nominated beneficiaries for your pension are up-to-date and reflect your wishes.

Janice Dallas is a financial planner at AC Wealth, based in Glasgow