How long do you think you’re going to live?

The average lifespan in Europe is 78.4 years for men and 83.8 years for women.

How long do you want to keep working?

If you want to keep a decent lifestyle after whatever age you choose to retire you’re going to need a pension.

If you don’t already have this covered here’s what you need to know (information supplied by a Drive Member)

It’s never too early to start saving for your pension. Planning your retirement early is likely to result in more options when you get there. The ‘Retirement Living Standards’ is a great source of information and aims to give people an idea of what their retirement lifestyle might look like:

The Retirement Living Standards suggest the following retirement incomes:

Minimum            – Single £9339.20 / Couple £18,678.40

Moderate           – Single £20,000 / Couple £27,000

Comfortable      – Single £33,000 / Couple £42,000

Data sourced from Retirement Living Standards, (2021), Pensions and Lifetime Savings Association

If you’re self-employed, you might want to consider setting up a personal pension if you don’t have any other provision in place. Some top tips when thinking about your retirement planning:

  1. Review your old pension schemes

This could be schemes from previous employment or old personal pensions that you have. It is possible that these old schemes could be transferred to generate more income. It is recommended that you always seek advice though before taking any action as this can be complicated and may not be in your best interests.

Your investments may fall as well as rise and you may not get back the amount invested. An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society. Tax treatment depends on your circumstances and rules may change.

  1. Work out your ‘Normal Budget’

Spend some time working out what your current outgoings are and think about how this may change when you retire (e.g., some fixed costs may stop but you might want to spend more on special experiences, travel, holidays etc).  You may want to consider care fees, prescription fees and other expenses that could relate to getting older. Don’t forget to factor in a bit of inflation because prices don’t normally reduce.

  1. Think about what you are going to do in retirement

Many people have dreams for when they retire and finish work, such as travel more, take up a new hobby or interest, buy a significant purchase (boat, motorhome etc). As you will have more time on your hands, think about how you will fill this time and what the likely costs for this will be. You can then work this into your retirement plan and reflect this in the income you need.

  1. The rule of 25

A simple rule of thumb to determine how much you might need in your pension fund when you retire is to multiply your estimated annual income by 25. E.g., An income of £20,000pa for a ‘moderate retirement’ (shown above) would require a pension fund of £500,000.

  1. Have a plan

There are lots of different assets that may form your retirement plan, not just your pension income. Don’t forget you will get the state pension, currently £179.60 per week – you can check your entitlement via the government website


You may have rental income from property, you might plan to sell your current house and downsize to generate some income and you could have other savings and investments to help fund your retirement.

Don’t forget….

  • You can start a pension from birth, so if you have children this is a great way to help them plan for their future too.
  • There is a lot of information on the internet and also a lot of untrustworthy people. You should always get advice from a reputable organisation before making any major decisions. The Financial Conduct Authority (FCA) has information on pension scams and how to avoid them.
  • Citizens Advice Bureau can help with pension advice, as can the Government Pension Advisory Service
  • Anyone who is going to act on your behalf should be registered with the FCA and you can check them out on the FCA register