How to plan for retirement: Retirement planning checklist

You’re likely to have different costs after you retire, so it’s a good idea to create a retirement budget to check how much income you’re likely to need.

You can use our Budget planner to list everything you expect to still pay, including regular bills, travel and one-off costs.

For more information, see our guide How much money do I need for my retirement?

To make sure your retirement income is on track to cover all your costs, regularly calculate how much you’re likely to get.

To find your latest pension estimates, you can:

• check your State Pension forecastOpens in a new window on GOV.UK

• log in to your private pension provider’s online account or contact them for an updated statement.

You can then use our Pension calculator to estimate your total retirement income from all your pensions. 

If you cannot find the details for a pension scheme you have, see our guide How to find old or lost pensions.

If you plan to have other income after you retire, make sure to estimate and include that too. 

For example, you might have income from:  

• work or a business

• savings and investments 

• renting out property or a room.

You might also want to use your savings to fund some of your retirement or have lump sums from selling and downsizing your home.

For more information, see our guide How to calculate your estimated pension and retirement income.

If your estimated retirement income does not cover your expected costs – or not enough for the lifestyle you’d like – there are ways you can boost the amount you’ll get. 

For example, you could: 

• pay more into a pension – your employer might also match your contributions   

• check you’re getting all the tax relief you’re eligible for

• make sure you’re on track for the maximum State Pension.   

For more information, see our guide Ways to boost your pension.   

You can also use our Benefits calculator to check if you’re entitled to any extra payments or grants.    

The earliest you can take your State Pension is your State Pension age

Private pensions can usually be claimed from age 55 (57 from April 2028), unless:

• you need to retire earlier due to poor health 
• your pension scheme lists an earlier protected age.

If you’re considering taking your private pension from 55, be aware that it might have special features designed to pay out at the scheme’s retirement age – called your normal pension age (NPA). This means you’ll often get more if you wait.

The NPA varies per scheme but is often around age 60, 65 or linked to your State Pension age. If this does not match your plans, you can usually choose to:

• tell your provider when you’d like to take your pension, called a selected retirement date (SRD)

• delay taking your pension after your NPA and retire later.

You can often choose to start taking your pension before you've fully retired. For example, you could use your pension to top up your salary or allow you to reduce your hours.

Just be aware your pension income is added to your other earnings when calculating how much Income Tax you need to pay.

When planning your retirement date, check when you’ll be able to clear any debts you have – such as a mortgage, loan or credit card.

Paying off debts after you’ve retired might affect how comfortable your life is.

For more information, including where to find free debt advice, see our guides:

• How to prioritise your debts

• Can I use my pension to pay off debt?

How you can take your pension depends on the type you have. 

You can use our tool to find out your pension type or ask your pension provider.

If you have a defined benefit pension, you’ll get a guaranteed regular income based on your salary and how long you worked for your employer.

You might also be able to take a tax-free lump sum upfront – either as a separate amount or by reducing the income you’ll get later. You can ask your scheme to explain the rules that apply to you.

If you have a defined contribution pension, you can usually choose to take up to 25% as a tax-free lump sum and:

• leave the rest invested so you can take taxable income as and when you need it – called pension drawdown

• convert some or all of the rest into a taxable guaranteed income – called buying an annuity.

You do not have to take the full 25% as a tax-free lump sum, or any at all. The more you take, the less you’ll have to give you an income later.

Alternatively, you could take your pension in one go or as multiple lump sums, with up to 25% of each amount paid tax-free.

You can also normally combine these options. 

For more information, see our guide What can I do with my pension pot?

Many defined contribution pension providers will take fewer risks with your money as you get closer to retirement, as:

• there’s less time to recover any investment losses

• your provider assumes you’ll take all the money at that point.

For example, within five to ten years of your normal pension age, your money might be moved to investments that are generally considered more stable, like government bonds and cash. 

But you might want to consider a different way to invest your money if you’re planning to:  

• retire earlier or later than your scheme’s normal pension age

• use pension drawdown to take a flexible retirement income.

This is because some of your pension will continue to be invested after your planned retirement date, so you might miss out on extra growth from using a wider range of investments.

For more information, see our guide How to choose your own pension investment options.

When and how you choose to take your pension can affect how comfortable your retirement is.    

A regulated financial adviser can help you plan for retirement, including:    

• recommending products and providers to use   

• advising where to invest your money 

• explaining your options to reduce the tax you might need to pay. 

For more information, see our guide How to find a pension or retirement adviser.

Financial advisers must tell you how much you need to pay before you commit. 

When you’re ready to start taking your pension, you’ll need to contact your pension provider(s) and tell them what you’d like to do.

You can find pension contact detailsOpens in a new window for lost pensions on GOV.UK.

If you have a defined contribution pension, see our guide How to find the best deal when taking your pension.

To claim your State Pension, you should receive a letter around four months before your State Pension age with an invitation code and instructions. For more information, see our guide about how the State Pension works. 

It’s also a good idea to:

• check if you can claim Pension Credit

• make or update your will 

• consider setting up a power attorney – this lets someone you trust manage your health and finances if you’re unable to

• check your expression of wish form is up to date – this tells your pension provider who you’d like to inherit your pension or death benefits

• plan how you might pay for long-term care.