Retirement Planning Tips for Over 60s
A strong retirement plan empowers you to live life to the fullest after 60.
At Lateral, we’re here for people who have no intention of stopping. For those over 60 who see retirement not as an ending, but as an opportunity to do more rather than less.
More travel, more freedom, more time for health, wealth, and wellbeing.
That’s why retirement planning isn’t just about pensions. It’s about building confidence, clarity, and control so you can enjoy the next chapter of life on your terms.
Our practical retirement planning tips below will help you reduce stress, remove uncertainty, and feel positive about the future, so you can focus on living well, staying active, and making the most of every opportunity ahead.
Key Takeaways:
A clear retirement plan helps you understand how much money you’ll need and where it’ll come from.
Reviewing your pension pot early gives you more choice and fewer surprises.
Retirement planning is about your lifestyle, not just pensions and finances.
Knowing how the state pension and benefits work can improve your retirement income.
Good planning helps you retire with confidence, not compromise.
Retirement can be overwhelming for many people.
Without a focused plan, things often feel complex and stressful. The good news is that retirement planning can be straightforward. All you need to know is where to start and the steps to take.
Follow the guide below to plan your ideal retirement and make it a reality for your future.
Step 1: Picture Your Ideal Retirement.
What does the perfect retirement look like to you?
Perhaps you’d like to sell up and live by the sea in the UK, or you have bigger plans to travel the world. Whatever your retirement vision, it’s all achievable with the right approach.
The first step for retirement planning should always begin with visualisation. Think about the pace of life you want, what your day-to-day might look like, and how you’ll feel in your ideal retirement.
Visualise Your Lifestyle Goals.
When planning for retirement, a good place to begin is with lifestyle goals.
Before exploring finances and your expenses, try and picture a week in retirement. How will you spend your mornings? Who will you see in a typical day? And, what will provide you with purpose?
By visualising your lifestyle goals, whether you want to spend the rest of your days strolling the beaches of Cornwall or developing new art skills, your retirement is uniquely yours.
Write down your lifestyle goals to return to. This will help keep you on track with a focused retirement plan.
Decide Where You Want to Live.
Deciding on where you’ll call home during your retirement is an exciting but big step.
Your home will determine your quality of life. You may have plans to eventually downsize, move closer to family, or relocate altogether. The decision is yours to make, and one that can be very empowering.
Of course, housing costs will need to be considered. This will include mortgage or rent payments, utilities, and upkeep. You should also think about transport links, shops, and what your community offers.
Whether you’re seeking a fresh start somewhere new or familiarity and stability, deciding where you want to live is a key aspect of any retirement plan.
Step 2: Map Out Your Future Expenses.
Let’s discuss retirement expenses. Nobody enjoys budgeting, but it’s a must when it comes to retiring.
Your future expenses centre around when you retire and your retirement income. By understanding what you can afford early on, essential costs, and desired funds for leisure, you’ll be better positioned. Here are a few simple ways to map out your retirement expenses.
Estimate Essential Costs.
Essential costs include anything important.
From housing costs, food, utilities and transportation to ongoing healthcare, you will have your own.
Take the time to calculate the costs for each of these categories, writing down notes that you can refer to later.
Bear in mind that costs can fluctuate, especially once you stop working.
Include Leisure and Travel.
Leisure and travel may not be an ‘essential’ cost, but by retirement age, you’ve certainly earned a bit of time to rest and recuperate.
Think about how many holidays you’d ideally like to take a year, the costs for these, and any leisure activities you may want to engage in.
Factor in Inflation.
Unfortunately, the cost of living is always rising.
For this reason, it’s a good idea to plan for everyday prices changing during retirement.
Build flexibility into your retirement plan and be sure to review your budget regularly. This will keep you on track and ensures that your finances are protected.
Step 3: Calculate Your Expected Income.
Now onto the most crucial consideration for retirement planning: your expected income.
For everyone, this looks slightly different. Most people in retirement will rely on multiple income sources, including their pension.
By understanding where your income is coming from, you’ll be able to assess your plans and keep them realistic.
Review Workplace and Personal Pensions.
We advise that you begin by listing all of your pensions. This should include workplace schemes and personal pensions. In doing so, you’ll have a big picture of your pension pot.
Many people lose track of their previous pensions, especially if they’ve had multiple jobs over the years.
The good news is that the government’s pension tracing service makes it easy to locate them.
You will need to check each pension individually if this is the case. Get clear on how the pensions work, when you will be able to access them, and whether flexible withdrawals are included.
Include Other Income Streams.
Many people who retire actually decide that they’d like to work part-time.
This is a great option for keeping active and for providing social interaction. And, there are many different types of part-time jobs you can find.
Working part-time will also provide an additional income, which is another key benefit.
Check Government or Social Benefits.
Checking which government payments and social benefits you may be eligible for in retirement can make a significant difference.
You may be surprised to learn that you can claim for housing-related costs, council tax reductions, or grants for improving accessibility in your home.
Find out more information by visiting Age UK for a complete list of benefits and entitlements.
Step 4: Look for Opportunities to Increase Savings.
There are many ways in which you can boost your income and savings during retirement. Some of which you may not have even considered before.
Lateral has created a handy checklist below to ensure that you’re maximising your finances after 60.
Boost Pension Contributions.
It may be possible to boost pension contributions and plan ahead for retirement.
This could include increasing your workplace pension contributions through maximising the employer match scheme.
Another option to think about is whether you have enough income currently to increase any regular pension payments. Any extra funds will enable you to enjoy your retirement later.
If your employer offers a salary sacrifice scheme, you may want to agree to a reduction in your general salary.
This means that the difference is paid into your pension pot for the future.
Maximise Savings Accounts.
Savings accounts still play an important role in retirement planning.
Even though interest rates change, accessible cash gives you peace of mind and flexibility.
If you have an instant access savings account, this is great for any emergencies.
On the other hand, fixed-term accounts generally pay out higher interest rates over time.
Other tax-free allowances should be considered as part of your retirement plan. This includes ISAs, which can earn interest with no tax.
Consider Additional Investments.
More and more people are choosing to invest their money in order to increase their pension pot.
Investments include shares, stocks, investment funds and other types of long-term options.
While investments may help your money grow over time, you should also consider risk.
By working with a professional, you’ll be able to identify lower-risk investment avenues and go from there.
Step 5: Decide Your Retirement Timeline.
When you choose to retire is a personal decision. Everyone is different, and there’s no ‘right’ age for retirement.
With this said, some people choose to retire as soon as they can. Others enjoy working and then gradually cut their commitments down towards retirement.
It can be helpful to look at different retirement ages and see how they affect your income.
Retiring earlier may mean a lower pension, while working longer can increase your pot and reduce the number of years you need to fund.
Consider Part-Time Work Post-Retirement.
As mentioned, part-time work is a great way to boost your income.
Just a small amount of extra money each month can help to eliminate any stress and pressure.
Whether you choose something related to a previous career or opt for something different altogether, that’s your decision.
Plan to Pay Off Debts in Advance.
Nobody ever wants to go into retirement with debts looming over them.
By paying off outstanding debts, you’ll be guaranteeing your freedom during retirement.
Think about how to settle mortgage payments, loans, and credit cards ahead of retiring.
This might involve overpaying your mortgage or consolidating borrowing into a more manageable plan.
In doing so, your retirement income will go much further.
Step 6: Choose How to Access Your Pension Funds.
Once you reach pension age, you will need to decide how to take money from your pension.
This decision can shape your retirement income for many years, so it’s an important to consider all angles.
By understanding your options early on, you can plan for retirement with confidence and avoid rushed decisions.
Guaranteed Pensions.
Some pensions will offer a guaranteed income for life, often known as defined benefit pensions.
These provide a regular income and can offer reassurance and stability.
The income is usually based on your salary and length of service. If you have this type of pension, it’s very important to understand how it works and when payments start.
Flexible Contribution Pensions.
Defined contribution pensions offer more flexibility.
You can usually take a tax-free lump sum and then choose how and when to withdraw the rest.
This flexibility allows you to adapt your income to your needs, but it also means you need to manage your funds carefully.
Withdrawing too much too soon can leave you short later in life. Planning withdrawals alongside other income sources is essential.
Explore Free Pension Guidance.
There are many free guidance services out there to help you understand your pension options.
These services provide impartial information and can help you make informed choices about your pension.
Keep in mind that they won’t provide personalised advice, but rather provide a great starting point for retirement and pension plans.
Reassess Your Pension Investments.
As retirement approaches, it’s wise to review how your pension is invested. Many people choose to reduce risk over time to protect their savings.
This does not mean growth isn’t important anymore, but the focus instead shifts to preserving value and generating income.
Regular reviews ensure your investments still align with your goals and retirement timeline.
Step 7: Get Expert Financial Advice.
Financial advice can provide clarity and reassurance during retirement planning.
An adviser can help you understand complex decisions and tailor a plan to your circumstances.
This is helpful if you have multiple pensions, investments, or a significant pension pot. We always advise that you seek a regulated adviser with experience in retirement planning.
Advice will always comes at a cost, but the price is worth it when you think about your long-term future.
Think of it as an investment in your future self!
Step 8: Claim Your Pension When Ready.
You do not have to claim your pension right away when you hit pension age.
In fact, delaying your pension can sometimes increase your income.
Before claiming your pension, you should check how it may affect other benefits and income sources.
With pensions, timing matters, and small decisions can have long-term effects. Make sure you understand the process and give yourself enough time to complete any paperwork involved.
Lifestyle and Wellbeing Considerations.
Retirement planning is not just about money - it’s also about your wellbeing, personal relationships, and sense of purpose.
Treat Retirement Like a New Chapter
Retirement is not the beginning of the end; instead, it’s a new stage full of hope and possibility. Treat retiring as the new chapter you deserve.
Structure Your Daily Routine.
A daily routine will always help you during retirement. Keep your motivation up and focus on your wellbeing everyday.
Talk Plans Through With Loved Ones.
Retirement affects more than just you. Talking openly with partners and family helps manage expectations and avoid misunderstandings.
Expand Social Connections.
Social connection plays a key role in mental and emotional health. Retirement can change how and where you interact with others. We encourage you to join community groups, start new hobbies, and socialise. You’ll feel much better for it.
Focus on Health and Fitness.
Good health supports independence and enjoyment in retirement.
By staying active as much as possible, you’ll be setting yourself up for a positive and empowered retirement.
Core Steps to Secure Retirement.
Bringing everything together can make retirement far more manageable. The core steps outlined below will help you to feel confident and ready.
Identify When You Can Retire Comfortably.
Understanding when you can afford to retire removes uncertainty. This involves reviewing income, expenses, and savings together.
Use Tools to Project Retirement Income.
Online calculators and planning tools can help you to estimate your future income. These tools are useful for exploring different scenarios.
Understand How Retirement Timing Impacts Benefits.
The age at which you retire can affect pensions and benefits. Knowing how timing influences income allows you to plan best for your retirement.
Plan to Clear Debts Early.
Reducing financial commitments before retirement gives you greater freedom. This step supports long-term stability and peace of mind.
Strategise Your Savings to Hit Goals.
Savings work best when they are linked to clear goals. Seek financial advice for this step if you haven’t already.
Review and Adjust Investments Regularly.
Retirement planning is not a one-off task. Regular reviews ensure your plan stays aligned with your needs and circumstances.
More Information and Research.
Department for Work and Pensions
Research and policy papers on pensions, retirement age, and later-life income trends in the UK.
https://www.gov.uk/government/organisations/department-for-work-pensions
GOV.UK – State Pension & Benefits
Guidance on State Pension age, payments, deferral, Pension Credit, and other benefits.
https://www.gov.uk/browse/working/state-pension
The Pensions Advisory Service
Help with pension problems, lost pensions, and technical questions.
https://www.moneyhelper.org.uk/pensions-and-retirement
MoneyHelper
Impartial guidance on pensions, budgeting, savings, ISAs, and debt.
https://www.moneyhelper.org.uk
Age UK
Advice on pensions, benefits, housing, health, and wellbeing in later life.
https://www.ageuk.org.uk
Independent Age
In-depth guides on retirement income, care costs, and financial support.
https://www.independentage.org
Money and Pensions Service
Research and oversight of MoneyHelper and Pension Wise.https://www.maps.org.uk
