Retirement planning is something that you’ll likely consider early on in your career, from the very first time you start paying into a pension.

As you get older, this starts to ramp up and become more of a priority, as you consider how to accumulate and save your wealth into your pension, ISAs, and other investments, with a view to enjoying a comfortable retirement.

But what happens when you reach retirement? This is by no means an end point to your aspirations, and financial planning is still important for helping you achieve your goals.

Read on to discover why it’s important to continue setting goals after you retire, and how effective financial planning can make a difference in helping you achieve these.

Setting financial goals after you’ve retired can help you continue to be in control of your wealth

Considering your future finances may not be your priority after you retire. If this sounds like you, then you’re not alone.

Money Marketing reports that 36% of people 55 and over say they have no financial aspirations for the year ahead.

This can be understandable. As you get older, you may feel you’re already “set”, and you can simply coast. And as you head into retirement, your financial goals will change and can seem less defined.

Whereas before your aim may have been as simple as ‘save enough to live comfortably in retirement’, once you get there you need to think about multiple objectives beyond just ‘having enough to live on’. As well as covering your immediate costs, there could be additional or unexpected future costs, such as paying for healthcare, and you may also be looking to pass on a legacy to your family.

Three key areas may need extra focus post-retirement

1. Transitioning from ‘saving’ (accumulation) to ‘spending’ (decumulation).

The ingrained savings habit can be hard to shift. You’ve spent years using earned income to build up enough wealth to fund your retirement, i.e. an ‘income to capital’ strategy. When you do stop work this is turned on its head, and you are now looking at using the accumulated wealth to provide your income, i.e. ‘capital to income’.

This can often be a challenge. In some cases, people are reluctant to spend too much, either because they are concerned that they may run out of money too soon, or because they want to pass on as much as possible to their family. Others are set on having the same lifestyle as they had while working, including holidays and leisure activities, and may use up their saving too quickly.

How financial planning can help

Continuing to work with a financial planner can give you confidence that your long term retirement plan is both sustainable and flexible enough to deal with any changes.

We can, and do, use cashflow modelling to show you how long your income may need to last and how you can use your accumulated wealth to support a lifestyle that balances comfort with realistic spending.

2. Changing life circumstances and priorities

When life events change your circumstances, your priorities may shift.

For instance, you may have decided that travelling more would be a top priority in retirement. But if you welcome new grandchildren, your new aspiration might be to spend more time with your family or adapt your travel plans so your family can come with you.

Or you may have decided that you’d like to stay in your family home but then realise that downsizing might be a more manageable option.

How financial planning can help

Cashflow modelling can be used to map out how your finances may look under different scenarios, such as high inflation, additional expenses or early death, illustrating a range of potential outcomes.

You can then assess how you would be able to weather each scenario, giving you the confidence to change your plans along with your circumstances and priorities.

3. Focusing on estate and legacy planning

This may have already factored into your earlier-stage financial planning. But as we’ve outlined above, circumstances can change, and this may impact your ongoing planning.

For example, births, marriages, divorce, and remarriage can all factor into your life and your family’s life, and this may change the way you’d like to leave your estate.

Legislation, too, is constantly evolving, so what may have been an effective plan when you made it could now leave your beneficiaries more open to a larger Inheritance Tax (IHT) bill.

A good example of this is incoming changes to pensions and IHT. Traditionally, your pension would fall outside your estate and not be considered for IHT purposes, making it a tax-efficient way to pass on wealth. However, from April 2027, unused pensions will be included in your estate and will fall into the scope of IHT.

How financial planning can help

At Intelligent Pensions, we are always fully abreast of proposed or incoming legislative changes and can advise you on how to accommodate these in your financial plan.

We can also work with you on the most effective ways to leave your wealth to your loved ones to shield it from IHT.

Get in touch

Post-retirement financial planning can help you continue to get the best from your hard-earned wealth, in line with your shifting aspirations and changing life circumstances. We’re here to support you at every stage, ensuring your financial plan aligns with your intentions.

Please email hello@intelligentpensions.com or call 0800 077 8807 to find out more.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate estate planning or tax planning.