You may have read our 8-step guide for a comfortable retirement. But do you know about the common pitfalls you need to avoid? 

At NH Wealth, we’re experts in retirement planning, so we’re sharing a whistle-stop guide to the most common mistakes made by people approaching retirement, and how to avoid them. 

The list includes: 

1. Underestimating how long retirement might last 

2. De-risking investments too early 

3. Relying on workplace protection (and losing it at retirement) 

4. Entering retirement without a clear strategy 

5. Saving too little, too late, and spending without a plan 

6. Ignoring tax efficiency in retirement  

7. Putting off the ‘admin jobs’ 

Don’t forget – if you have any questions or you’re ready to make your retirement plan with a professional adviser, you can schedule your free, no-obligation call with NH Wealth today. 

Let’s dive in… 

1. Underestimating How Long Retirement Might Last 

This is one of the most frequent oversights. Many people assume their retirement will last 20 years or so, but for a healthy couple in their early 60s, there’s a high chance that one of them will live into their 90s. That’s a 30-year retirement, potentially as long as your working life. 

Failing to account for this longevity risk can lead to one of the worst outcomes in financial planning: running out of money in later life. A proper plan will stress-test your finances to make sure they can go the distance, not just the first few years. 

2. De-risking Investments Too Early 

As retirement approaches, it’s natural to think about reducing investment risk, but many people take this too far, too soon. A common example is shifting a large portion of a pension into low-risk or cash-like assets in your early 60s, without considering that your retirement could last 30 years or more. 

One feature to be aware of is Lifestyling, which is built into many older or default pension schemes. It automatically shifts your pension investments from growth assets (like equities) into more conservative ones (like bonds or cash) as you approach your chosen retirement age. This can make sense if you're planning to buy an annuity, but it may not be appropriate if you're planning to stay invested during retirement. 

The problem is many people don’t realise it’s happening. If you haven’t reviewed your pension recently, it’s worth checking whether lifestyling applies, and whether it still suits your retirement strategy. De-risking too early can limit long-term growth and increase the risk that your money doesn’t last as long as you need it to. 

3. Relying on Workplace Protection (and Losing It at Retirement!) 

Many professionals assume they’re covered when it comes to life insurance, income protection, or critical illness cover, but this protection often ends the day they retire or leave employment. If you don’t have personal protection in place, you may find yourself uninsured at a time when policies become more expensive or even unavailable due to age or medical history. 

The earlier you set up your own cover, the more options you’ll have, and the lower the cost. Having your own plan means you’re not reliant on your employer and can carry your cover with you into retirement. 

4. Entering Retirement Without a Clear Strategy 

It’s easy to focus on the retirement date itself, but what happens next? How will you take an income? In what order will you access your various pensions, ISAs, or other assets? How will you minimise tax and avoid depleting your savings too quickly? 

Many people drift into retirement without a clear plan, and that’s when avoidable mistakes happen. A structured withdrawal strategy, underpinned by cashflow modelling, gives you clarity and control from Day 1. 

5. Saving Too Little, Too Late 

This is a tough one, because many people spend their 40s and 50s juggling school fees, mortgage repayments, and general lifestyle costs. But as you approach retirement, it’s important to increase your pension and investment contributions if you can. These final years often offer the chance to top up your retirement pot significantly, especially if your income is higher and your expenses are starting to reduce. 

Remember, every pound you save now is a pound working for you in retirement, potentially for decades to come. 

When it comes to spending without a plan, remember that the early years of retirement are often the most active and expensive. Without some boundaries and forward planning, people risk drawing down too much, too soon, making the later years financially tighter than they need to be. 

6. Ignoring Tax Efficiency in Retirement 

Retirement income can come from a mix of sources: pensions, ISAs, dividends, rental income, and more. If you don't coordinate how and when you access these, you could end up paying more tax than necessary. 

A smart retirement plan will consider how to blend withdrawals across different tax wrappers to make the most of allowances and keep your income tax bill under control. 

7. Putting Off the ‘Admin Jobs’ 

Tasks like writing or updating your Will, setting up Lasting Powers of Attorney, or updating pension death benefit nominations often get left until “later.” But these are the building blocks of good retirement planning. 

Without them, you risk complications for your family, delays in accessing funds, or assets passing in a way that doesn’t reflect your wishes. Getting these sorted brings peace of mind and avoids unnecessary stress down the line. 

Key takeaways and next steps  

The years leading up to retirement are some of the most important in your financial life.  

Avoiding these common mistakes and having a clear, personalised plan can make the difference between a retirement that’s just “comfortable” and one that gives you real freedom, confidence, and choice. 

So, what’s next when preparing for your retirement? We recommend making a note of the points in this list that are most important to you personally and raising them in your first meeting with NH Wealth.  

It’s quick and easy to book your call today.  

Please note, this blog is for information purposes and does not constitute financial advice, which should be based on your individual circumstances. 

Cover will cease on insurance products if premium payments are not maintained. 

Generally, these plans have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse. 

The Financial Conduct Authority does not regulate Cashflow Planning.