The 8 Step Guide For A Comfortable Retirement

Many people who have built up wealth over the years, through pensions, investments, property or a business, need help to plan how it all comes together ready for retirement. 

This 8-step guide is designed for people within ten years of retirement and is full of helpful tips to prepare for life after work.

Ready to get into the details? NH Wealth can help you prepare for retirement with a detailed, personalised plan that works for you and your family. Book a chat today for a no-obligation call with Nick Hawkins.  

1. Calculate how much you need 

Before making any big financial decisions, it’s important to understand how much you actually need in retirement.  

Cashflow modelling is the most useful tool here. It projects your income, expenditure, assets and liabilities into the future, allowing you to answer questions like:  

• When can I afford to retire? 

• What lifestyle can I afford to maintain in retirement? 

• Will I run out of money?  

It considers inflation, market returns, tax, one-off expenses (like home renovations or helping children onto the property ladder), and more. 

Once you know your “number,” you can plan with purpose. 

2. Review and consolidate your pensions  

It’s likely you’ve built up several pensions over the years. These can be difficult to track, and not all of them will be working as hard as they should.

• Consolidating pensions into a single, flexible plan can make things far easier to manage and access in retirement. 

• It may also reduce fees, give you more investment choice, and better flexibility with how you access your pension. 

• Don’t forget to review your beneficiary nominations and check whether any pensions come with valuable guarantees. 

3. Create your retirement income plan  

Your retirement plan should include how and when you are going to take an income from your investable assets as well as the tax implications of doing so.

• Blend income from different tax wrappers (pensions, ISAs, taxable investments) to create an income that’s sustainable and tax-efficient. 

• Make use of your personal allowance, dividend allowance and capital gains allowance to reduce unnecessary tax. 

• Be aware of how pension flexibility rules work, including the options to take tax-free cash, drawdown, or annuity income, and when to use each. 

4. Review your investments   

Your investment portfolio should reflect your long-term goals. That often means a shift in focus. Not necessarily from “growth” to “safety”, but from building wealth to drawing a sustainable income and preserving capital.

• Check your investments are appropriately diversified and aligned with your risk appetite. 

• Ensure that charges are competitive and performance is monitored. 

• Understand which accounts to draw income from first, and how your withdrawals will affect the long-term health of your portfolio. 

• Don’t underestimate longevity risk (the risk of outliving your money). With life

  expectancy rising, many people underestimate how long they’ll live. It’s not

  uncommon for one member of a healthy couple in their early 60s to live into their

  90s. That could mean needing to fund a retirement that lasts 30 years or more.

5. Protect yourself and your family   

As you enter retirement, the reliance on your accumulated wealth increases. Therefore, your need for protection may also increase.

• Consider life cover (particularly if your spouse or children depend on you financially). 

• Review critical illness and income protection if you’re still working part-time or consulting. 

• Review whether any protection policies provided by your employer cease at retirement, and consider replacing them with an individual policy you can maintain thereafter.

6. Don’t overlook tax planning  

Retirement is one of the most important stages for strategic tax planning. You may be receiving income from multiple sources, which makes careful planning even more valuable. 

• Use pension contributions (even in your final working years) to reduce your income tax liability. 

• Plan your pension withdrawals carefully to manage your tax bands across different years. 

• If you have excess income, consider gifting, charitable donations, or IHT-efficient investments. 

7. Get the legal basics in place   

It’s one of those jobs people put off, but it’s essential:  

• Prepare or update your Will to ensure your estate is distributed according to your wishes. 

• Put in place Lasting Powers of Attorney for your finances and health, so that someone you trust can act on your behalf if needed. 

• Review any death benefit nominations for your pensions and death-in-service benefits. 

8. Think beyond the numbers  

Before retirement, you need to ask yourself:  

• What do I want life to look like after work? 

• Will I work part-time, volunteer, travel, or take up a new hobby/project? 

• Are there any goals I’ve been putting off that are now within reach?  

A clear financial plan creates the space to answer these questions with confidence. 

Final Thoughts  

You’ve worked hard to get to this point. Now it’s time to make sure your money works just as hard for you. The best retirement plans are simple, clear, and tailored to your goals. Getting the essentials in place now means fewer decisions later on. 

If you’d like to talk about any of the steps outlined above in more detail, we’d love to help you get your plans in place. You can schedule a call, and start with a no-obligation chat. You can get a feel for what your first call with us will be like here. 

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

• The Financial Conduct Authority does not regulate Cashflow Planning. 

• Levels and bases of, and reliefs from, taxation are subject to change and their value will depend upon personal circumstances. Taxation and pension legislation may change in the future. 

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