Pension Realities: Why It’s Time to Start Thinking Seriously About Retirement
If you’ve been wondering whether you’re saving enough for retirement, you’re not alone.
A recent article in the iPaper shared stories of people across the UK with strong pension pots — and highlighted the growing pressure on individuals to fund their own futures. With the Pensions and Lifetime Savings Association (PLSA) estimating that £1.2 million is now required for a “comfortable” retirement, many people are understandably feeling overwhelmed.
At Exchange Accountants, we’ve been following this closely — and we know that the challenges and opportunities around pension planning vary enormously depending on your age, income, employment status, and lifestyle. Whether you’re just starting out or thinking about winding down, here are some key insights and our expert tips for getting your pension strategy on track.
Why the Pressure Is Mounting
The current auto-enrolment pension scheme, which sees 8% of your salary contributed between you and your employer, is unlikely to get you anywhere near the £1.2m target. For someone earning £35,000 a year, projections suggest they may end up with less than half the amount needed — unless they take action.
The stories from the iPaper range from self-employed professionals saving the maximum £60k per year into private pensions, to baby boomers who’ve benefited from defined benefit schemes (now all but extinct), to FIRE (Financial Independence, Retire Early) followers aggressively saving 70% of their income.
It’s a broad picture — but one consistent theme emerges: taking control early makes all the difference.
Exchange Accountants’ Pension Tips by Life Stage
In Your 20s–30s: Start Small, Start Now
Even modest contributions have time to grow thanks to compounding.
Opt in to your workplace pension and consider increasing contributions above the minimum.
Explore Lifetime ISAs — they can be a helpful supplement if you’re also saving for a home.
In Your 40s–50s: Review and Ramp Up
This is your make-or-break decade. Reassess your pension savings and make top-ups where possible.
Consider using a Self-Invested Personal Pension (SIPP) for more control and potential tax benefits.
If you’re self-employed, make sure you’re contributing regularly — pensions aren’t just for employees.
In Your 60s and Approaching Retirement: Know Your Numbers
Map out your income sources: pensions, state pension, investments, property.
Consider the timing of your pension withdrawals carefully — taking too much too soon could reduce long-term sustainability.
Think beyond the pot: what lifestyle do you want to maintain, and how can you fund it?
Why It’s About More Than Just the Pot
A comfortable retirement isn’t just about hitting a magic number — it’s about peace of mind. Do you want to travel? Help your children or grandchildren? Volunteer or start a part-time venture? These goals require planning — and that’s where we come in.
At Exchange Accountants, we believe pensions aren’t a box to tick — they’re a tool to shape your future. Whether you’re building your business, juggling family life, or eyeing early retirement, we can help you design a tax-efficient, realistic plan to support the lifestyle you want.
Get in Touch
If this topic has you thinking more seriously about your pension planning — we’re here to help. Our team can walk you through your options, assess your current position, and create a long-term strategy tailored to you.
Contact us today to book a pension review consultation.
