I want to retire… but can I afford to?

February 11th 2026

Retirement used to be simple. Work until 60 or 65, then enjoy a steady income from a company pension. Today, retirement is far less predictable, and planning ahead has never been more important. 

In the past, many people had what’s called a defined benefit pension. These pensions promised a guaranteed income at a set retirement age, often around two-thirds of pre-retirement earnings. They frequently included a spouse’s benefit, continuing to provide income even after the pension holder had passed away. For generations like my parents’, it was possible to plan for retirement with confidence, knowing roughly what to expect.

Take my Grandad Donald as an example. He worked for the same company for over 40 years, starting after National Service at 19, and retired at 60. His defined benefit pension continued to pay my Grandma an income after his death, providing a reasonable standard of living. A lifetime of dedication, rewarded with security.

But things have changed. Average life expectancy at age 65 has risen from 14 years in 1981 to almost 22 years today. Longer retirements mean higher costs for these traditional pensions. At the same time, the way we work has shifted. People are more mobile, with many moving jobs multiple times in their careers. The average time spent at one company is now around five years, making it harder for employers to provide defined benefit pensions.

As a result, most defined benefit schemes are now closed to new members. Instead, companies offer defined contribution pensions, which build up a pot of money invested over time. The income you receive in retirement depends on many factors, including:

• How much you and your employer contribute

• Investment performance

• Interest rates

• Inflation

• The age you choose to retire

With so many variables, retirement is no longer a fixed date, it’s a moving target. And this is where financial advice and planning can make all the difference.

When we meet with someone planning for retirement, we start by asking:

• When would you like to retire?

• What income will you need to maintain your desired lifestyle?

• What resources do you have available, including pensions, savings, investments, and other assets?

With this information, we can project potential outcomes, helping clients understand what’s realistic, and what steps can improve their options.

But it’s not just about planning for the ideal scenario. Risk management is crucial. A market downturn just before retirement could drastically reduce available funds. That’s why regular discussions and reviews are essential. They help ensure your retirement strategy remains on track, adjusting for changing circumstances and protecting against unnecessary risk.

Sometimes timing makes all the difference. Clients may choose to adjust their retirement age, reduce hours, or phase into retirement to optimise pension access. Careful planning ensures these decisions are made in the most effective way, maximising both income and flexibility.

Ultimately, pensions have changed significantly, and retirement is less predictable than in the past. However, this also brings more flexibility and potential opportunity. With the right guidance, you may even be able to retire earlier than you imagined, or at least, make confident decisions about the timing that works best for you.

At Network Insurance & Financial Planning Limited, we provide holistic, independent financial advice. We help clients navigate the complexities of modern retirement planning, ensuring they understand the options and risks, helping them achieve their retirement goals.

If you want to know whether you can retire when you want, and how to make the most of your savings and pensions, our advisers can guide you every step of the way. Contact us today at advice@network.gg or call 01481 701400, and one of our qualified advisers will be delighted to help you start planning for the retirement you deserve.