See if you are on track for retirement with the right tools
Half of UK adults have not checked whether their retirement savings are on track. Of those who have checked, many are surprised by what they find. A retirement planner is not about predicting the future. It is about knowing where you stand so you can make better decisions now.
Before choosing a retirement planner, it helps to understand what makes up UK retirement income. Most people will receive income from three sources.
The full new state pension is currently £10,000 per year. To receive the full amount, you need 35 years of National Insurance contributions.
Check your forecast at gov.uk/check-state-pension
Through auto-enrolment, most employees are automatically enrolled into a workplace pension. Your employer typically matches contributions up to a certain level. The average workplace pension at retirement is around £100,000-£150,000.
ISAs, personal pensions (SIPPs), and other savings make up the third pillar. ISAs are particularly valuable in retirement because withdrawals are tax-free.
Not all retirement planners are equal. Some are basic calculators that give you a rough estimate. Others are comprehensive tools that model your specific situation. Here is what to look for.
A good planner shows you not just what you have saved, but what gap exists between your projected income and the retirement lifestyle you want. This gap is the number that matters.
Retirement planning is long-term. Your planner should show projections over 30 or more years, accounting for inflation, investment returns, and changing expenses at different life stages.
Different withdrawal strategies carry different risks. A good planner shows you how long your money lasts under different scenarios, from conservative 3% to more aggressive 5% annual withdrawals.
UK retirement planning has unique tax advantages: ISA allowances, pension tax relief, and the pension commencement lump sum. A UK-focused planner should account for all of these.
Auto-enrolment contributions are a minimum, not a target. The average auto-enrolment contribution of 8% is unlikely to deliver the retirement most people want. Supplementing with additional contributions is usually necessary.
£100,000 today is not worth £100,000 in 20 years after inflation. Many people underestimate how much they need because they do not factor in the rising cost of living over a 20-30 year retirement.
Women in the UK have on average 35% less pension savings than men at retirement. Career breaks, part-time work, and the gender pay gap all contribute. A good retirement planner should help you see and address your specific gap.
Delphina's retirement planner is designed specifically for the UK situation. It accounts for state pension forecasts, workplace pension contributions, ISAs, and UK-specific tax rules.
Use our free UK retirement planner to see where you stand and what you might need to adjust.