Life stages / Approaching Retirement
Retirement is not a date. It is a decision that needs a plan.
The years before you stop working are the most important for getting the numbers right. Whether you are confirming you can retire when you hope to, deciding how to draw your income, or protecting what you have built, Aetas Wealth brings the full picture together.
Most people in this age group are not where they think they are.
Research published in 2026 found that five million UK adults aged 40 to 54 are not on track for an adequate retirement. The gap between expectation and reality is often invisible until someone models it properly.
The median age at which people want to retire is 60. The median age at which they actually retire is 66. That six-year gap is frequently a matter of insufficient planning.
The years before retirement are still high-impact. With the right plan, the gap between where you are and where you want to be is almost always closeable.
The big questions
The big financial questions at this life stage.
- Can I actually afford to retire when I want to?
- How do drawdown, annuity and State Pension work together?
- What does the Finance Act 2026 mean for my pension estate?
- Should I consolidate my pensions before I retire?
- How much tax will I pay in retirement and can I reduce it?
- What happens to my money if I die before I have used it all?
Where we focus
Where we focus for people at this life stage.
The areas that matter most in the years before retirement.
Pension review and consolidation
Consolidating multiple pension pots into a single plan, where appropriate, reduces cost, simplifies management, and makes it far easier to build a coherent retirement income strategy before you start drawing.
Retirement income planning
When can you afford to retire? What income will you have and from which sources? How do drawdown, annuity and State Pension work together? Cash flow modelling gives you a clear, honest answer.
Finance Act 2026, pension IHT
From April 2027, unspent pension funds will be subject to inheritance tax at 40%. If you have a substantial pension, this changes how you should use it. We model the impact and help you plan around it before the deadline.
Tax efficiency and investment review
Using annual allowances fully, structuring investments correctly between ISA, pension and general investment account, and ensuring your portfolio reflects where you actually are in life.
Protection and estate planning
Reviewing life cover and income protection as your circumstances change, and ensuring your estate is structured so what you have built passes efficiently to the people you intend to benefit.
Business owner planning
If you own a business, your exit timeline and personal financial plan need to work together. Pension contributions, Business Relief and the timing of a sale all intersect with your retirement plans.
The sequence
The sequence for the years before retirement.
The closer you get to retirement, the more specific the decisions become. There is less room for error, but also more clarity about what actually needs to happen.
Model retirement income
Drawdown, State Pension, annuity, ISA withdrawals. Cash flow modelling shows what the combination produces and whether it is enough.
Review pension consolidation
Multiple pensions from past employers. Consolidate where appropriate before you start drawing.
Address Finance Act 2026
Review how your pension sits in your estate before April 2027. The options available now are broader than those after it.
Reduce investment risk gradually
The years before retirement are not the time to discover your portfolio is more aggressive than you thought.
Finalise protection and estate
Will, lasting power of attorney, pension nominations, life cover. Everything in place before you stop working.
Set the retirement date
A confirmed target date makes the final sequencing clear and allows the plan to be finalised.
The 2027 change
The Finance Act 2026 changes everything about pensions.
Until now, keeping wealth inside a pension was one of the most effective estate planning strategies available. Pension funds sat outside your taxable estate. From 6 April 2027, that changes.
Unspent pension funds will be brought within the scope of inheritance tax at 40%. A pension pot of £500,000 that previously passed to your children intact could now face a tax charge of £200,000 or more, depending on your overall estate position.
This changes fundamental decisions: how much to hold in your pension versus other wrappers, how much to draw down each year, and how your pension interacts with your wider estate plan. The earlier you model this, the more options you have.
Common questions
Questions we hear most often.
Can I afford to retire when I want to?
Cash flow modelling is the most reliable way to answer this. It projects your income, expenditure and assets forward to show whether your plan produces the retirement you want, and what adjustments would improve it.
How does the Finance Act 2026 affect my pension?
From April 2027, unspent pension funds will be subject to inheritance tax at 40% for the first time. Anyone approaching retirement with significant pension assets should review their drawdown and estate planning before April 2027.
Should I consolidate my pensions before I retire?
Often yes, but not always. Some older pensions carry guaranteed annuity rates or defined benefit promises that would be permanently lost on transfer. Always take regulated advice before consolidating.
Should I take an annuity or use drawdown?
An annuity provides guaranteed income for life. Drawdown keeps your pension invested and flexible. Many people use a combination, securing a base level of guaranteed income while keeping the remainder in drawdown.
The first conversation is free
Find out where you actually stand.
A first conversation with Aetas Wealth costs nothing and commits you to nothing. We will look at your situation honestly and tell you what we think.
Book a free consultation →The value of investments and any income from them can fall as well as rise. You may get back less than you originally invested. Past performance is not a reliable guide to future performance. The levels and bases of taxation may also change.