Life stages / In Retirement
You've reached retirement. Now the plan needs to work.
Retirement is not the end of financial planning, it is where it becomes most consequential. Managing income, protecting assets, planning your estate and adapting to changes in later life all require ongoing attention. Aetas Wealth works with people in retirement to make sure their money does what they need it to do, for as long as they need it to.
Retirement is longer than most people plan for.
A couple retiring today at 65 has a reasonable probability that one of them will live past 90. That is a 25-year retirement. The decisions made in the first few years, how much to draw, from which wrapper, in what order, have a compounding effect over that entire period.
Most retirees underestimate sequence-of-returns risk, inheritance tax exposure and the cost of later-life care. The Finance Act 2026 pension changes have added a further layer of complexity that many existing plans do not yet reflect.
A retirement income plan that works at 65 may not be optimal at 75 or 85. Regular review, and a plan built to flex, makes a significant difference to outcomes.
The big questions
The big financial questions at this life stage.
- How much can I safely draw from my pension each year?
- Should I draw from my pension or my ISA first?
- How do I plan for the possibility of needing care?
- What does the Finance Act 2026 mean for what I leave behind?
- How do I pass wealth to my children as tax-efficiently as possible?
- Is my portfolio still right now that I am drawing from it?
Where we focus
Where we focus for people in retirement.
The areas that matter most once you have stopped working.
Retirement income planning
How much can you draw, and from which sources, without running out of money or paying more tax than necessary? We model your income from pension drawdown, annuity, ISA, property and State Pension to give you a clear, sustainable income strategy.
Finance Act 2026, pension IHT
From April 2027, unspent pension funds will be subject to inheritance tax at 40%. This changes when and how much you should draw from your pension relative to other assets. We model the impact and help you restructure your drawdown strategy.
Estate and inheritance tax planning
Making sure your estate passes efficiently to the people you intend. This includes reviewing wills, Lasting Powers of Attorney, trust structures, gifting strategies and the interaction between your pension, property and other assets.
Later life and care planning
Planning for the possibility of care needs, whether at home or in a residential setting, is one of the most important and least discussed areas of later life planning. We help you understand the options, the costs and how to stay in control.
Investment management in retirement
Your strategy in retirement should be different from the one that built your wealth. Sequencing risk, income requirements and a longer time horizon than many assume all need to be reflected in how your portfolio is structured.
Ongoing financial planning review
Retirement is not a set-and-forget phase. Tax rules change, your circumstances change, and markets move. An annual review with a planner who knows your full picture keeps your plan relevant.
The sequence
The sequence once you have retired.
Retirement is not a single event, it is a phase that evolves over decades. The plan needs to adapt as your circumstances, health and priorities change.
Establish the income structure
Which pots to draw from and in what order. Pension, ISA and State Pension interact differently for tax and inheritance purposes.
Review the Finance Act 2026 position
From April 2027, unspent pension funds face 40% inheritance tax. How much should remain in the pension versus being drawn down?
Plan for care costs
Later life care is the largest unplanned expense most retirees face. Modelling the range of scenarios now gives you the most options.
Structure the estate
Gifts, trusts, pension nominations, will. Passing wealth to the next generation efficiently requires active planning.
Keep the portfolio working
Investment management in retirement is different from accumulation. Sequencing risk, drawdown rate and capital preservation all matter.
Review regularly
Life changes in retirement, health, family, legislation. Annual reviews keep the plan current.
The 2027 change
The Finance Act 2026 changes the retirement income calculation.
For many people in retirement, the pension was the last major asset outside their taxable estate. From 6 April 2027, that changes. Unspent pension funds will be brought within the scope of inheritance tax at 40%.
This affects the order in which you should draw on your assets. If your estate is likely to be subject to inheritance tax, drawing down your pension first, rather than preserving it, may produce a significantly better outcome for your beneficiaries.
People already in retirement who built their plan around the pension-as-IHT-shelter model need to revisit their assumptions before April 2027. The decisions are not difficult once the numbers are modelled clearly, but waiting reduces the options available.
Common questions
Questions we hear most often.
How much can I safely draw from my pension each year?
There is no universal answer. The right level depends on your total assets, income from other sources, expenditure, how long your retirement may last, and your estate objectives. Cash flow modelling is the only reliable way to answer this for your situation.
Should I be drawing from my pension or my ISA first?
The Finance Act 2026 changes have made this more important. If your pension will be subject to inheritance tax on your death, it may make sense to draw from it more aggressively now and preserve ISA or other assets. Regulated advice is essential before changing your drawdown strategy.
Do I need an annuity, or is drawdown better?
Drawdown gives flexibility and the ability to pass residual funds to beneficiaries. An annuity gives certainty of income for life. Many people benefit from a combination.
How do I plan for the possibility of needing care?
Care planning starts with understanding the costs, the means-test thresholds and the options available. The key decisions concern which assets to preserve, how to structure ownership, and whether to self-fund. It is best approached as part of a broader later life plan.
The first conversation is free
Make sure your retirement plan still works.
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.