Cost of delay when saving for retirement

Author: Paul Orrey

Chartered Financial Planner & Chartered Wealth Manager

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As the New Year approaches, many people start thinking about their resolutions. While most of these resolutions are related to personal well-being, it’s also a great time to consider your retirement planning.

The start of a new year provides an excellent opportunity to review your financial goals and plan for your future.

The state pension is projected to make up most of the retirement income for at least half of the UK. The Government has now announced that the State Pension will increase with the “Triple Lock” in April 2023 and the full pension will rise to £11,502 pa. However, for most people, the State Pension will not be available until they are 67 or 68. In addition we need to be aware that the State Pension could change for the worse in the future.

The State Pension will only cover the basics. A “moderate” spending lifestyle in retirement is considered as £23,300 for a single person or £34,000 for a couple. This means that an “income shortfall” will need to be met from elsewhere.

The National Retirement Forecast published in 2023 identifies that only 36% of the UK adult population are on track for a comfortable retirement. In addition, 35% are at risk of falling below the threshold for a minimum retirement lifestyle.

You may already have pensions, investments and savings to cover some of this income shortfall, but will these be enough?

We can review your existing provisions and provide you with cash flow modelling to identify any shortfalls in your retirement planning. We can work with you in taking the steps needed to achieve your objectives, including helping put you on course for a comfortable retirement.

In the current cost of living crisis, it can be difficult to put money aside for retirement, but starting your planning earlier can provide better value than delaying. Pension planning is not the only way to save for retirement but there are tax advantages. Pension contributions attract individual tax relief of 20%, 40%, 45% and in some circumstances even 60%.

Don’t delay – start your retirement planning today as part of your New Year resolutions for 2024.

If you need help with retirement planning, please speak to our financial planning team on 01223 233331, or email


Opinions constitute our judgment as of this date and are subject to change without warning.  The value of investments and the income from them can go down as well as up, and you may not recover the amount of your original investment.

The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.

The Financial Conduct Authority does not regulate tax planning.

The information contained within this blog is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing.  Levels, bases and reliefs from taxation may be subject to change.

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