
Is Retirement Moving Further Out of Reach? These Financial Moves Can Help
Retirement may seem far away, but for many people, it is quickly becoming impossible.
In fact, the state pension age in the UK is likely to rise to 68 by the mid 2040s, leading many families to worry about how they will retire comfortably.
If you were born after April 1977, you will need to work an additional 8.8% of your life to get your pension. With rising rents, high inflation, and the ongoing cost-of-living crisis, it's understandable that many people are worried about their financial future.
In 2025, managing finances is becoming more complex. Many individuals may need to delay retirement, but the good news is that there are steps you can take now to protect your financial well-being.
This article will look at some practical financial strategies for people in Exeter to help make retirement possible, even when it feels more challenging than ever. Let’s start.
Is Retirement Moving Further Out of Reach?
The government plans to raise the pension age to 68. This shift, along with rising rents, high inflation, and increasing living costs, makes retirement feel further away for several people in the UK. While these issues may seem out of your control, you can take steps to mitigate their effects.
Shockingly, the latest report from the IFS found that the state pension age in the UK will change from 66 to 67 in just over 15 months. This shows that many people now realise they have to work longer than they expected before they can retire.
The financial pressure is especially tough for those in their 30s and 40s who’re juggling work and family life. With the state pension age increasing, many will require to work longer than expected before they can collect their pension.
It’s essential to take action now. Small financial changes today can greatly impact your future stability. By increasing your pension contributions, seeking advice, and thinking about estate planning, you can build a strong foundation for a secure retirement, even if it’s years away.
More people recognise how their lifestyle decisions impact their future financial health. Whether it’s reviewing spending habits or investing in property or stocks, preparing for retirement involves managing all aspects of your financial future, not just your pension fund.
Financial Moves to Secure Your Retirement
Here are some financial moves that will help you secure your retirement:
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Review Your Pension Contributions
One important step you can take right now is increase your pension contributions. The earlier you start, the more you can benefit from the power of compound growth. Even small growth can make a huge difference in your savings in the future.
Many people do not realise how much extra they could save for retirement, especially those in their 30s and 40s. As the pension age increases, it is essential to review your pension plans and make sure you are contributing enough to achieve a cosy retirement. Talk to a financial advisor to ensure you’re on the right track.
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Seek Independent Financial Advice
Rising costs and the government’s planned increase in the state pension age to 68 by the mid-2040s have prompted many to seek independent financial advice.
“We’re seeing growing concern among clients about whether they’ll be able to retire comfortably and when,” says a spokesperson from PMW Financial Planners, a UK-based firm that advises families on long-term financial planning, including pensions, trusts, and inheritance.
The trend reflects a broader shift in financial behaviour, as more households begin to reassess not just day-to-day budgets but also their long-term security. With pension age and financial challenges rising, more individuals see the need to plan for their financial future. This planning is essential for their current situation and any future financial needs they may have.
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Explore Estate Planning
Estate planning is vital for everyone, not just wealthy people. It helps you protect your financial future and keep your belongings safe. By using trusts and inheritance plans, you can make sure your assets are passed on smoothly and even grow as time goes.
Start by looking at what you own, such as property or savings, and how these fit into your retirement goals. Good estate planning can help you manage your wealth wisely and minimise your tax liability. In this way, you can enjoy a pleasant retirement without worrying about money.
Interestingly, recent data from the Institute of Professional Will Writers (IPWW) revealed that around 60% of adults in the UK are expected to be without a will. This shows the importance of planning your estate. Estate planning helps protect your financial future and ensures your assets are distributed as you plan.
Conclusion
The rising state pension age and the increasing cost of living make retirement feel far away. But, you can prepare for a secure retirement by making smart financial decisions. It’s best to start planning regardless of whether you’re in your 30s, 40s, or older.
You should review your pension contributions, seek professional advice, and think about estate planning to ensure your financial security. These steps can help you protect your retirement plans, even in the face of financial challenges.
Retirement might seem far away, but taking steps now will help you feel more secure and confident about your future. Start planning your finances today. Your future self will thank you for it.