Planning Your Finances In Retirement

17.01.2018 by Jim Ker

Wondering how to plan your finances now you’re retired? If you have been used to having a regular income, the change can seem a bit daunting, but there are a few ways to make that change smoother and they shouldn’t take you long to put in place. Read our findings below:

Take stock

Think about all that you spend, including those one-off yearly payments and divide it into the “must haves” and “would like to haves”. It’s important to be honest here and ensure that those sneaky luxuries are not being considered essential when in reality, they’re not. Regular checks of your personal finances are a good way to make sure that there are no forgotten outgoings or nasty surprises.


All those items in the “must haves” pile need to be paid for, but you don’t want to be paying more than you have to. Take time out, make yourself comfortable and see if you can change suppliers to get these services cheaper, or even negotiate a better deal with your current supplier. Use comparison sites, but remember to ring around those companies that may not be as visible on comparison sites as well. Take your time and do your research. Try to do this at least once a year to make sure you always have the best deal available.

Now understand your income

Make a note of all the income you have along with any investments. This includes your state pension and any work pensions.

Make sure that you have no forgotten income. Old pensions can be traced by contacting the Pension Tracing Service on 8045 6002 537 or visiting the Department of Work and Pensions website by clicking here and working through the online tracking process.

It’s also a good idea to look at any additional benefits in retirement that you might be able to claim as the extra income could help in the long run.

Planning your future income is essential

This is where you need to strike a balance between having enough cash available for your everyday, short-term outgoings, but making the most of your longer term investment options to top up the cash pot for future years.

Investment plans may be considered a medium to long-term practice so by locking away some of your money for a longer period, you could benefit from higher bonuses which in turn can increase the amount of cash available to you later. However, this may mean it is not available to you in the short term should you need it.

The best of both worlds

What about those unexpected outgoings? Look for investment options that will allow you to invest for a longer term and make the most of any bonuses or returns with the flexibility to withdraw an income if needed. Some investment options offer a 5% income withdrawal per year with no penalty and no tax liability (until the closure of the investment). This could be used to top up your monthly income, use it for a significant purchase or it could be saved for a rainy day. You can often accumulate these annual drawdowns. So, for example, you could wait until year 3 and draw down 15%.

Considering your financial options in retirement can be daunting. Planning ahead and making sensible considerations early is a great way to reduce your financial challenges. You can get a lot more information and advice on ways to save money and plan for your retirement at the Money Advice Service.


To read more of our blog content on how you can improve your saving skills, click here.

Please Note: You must confirm you have read the key facts, before downloading this document.

Key Facts about our services and costs

1. The Financial Conduct Authority (FCA)

The FCA is the independent watchdog that regulates financial services. This document is designed by the FCA to be given to consumers buying certain financial products. You need to read this important document. It explains the service you are being offered and how you will pay for it.

2. Whose products do we offer?

We offer products from the whole market

We only offer products from a limited number of companies

We only offer our own products

3. Which service will we provide you with?

We will advise and make a recommendation for you after we have assessed your needs.

You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.

We will provide basic advice on a limited range of stakeholder products and in order to do this we will ask some questions about your income, savings and other circumstances but we will not:

  • conduct a full assessment of your needs;
  • offer advice on whether a non-stakeholder product may be more suitable.

We can only offer products from Kingston Unity Friendly Society. These products will enable you to:

  • protect yourself and your loved ones in the event of death
  • save and invest with the added benefit of protecting yourself and your loved ones in the event of death
  • provide benefit cover in the event of sickness

4. What will you have to pay us for our services?

Normally, if you buy a financial product direct from us, there will be no payments such as commission or fees payable. If there are any commission or fees payable, we will tell you how we get paid and the amount before we carry out any business for you.

5. Who regulates us?

Kingston Unity Friendly Society, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and .the Prudential Regulation Authority. Kingston Unity Friendly Society’s FCA Registered Number is 110056.

Kingston Unity Friendly Society permitted business is advising and arranging life assurance and pensions business.

You can check this on the FCA’s Register by visiting the FCA’s website or by contacting the FCA on 0845 606 1234.

6. What to do if you have a complaint

If you wish to register a complaint, please contact us:
…in writing Write to Kingston Unity Friendly Society, Complaints Department, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. …by phoneTelephone (01924) 240164

If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.

7. Are we covered by the Financial Services Compensation Scheme (FSCS)?

We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.

Most types of insurance business are covered for 90% of the claim with no upper limit.