Retirement - frequently asked questions

Planning for retirement can raise many questions. Explore our FAQs for clear, practical answers to help you make informed decisions about your future.

I'm 55 and would like to retire at 60. I have £200k that I'd like to invest over the next 5 years. Where should I invest the money?

At Tees, your Financial Adviser will consider:

your investment strategy – this will reflect when you’ll need the money and how much risk you’re comfortable taking
your portfolio – it’s best to avoid putting all your savings into one investment – diversification is key, both globally and by sector
the products available to you – using tax-efficient wrappers such as ISAs and pensions where appropriate
a financial plan to help balance investment growth with protecting your capital

As retirement approaches, we will review your portfolio regularly to ensure it still aligns with your goals.

When I retire, do I need life assurance and/or critical illness insurance?

It is important to think about where your income currently comes from, do you have an emergency fund? There are several factors to consider when deciding if you need insurance:

your needs often change once you retire, do your current policies work with your changing needs?
do you have any financial commitments? If you no longer have financial dependants or a mortgage, life cover may be less of a priority
critical illness cover generally becomes more expensive with age and may no longer represent good value
income protection typically ends at retirement

Ensure you review your overall financial position before cancelling any existing policies.

I'm 52. Any tips for financial planning to retire as early as possible?

The old adage goes ‘The best time to plant a tree is 20 years ago, the second-best time is now.’ Small changes made today can make a meaningful difference over the next decade:

understand how much you’ll need each year in retirement

maximise pension contributions, where possible while you’re still working
make full use of ISA allowances for tax-efficient savings
pay down an expensive debt before retirement
review your retirement plans regularly to keep them on track
a cashflow forecast can show whether your target retirement age is realistic

How do I plan my retirement income? How much will I need?

start by calculating your monthly spending, think about what changes will be made in retirement – Round up what you need, just in case!
consider different stages of retirement—your spending may change over time
include all income sources, including pensions, savings and the State Pension
don’t forget inflation, tax and unexpected expenses. Keep an emergency fund
the answer depends more on your lifestyle than the size of your pension

consider your expected spending, other assets and retirement age
will you receive the State Pension or any defined benefit pensions?
think about how long your money may need to last
a personalised retirement plan and cashflow provides a much clearer answer than general rules of thumb

Speak to a Financial Adviser today – Contact us

Should I consider equity release to supplement my pension in retirement, or should I downsize?

Both options can unlock wealth tied up in your home. Downsizing may reduce your household costs while releasing capital whereas equity release allows you to remain in your home. Equity release does have long-term implications which could impact your estate and beneficiaries. Explore all options before making a decision. At Tees, our specialists regularly work with individuals exploring these options, get in touch today to discover what’s best for you.

Can I take my work pension before 65?

Many workplace pensions can be accessed from age 55 (rising to 57 from 2028), although scheme rules may vary. Taking benefits early may reduce the income available to you later. Early access could also have tax implications. Understanding how accessing your pension early may affect any future contributions, is essential. It is also important to not only understand if you have a DB or DC scheme, but also if there are any rules in place around these schemes. Speak to an adviser today to explore your options – Contact us.

Should I consolidate my pensions before I retire?

Consolidation of pensions can make your retirement savings easier to manage, reduce paperwork and potentially lower any charges. However, some pensions include valuable guarantees or benefits that could be lost when you consolidate. It is sensible to always compare investment options and costs before you transfer anything and work with an experienced Financial Adviser who can ensure you are making the best decision for you.

Read our article on pension consolidation

Am I allowed to retire before my State Pension age?

Yes, you can retire whenever you want and can afford too. There is no requirement to work until your State Pension age. You will however need sufficient income from pensions, savings or investments to bridge the gap when you stop working. It is important to consider how retiring early affects your long-term financial security. Also check whether your workplace pension can be accessed when you plan to retire. A financial plan can help assess whether early retirement is sustainable for you. Speak to one of our Financial Advisers today who can provide you with tailored advice and support – Contact us.

Do the changes to ISA rules affect my Stocks & Shares ISA?

Yes. But in many instances, no. Under the most recent guidance, 100% of a stocks and shares ISA would need to be held in cash for it to become susceptible to the new taxation rules. Holding some cash and money market funds to provide income, pay fees or buying and selling investments will not generate a tax liability. It’s important to note: