Retirement Planning in the UK: How to Build a Sustainable Income for Life

Retirement is one of the most significant challenges we will face in our lives. The landscape has undergone substantial changes over the past generation. Where our parents or grandparents might have worked for one employer and received a guaranteed pension for life, most of us now retire with a pot of money that needs to provide income for decades.

The question is no longer “When can I retire?” but “How do I make my money last?”

The New Challenges of Retirement

The traditional retirement age of 65 is moving upwards. The state pension age is heading to 68 and may rise into the 70s. At the same time, we are living longer. While that’s good news, it brings financial challenges:

  • Longevity risk – ensuring income lasts for a 25–30 year retirement.

  • Inflation – rising costs erode purchasing power.

  • Market volatility – investments can go up and down, affecting withdrawals.

  • Tax changes – allowances and rules continue to evolve.

These factors mean retirement planning today requires a different approach.

Strategies for Building Sustainable Income

The FCA Thematic Review on retirement income emphasises sustainability. In the past, retirement income was guaranteed through defined benefit pensions. Today, most people rely on defined contribution pensions, ISAs, and investments.

Creating sustainable income means:

  • Diversifying income sources.

  • Setting realistic withdrawal strategies.

  • Managing sequencing risk (the order of returns).

  • Keeping a balance between growth and security.

Tax Efficiency in Retirement

Sustainability is only half the picture; how you draw income matters just as much.

  • Using pension tax-free cash wisely.

  • Drawing from ISAs for tax-free income.

  • Making the most of personal allowances, dividend allowances, and capital gains allowances.

A carefully structured withdrawal plan ensures you pay no more tax than necessary, helping you keep more of your money.

Lifestyle and Mindset

Retirement is deeply personal. It’s not just about the numbers, but about your values, aspirations, and the life you want to create.

Some people want to retire early and travel. Others prefer to continue working part-time or focus on family. Your financial plan should reflect the retirement that matters to you.

Why Ongoing Advice Matters

Planning for retirement isn’t a one-off exercise. Circumstances change—both before and after you retire.

  • Before retirement – plans may need adjusting as your career, business, or savings change.

  • In retirement, income needs, health, and tax rules all evolve. Ongoing advice helps you adapt, stay tax-efficient, and maintain a sustainable income.

A trusted financial planner in Bristol provides the reassurance that you’re not navigating these decisions alone.

Conclusion & Next Steps

Retirement today is more complex—but also more flexible—than ever before. With the right plan, you can create a sustainable, tax-efficient income that aligns with your lifestyle goals.

If you’d like to discuss your retirement plans, contact our Bristol-based financial planners at Ifamax Wealth Management today.

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

 

Ashton Chritchlow