How to plan a stress free retirement

I often meet women who are financially disadvantaged in retirement and I hear on a regular basis 'I wish I had met you years ago'!

In my role as a financial advisor I see so much financial stress for women as they approach retirement and what makes me sad is this could have been prevented.

Have you considered what you might like to do in your later years?

I know I have! It revolves a lot around travelling and spending time with family and friends. Plus looking at hobbies and things I want to accomplish off my ever growing bucket list!

If you haven't done your bucket list - sit down and write all the things you want to do. It can be a great way to focus on life goals.

Retirement should be a time to relax and enjoy the fruits of a long career, it should not be a source of anxiety—especially when it comes to finances.

Some startling facts about women and retirement:

• Did you know that 45% of women in the UK have no personal pension savings?
• There is a big retirement savings gap as women typically have about 30% less saved for retirement than men.?
• Women tend to have longer life spans than men. They live on average around five years longer, so they need more in pensions to achieve a comparable level of comfort. Approximately 57% of all those ages 65 and older are female

Many women face unique challenges in retirement planning, often exacerbated by factors during their lifetime like the gendar pay gap or when taking a career break caring for children.

I think it's important that mid-career and younger women are educated and empowered to make financial decisions that will set them on course for greater security in the future. It's never too early—or too late—to take control of your financial future.

I have broken down this advice into age groups to make it easier to hone in on the advice relevant to you.

What to Do in Your 20s and 30s

1. Start a pension plan early

If you are employed, ensure you're enrolled in your company's workplace pension scheme if that is available to you. Currently you must be between 22 and state pension age?and earning at least ￡10,000 per year, or ￡833 per month, or ￡192 per week. Many companies have enhanced pension schemes. If you are self-employed, there are tax benefits when you contribute to a pension; talk to your accountant. Get advice from a financial advisor.

2. Maximise pension contributions

Aim to contribute at least the minimum required, but if possible, increase your contributions. The earlier you start, the less you'll have to save each year to reach your goal.

3. Invest with growth in mind.

In your early career, get advice about investing. Its such a big topic so I am not covering it here in detail. Everyone will have different attitudes to risk, sit down with a qualified financial advisor and discuss your situation.

Mid-Career: Balancing Responsibilities and Retirement

I have worked with a lot of women in their 40s and 50s who have been faced with additional financial stress as they juggle family responsibilities with their careers. Career breaks for childcare or caring for elderly relatives can reduce lifetime earnings and pension savings. Also divorce or the death of your partner can also create a huge impact on your pension and retirement planning. I meet a lot of women who have little or no pension provision. However, there are still ways to boost your financial future.

What to Do in Your 40s and 50s

1. Keep contributing to your pension

Even if you take time off work, keep up with your pension contributions as much as possible.

2. Check your state pension forecast

Currently, you need 35 qualifying years of National Insurance contributions to receive the full State Pension. Make sure there are no gaps in your contributions. You can check your National Insurance record on the UK government website here . If you've had career breaks, consider paying voluntary National Insurance contributions to fill in gaps in your pension record

3. Increase your contributions

If possible, increase your pension contributions as your salary increases or when significant expenses (like childcare) decrease. This is a great way to add more to your pot.

Approaching Retirement: What to do if you haven't saved enough

If retirement is looming and you're worried that you haven't saved enough, it's important not to panic. While there may be less time to build up a large pension pot, you can still take several steps to improve your financial situation.

What to do in your 50s and 60s:

1. Maximise pension contributions

Check how much you can add to your pension. If you have more disposable income now, use this limit to boost your savings.

2. Delay retirement if possible

If you're healthy and able, consider working for a few more years. Delaying retirement allows you to continue earning and contributing to your pension and reduces the number of years you'll need to rely on savings.

3. Access the state pension later

The longer you delay claiming your State Pension (beyond the age of 66 or 67, depending on your date of birth), the more you'll receive when you do claim. For each year you defer, your pension increases by approximately 5.8%. Many women I speak to do not know you can do this and sometimes it is a good way of increasing your pension.

4. Downsize your living costs

If your pension savings are low, think about downsizing your home or moving to a less expensive area. This can free up equity to supplement your pension or reduce your monthly living expenses. Look at all your outgoings and check for where you can make savings to add to your pension too.

5. Consider part-time work

Many women choose a phased retirement, transitioning into part-time or freelance roles. This can help you continue earning an income while enjoying more free time. You can create a balanced lifestyle this way. Increasingly I have noticed more women doing this preferring to still work as they enjoy it!

Additional steps for reducing financial stress in retirement

Regardless of where you are on your retirement journey, there are general financial habits that can help reduce stress:

Create a retirement budget

Calculate your essential living costs and compare them to your expected income from pensions, savings, and other sources. This will give you a clearer picture of your financial needs. If you are no longer working your outgoings will be less as you won't have many of the expenses that come with working e.g. travel, work clothes etc.

Boost your financial knowledge

Understanding pensions, investments, and financial planning can make a huge difference. Seek financial advice with a qualified financial advisor, and use resources like the UK government's Pension Wise service.

Final Thoughts: Take control of your financial future

Financial stress in retirement is a genuine concern for many women, but you can reduce that anxiety with careful planning and proactive steps. Whether just starting your career or nearing retirement, focus on building your pension savings, managing investments, and making intelligent financial decisions. The key is to act now and prioritise retirement planning, no matter your stage of life.

By taking control of your financial future, you'll be better equipped to enjoy a comfortable and fulfilling retirement.