5 steps for checking you're on track to fulfil your retirement dreams

Retirement is often the central focus of long-term financial planning. It’s a time to pursue lifelong dreams and enjoy your hard-earned freedom after decades of work.

Whether retirement is just around the corner or still several years away, it’s important to check you’re on track to achieve your goals and live the lifestyle you’ve envisioned.

By reviewing your plans now, you can identify any gaps, make informed adjustments, and gain confidence that your finances will support your ideal retirement, whatever that looks like for you.

Read on to discover five steps that can help you check you’re on track to achieve your retirement dreams.

1. Clarify your dreams, goals, and targets

One of the most important steps in making sure you’re on track to achieve your retirement dreams is to clarify exactly what those dreams look like. This might include:

• Choosing a retirement date or deciding when to start gradually stepping back from work

• Deciding where you’d like to live, whether it’s downsizing, relocating, or staying put

• Planning big, once-in-a-lifetime trips

• Setting aside funds to help children or grandchildren with education or property costs

• Leaving a legacy for your family or an organisation that you want to support

• Pursuing hobbies, volunteering, or even launching a passion project.

Once you have a clear idea of what your ideal retirement looks like, you can factor in other expenses that will also affect your budget, such as day-to-day living costs and potential social care.

Of course, all the costs of your goals and living expenses are estimates rather than definitive figures, but a financial planner can work with you to find a range of targets based on your lifestyle and aspirations.

They can also factor in variables outside of your control, like inflation, life expectancy, and market performance, to give you a comprehensive understanding of just how much you may need to retire comfortably.

Once you’ve defined your goals, you’ll have a clear target to work towards. This can help give your planning purpose and structure, and can guide you in making decisions that bring those dreams closer to reality.

2. Check your National Insurance contributions

To receive the full State Pension, you need 35 qualifying years of National Insurance contributions (NICs). If you have fewer than 35, your State Pension will be reduced, and with fewer than 10 years, you won’t qualify at all.

You can check your record on the UK government website, and if there are any gaps, you can make voluntary contributions going back up to six tax years.

While the State Pension may not fund your entire retirement, it can provide a reliable foundation. So, it’s important to understand what you’re entitled to and take steps to protect or boost it where possible.

A financial planner can help you assess your expected State Pension, identify any gaps in your record, and determine whether it’s worth making additional contributions.

They can also show you how your State Pension fits into your overall retirement strategy and help to ensure your income is sustainable, tax-efficient, and aligned with your goals.

3. Review your pension pots

Your pension is likely to be your primary source of income in retirement, so it’s a good idea to review it regularly to ensure it’s on track to support your ideal lifestyle.

A financial planner can carry out detailed pension reviews, which assess the value of your current pot, project future growth, and identify any shortfalls early.

They’ll also evaluate your risk tolerance, taking into account how close you are to retirement, your income needs, and your broader financial goals. If you’re approaching retirement, they can help you adjust your investment strategy to reduce unnecessary risk while still aiming for sufficient growth.

4. Explore alternative sources of retirement income

In addition to your pension, you may have other sources of income in retirement that can play a valuable role in supporting your lifestyle and financial goals.

These alternative income streams can help you manage risk, improve efficiency, and provide more flexibility.

They might include:

• Income or withdrawals from investments

• Rental income from buy-to-let properties or holiday lets

• Cash savings and tax-efficient accounts, such as ISAs.

A financial planner can help you assess how best to use these sources in combination with your pension. They’ll consider the tax implications, the sustainability of each income stream, and how to draw on them in a way that aligns with your goals.

5. Adjust your strategy as needed

Once you’ve reviewed all the key components of your retirement plan, you’ll have a clearer picture of whether you’re on track to meet your goals.

If there’s a shortfall or if your circumstances or ambitions have changed, you may need to make some adjustments to stay on course.

This could involve increasing your pension contributions or exploring alternative saving or investment strategies. You can even make small adjustments to your retirement plan, such as continuing to work part-time for a year or two to boost your savings.

A financial planner can help you weigh up these options and recommend different strategies that align with your long-term goals, which can help you get to where you need to be.

To speak to a financial planner, get in touch.

Email info@mlpwealth.co.uk or call us on 020 8296 1799.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.