How to Plan for a Comfortable and Worry-Free Retirement

Planning for retirement is one of the leading financial goals many of us face.

According to a September 2023 report by the Financial Services Compensation Scheme (FSCS), nearly 70% of UK adults worry about whether their savings will be enough to support them in later life.

It’s no surprise that one of the most common questions people ask is:

“Will I have enough income to enjoy a comfortable retirement?”

The Million-Pound Question: How Much is Enough?

The answer depends on several factors.

External influences like life expectancy, inflation, tax, and market performance play a significant role. But equally important are personal considerations:

  • Your expected retirement income and spending needs

  • Your current savings and investments

  • Your comfort level with financial risk

  • Your personal values, aspirations, and lifestyle goals

For example, one person may prioritise travelling in retirement, while another may focus on maintaining a simple, quiet life. This means the amount of money you need to retire comfortably can vary significantly from one person to the next.

Using Benchmarks to Guide Your Goals

If you’re unsure where to start, the first thing you should do is get a better understanding of your current expenditure. You can find a template to help you work this out here https://www.moneysavingexpert.com/banking/budget-planning/. Your personal situation is going to be the best benchmark you can use for accurate planning going forwards as expenditure and the definition of ‘comfortable lifestyle’ varies widely from person to person.

You can also refer to the Retirement Living Standards developed by the Pensions and Lifetime Savings Association (PLSA) can provide a helpful guide (but shouldn’t be seen as the answer for your personal circumstances!).

These standards outline three levels of annual retirement expenditure based on lifestyle choices:

  • Minimum: Covers essential needs.

  • Moderate: Adds more flexibility and comfort.

  • Comfortable: Includes luxuries like international travel and dining out.

For instance, this research indicates that a comfortable lifestyle requires an estimated £43,100 annually for a single person or £59,000for a couple (excluding taxes).

Is a Comfortable Retirement Achievable?

For many, the state pension will be crucial to their income. The full state pension currently provides around £11,500 per year for a single person or £23,000 for a couple. Based on the assumptions behind this research, to achieve a moderate retirement, you’d need to generate an additional £20,000 annually, rising to £36,000 for a comfortable retirement.

But this isn’t the whole story — tax needs to be factored in. A couple would need approximately £48,000 gross annual income to achieve a moderate income after tax. For a comfortable retirement, this figure increases to £68,000.

To generate these income levels sustainably, financial planners often recommend withdrawing no more than 4% of your retirement pot annually. This means:

  • A couple aiming for a moderate retirement would need around £625,000 in savings and investments.

  • For a comfortable retirement, they’d need approximately £1.125 million.

However, what feels like a comfortable lifestyle to one person might feel modest to another, and therefore, although these figures might be a guide, they shouldn’t be assumed to be the answer. Your income goals and the assets needed will reflect your specific aspirations and needs, which means they could be lower or higher than the figures generated by this research. The other important factor is how your savings and investments are held – money held in an ISA will be tax free at the point of withdrawal, whereas pension funds will be taxable at your marginal tax rate (after tax free cash is taken). Paying 20% or 40% tax (or not) will have a substantial impact on the amount of savings you require to fund your retirement!

Taking the Stress Out of Retirement Planning

At Ifamax Wealth Management, we believe retirement planning is about more than just hitting a target generated by generic research. These figures can feel overwhelming, leading many to questions around whether retirement is achievable.

Our approach focuses on creating a personalised, sustainable strategy tailored to your unique circumstances. Planning effectively lets you enjoy peace of mind, knowing your income will last throughout your retirement years.

Key strategies include:

  • Tax-efficient savings vehicles: ISAs and pensions can help reduce tax liabilities, boosting your retirement income or lowering the amount you need to save.

  • Ongoing advice: Regular reviews ensure your plan stays on track and adapts to changing circumstances.

Navigating a Changing Landscape

The retirement landscape is constantly evolving. For example, the Financial Conduct Authority (FCA) recently reviewed retirement income sustainability, influencing how advisers approach long-term planning.

Staying ahead of these changes is crucial; partnering with an expert adviser can make all the difference.

Partner with Ifamax Wealth Management

Planning for retirement doesn’t have to be stressful. At Ifamax Wealth Management, we specialise in helping clients build retirement pots that align with their needs and aspirations. From maximising tax-efficient savings to ensuring sustainable withdrawals, our expert team is here to guide you every step of the way.

With our support, you can confidently approach retirement, knowing your future is secure.

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.  


Past performance is not indicative of future results and no representation is made that the stated results will be replicated.

Ashton Chritchlow