A quarter of Brits who plan to retire before 2028 are not fully prepared (Image: Getty)
Thousands of people in the UK could be heading towards retirement without adequate preparation, an expert has warned. Almost a quarter of Brits (24%) who plan to retire by 2028 have not taken any steps in the last 12 months to ready themselves for it, according to research from Scottish Widows.
For those retiring even sooner, in 2026, only 21% have made a retirement plan, and only 19% have spoken to a financial adviser. Many appear to have also forgotten to share plans with loved ones, with only 19% doing so and only 15% have changed or reduced their working hours. While 13% have consolidated their pension pots, only 12% have bought an annuity, and only 8% have downsized.
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The expert recommends downloading the HMRC app (Image: Getty)
Although getting on top of retirement plans is key, many are resisting retirement altogether. 12% of baby boomers say the reason they don’t plan to retire next year is that they cannot afford to, while 9% hope to keep working, with 4% worried about losing their sense of purpose.
Robert Cochran, pension expert at Scottish Widows, said: “For those planning to retire – whether that’s a goal for 2026 or the next couple of years – asking those all-important questions about your financial future now is critical.”
He added that the sooner you understand the entirety of your retirement finances, the better placed you are to decide your own future.
“Check your state pension allowance and dive into any workplace and private pension pots. Once you know how much you have, you can start thinking about your income options.
“An annuity, which provides a guaranteed level of income through life like a salary, might be for you, or you might prefer the flexibility of keeping your money invested and drawing from it as you need.” He emphasised that it is never too early to start thinking about what you want retirement looks and feels like for you.
Find out if you’re on track
Mr Cochran’s first piece of advice for anyone looking to retire this year is to assess whether they are on track financially. By doing this, you can determine the age at which you can afford to stop working and, more importantly, how long your pension fund will sustain you throughout retirement.
The pension expert recommended using Scottish Widows’ retirement calculator to find out if you are on track.
Download apps
Mr Cochran recommended downloading your pension provider’s app. If you are in any private or workplace schemes, this could apply to you. The expert also advises checking your state pension forecast.
He recommends downloading the HMRC app, which will share your state pension details, what you’re on track to receive, and when you will receive it. Mapping this against Pensions UK living standards will give you an idea of how much you will need during your retirement period.
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He said: “For example, the cost of a minimum retirement living standard for two people is £21,600 a year, while a comfortable lifestyle for two people costs £60,600 a year. You can also find a range of digital tools and games online which can help you learn more about the benefits of planning your future finances.”
Know your state pension plan
Retirees should be pleased to know the UK State Pension rose in April 2025 by 4.1%, in line with the Government’s triple lockpolicy. Mr Cochran said this means that, “for those eligible, the full new State Pension now comes in at £230.25 a week (up from £221.20).”
This figure is set to increase again in April 2026, bringing the rates for the full new State Pension and the full basic State Pension up to £241.30 and £184.90 per week, respectively.
Track lost pots
The expert suggests using the Government’s free pension tracing service to find any lost pots with your name on.
He said: “To get started, gather all the pensions paperwork you do have, and make a list of every employer you’ve worked for or private pension you’ve opened. The pension tracing service will tell you who ran the scheme at the time, and how to contact them.
“Then, you can get in touch and check whether they have any retirement savings in your name to help get the clearest picture of your retirement savings to date.”
Think about drawdown
Mr Cochran added that, at 55, you can start taking your pension flexibly, up to 25% tax-free (up to a limit of £268,275). Doing this offers the freedom to take what you need, when you need it.
However, he warned that “it’s important to remember that your investments can go down in value as well as up and that depending on how you access your savings, MPAA (Money Purchase Annual Allowance) may apply.”
Have a look at annuities
Ultimately, the Pension Expert said: “Pension annuities are back in vogue – as it were – with lifetime annuity rates surging to a 10-year high last year. When you buy an annuity, you’ll get a guaranteed taxable retirement income for the rest of your life.”
The expert stressed that plenty of options are available, giving pension savers different options depending on personal circumstances. He advised speaking to a professional to work out what is best for you.