Paul Mitchell | Financial and Retirement Planning Coach
Find him here at: Your Smart Retirement Coach
One of the most common fears people face when approaching retirement is this:
“What if I run out of money?”
It’s a valid concern—and one that keeps many awake at night.
As life expectancy increases and financial markets fluctuate, it’s no longer enough to simply save for retirement. You need a plan to turn your savings into income that lasts your entire life.
This article walks you through exactly how to build a retirement income strategy that is sustainable, flexible, and uniquely suited to your lifestyle—without overwhelming jargon or expensive advice.
Why Having a Retirement Income Plan Matters
Most people retiring today can expect to live 20–30 years in retirement. That’s potentially three decades where your income must:
- Cover basic living costs
- Fund lifestyle goals (travel, hobbies, gifts)
- Adjust for inflation
- Allow for medical or care needs later in life
Having a retirement income strategy is not just about having enough—it’s about having control, confidence, and freedom.
Step 1: Know Your Retirement Numbers
Before you can create a plan, you need to know your starting point:
- Essential costs: Utilities, groceries, transport, insurance
- Lifestyle costs: Travel, dining, gifts, clubs
- Future costs: Home repairs, care, support for family
Create two categories:
- Minimum Needed Income (your non-negotiables)
- Desired Lifestyle Income (your goals and dreams)
If you’re not sure where to begin, consider using tools like the Pensions and Lifetime Savings Association’s Retirement Living Standards for realistic benchmarks.
Step 2: Inventory All Income Sources
Most UK retirees have a mix of income sources:
- State Pension (check your forecast at gov.uk)
- Defined Benefit Pensions (e.g. final salary schemes)
- Defined Contribution Pots (e.g. personal pensions or SIPPs)
- ISAs or savings
- Rental income or part-time work
Tally them up and determine when each becomes available, how flexible it is, and whether it’s guaranteed or not.
Step 3: Decide on a Withdrawal Strategy
This is the part most people find daunting. There are three main ways to draw income from pensions:
- Annuities – Provide guaranteed income for life, but lack flexibility.
- Drawdown – Allows flexibility and investment growth, but carries risk.
- Lump Sums (UFPLS) – Access your pension in chunks, but must manage tax carefully.
Most people use a blended approach, combining guaranteed income with drawdown and flexible withdrawals.
Step 4: Build in Flexibility and Safety Nets
Your needs will change over time. Your retirement income plan should be adaptable:
- Keep cash reserves (Rainy Day Pot) for emergencies
- Use “bucket strategies”—dividing funds for short, medium, and long-term needs
- Review regularly to adjust for:
- Inflation
- Health changes
- Market returns
Working with a coach can help make sense of how to design this without costly mistakes.
Step 5: Plan for Later Life and Legacy
It’s easy to focus on the next 5–10 years. But good planning means thinking longer term:
- Consider setting aside a Later Life Pot for future care needs
- Use your Inheritance Pot to plan your legacy tax-efficiently
- Review how pensions, ISAs, and property will be passed on
Step 6: Review Your Plan Every Year
Your retirement income strategy is not set-and-forget. You should:
- Check investment performance
- Adjust spending based on market conditions
- Revisit goals annually
Most people benefit from an annual financial coaching check-in—a much more affordable way to stay on track compared to full-blown advice.
How Financial Coaching Can Help
At Your Smart Retirement Coach, I offer coaching for people aged 55–70 who want clarity, structure, and support when building their retirement plan.
I don’t sell products. I help you:
- Understand your pensions and income options
- Avoid tax mistakes
- Make confident, informed decisions
- Set goals and stick to them
Real-Life Example
Mark and Julie, both 63, had saved around £220,000 in pensions, plus two ISAs. They didn’t know whether they could retire early—or how much they could safely spend.
After a free 15-minute consultation, we mapped out a coaching plan. Within weeks, they understood their withdrawal options, structured their income for tax efficiency, and felt confident taking early retirement.
Final Thoughts: It’s Your Life—Design It Wisely
Creating a retirement income plan doesn’t have to be complicated. With the right support, you can:
- Understand your income options
- Create a strategy for longevity and peace of mind
- Enjoy the life you’ve worked hard for
Book Your Free 15-Minute Coaching Call
Want to get started? I offer a no-pressure, no-obligation 15-minute coaching consultation to help you take the first step.
Because your retirement should be rich in freedom, not just finances.
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Disclaimer
These insights provide strategic coaching perspectives. This is NOT regulated financial advice. Individual circumstances vary, and it is crucial to consult qualified financial professionals for specific financial guidance.
Individual cases are illustrative and not predictive of future results. Actual savings and support needs will differ based on personal financial situations.
About the Author
Paul Mitchell is a dedicated Financial and Retirement Coach (Qualified To Chartered Financial Planner status) with over 35 years of experience in financial services. Through Your Smart Retirement Coach, he helps clients build confidence in their financial future and create fulfilling retirement lifestyles. As a retirement transition coach, I’m committed to empowering investors with knowledge, perspective, and strategic support.
Book a free 15-minute consultation to start your journey toward financial clarity.
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