The 3 Most Important Retirement Questions to Ask Yourself

"Retirement isnt an age - it's a financial milestone."

If you’re beginning to wonder when you can retire – and more importantly, whether you can afford to – you’re not alone. For many people across the UK, retirement planning is one of the most significant financial decisions they'll ever make. But knowing when the time is right involves more than simply checking your pension pot.

To feel confident about stepping away from work, you need clarity on a few key questions. In this post, we’ll explore the three most important retirement questions you need to ask yourself—with UK-specific insight and practical examples to help you get started.

How much Income will I need to live the life I want?

This is your lifestyle benchmark.

Retirement isn’t just about getting by; it’s about living comfortably—and ideally, doing more of what you love. But how much is enough?

According to the Pensions and Lifetime Savings Association (PLSA), the estimated annual income needed for retirement in the UK (2024/25) is:

Lifestyle	Annual Income Needed (Single)	Couple
Minimum	£13,400	£21,600
Moderate	£31,700	£43,900
Comfortable	£43,900	£60,600

These figures factor in the cost of food, travel, hobbies, holidays, and even home maintenance. But your personal number may be different. Think about:

• Will you still have a mortgage or rent?

• How often do you plan to travel?

• Will you support children or grandchildren?

• What hobbies or experiences do you want to enjoy?

And don’t forget inflation: If your desired lifestyle costs £30,000 today, you might need £40,000 or more in 15 years just to maintain the same standard of living.

Where will the Income come from?

Once you’ve identified your target income, the next step is working out how you’ll fund it.

In the UK, most retirees draw from a mix of sources:

State Pension

Worth up to £11,973 per year (2025/26) if you qualify for the full amount.👉 Check your forecast: - https://www.gov.uk/check-state-pension

Workplace and Private Pensions

Defined Contribution (DC): You draw income from invested pension pots (e.g. SIPPs, personal pensions).

Defined Benefit (DB): A guaranteed income for life, often linked to your salary.

ISAs and Investments

Tax-free income from ISAs can be a useful supplement, especially when managing tax thresholds.

Property or Other Assets

Rental income, downsizing proceeds, or equity release can all be considered as part of your retirement strategy.

The key is diversification. Relying on one income stream may leave you exposed to market volatility or tax inefficiencies. A personalised plan ensures you use your assets tax-efficiently and sustainably.

What if Life throws me a Curveball?

Retirement isn't always smooth sailing. Life has a habit of throwing surprises your way. How prepared are you for them?

Longevity Risk - You could live well into your 90s – will your money last? Click here to use the ONS life expectancy calculator

Inflation Risk - Inflation chips away at your purchasing power. Your plan should factor in rising living costs.

Investment Risk - If markets dip early in retirement, it can permanently reduce your portfolio value (known as sequence of returns risk).

Health or Care Costs - Unexpected healthcare or long-term care needs can impact your financial position significantly.

That’s why flexibility is key. A robust retirement plan should include:

• A cash buffer for emergencies (6–12 months’ expenses)

• Inflation-linked income sources

• Investment strategies that mitigate volatility

• Regular reviews and updates as your life evolves

" A well structured retirement plan doesn't need to predict the future - it just needs to adapt to it."

Conclusion: Build Clarity, Not Just Numbers

Retirement is not a one-time decision—it’s a journey. By answering these three powerful questions:

1.         What lifestyle do I want?

2.         Where will the money come from?

3.         What if things don’t go to plan?

You’ll gain confidence that your future is in safe hands.

Next Steps: Your Retirement Plan starts here

If you're unsure where to begin—or if you're on track—working with a trusted financial planner can make all the difference.

Ready to explore your options? Book a free, no-obligation retirement planning consultation to map out a plan that suits you, your family, and your goals.

Financial Adviser Cheshire and Pension Adviser Chester

XV Wealth are an Independent Financial Adviser based in Chester, Cheshire.

About us: XV Wealth is an independent financial advisor based in Chester. As independent financial advisers, we can provide independent and unbiased financial advice. We provide independent financial advice, pension advice,investment advice, inheritance tax planning and insurance advice. If you want to speak to a Financial Advisor, we offer an Initial Financial Consultation without cost or commitment. Meetings are held either at our offices, by video or by telephone. Our telephone number is 01244 62 88 71. XV Wealth Financial Advisers email is info@xvwealth.co.uk.

This article is for information purposes and does not constitute financial advice, which should be based on your individual circumstances.

The value of investments and the income from them can go down as well as up, so you may get back less than you invest. Past performance is not a guide to what might happen in the future.

The value of pensions and any income from them can fall as well as rise. You may not get back the full amount invested.