Many adults in the UK worry about whether their savings will be enough to support them in retirement. This, in turn, leads to concerns about whether they will ever be able to retire comfortably and what happens if they outlive their money. Seeking financial advice for retirement can help alleviate many of these worries.
Retirement planning has changed significantly over the years. In the past, many workers benefited from defined benefit (DB) pensions, which provided guaranteed income for life. However, these schemes have largely disappeared in the private sector, leaving most people reliant on the state pension and personal savings. Given that the full new State Pension in 2024 provides only £11,500 per year (£221.20 per week), it’s clear that additional savings and investment strategies are crucial for financial security in retirement.
Recent tax and pension reforms have added further complexities, making it more important than ever to ensure that retirement income is structured efficiently. In this article, we’ll explore how financial advice can enhance retirement outcomes and whether the cost of advice is worth it.
How Much Do You Need in Retirement?
The ‘magic number’ for retirement varies significantly from person to person. While some retirees can live comfortably on £1,000 per month, others require £5,000 per month or more to maintain their desired lifestyle.
The Retirement Living Standards developed by the Pensions and Lifetime Savings Association (PLSA) offer some useful benchmarks:
- Minimum lifestyle: £14,400 per year for a single person (£22,400 for a couple)
- Moderate lifestyle: £31,300 per year for a single person (£43,100 for a couple)
- Comfortable lifestyle: £43,100 per year for a single person (£59,000 for a couple)
The basic full state pension for a couple would provide around £2,000 per month (£24,000 per year), assuming both partners qualify for the full amount. But for those seeking a moderate or comfortable retirement, private pensions, investments, and other income sources become essential.
The FCA’s Thematic Review on Retirement Income Advice highlights the importance of segmenting retirement spending into three categories:
- Basic costs – Essential expenses like housing, food, and bills
- Lifestyle spending – Holidays, leisure activities, and non-essential purchases
- Discretionary spending – Gifts, charitable donations, or major one-off expenses
A good financial plan ensures you can cover all three without running out of money in later life.
The Importance of Financial Advice in Retirement
Many retirees consider managing their own investments to save money on financial advice. However, statistics suggest that DIY investing can be risky. A report by Capital.com, published in the Financial Times, found that:
- 70% of DIY investors lose money
- 70% of trades were closed within 24 hours, and 45% within 60 minutes – indicating short-term speculation rather than long-term planning
- 60% of traders globally did not use a stop-loss strategy, reducing their ability to manage risk effectively
While investing independently may work well for some, managing money in retirement requires a different approach than investing while working. Retirees typically have a lower capacity for loss—meaning that a market downturn could have severe consequences if they are regularly withdrawing funds.
The FCA’s Retirement Income Review has emphasised the need for sustainable withdrawal strategies, tax efficiency, and estate planning to ensure good client outcomes.
What Does Good Financial Advice Look Like in Retirement?
A financial planner does more than just manage investments. They help retirees:
- Ensure their income lasts throughout retirement
- Structure withdrawals to be as tax-efficient as possible
- Protect their estate for future generations
- Provide objective, strategic advice to navigate economic uncertainty
One of the biggest benefits of working with a financial planner is peace of mind. Instead of constantly worrying about market performance, tax changes, and whether you are withdrawing too much (or too little), you can focus on enjoying retirement.
Manning Gee Investments’ Approach to Retirement Advice
Manning Gee Investments, in partnership with Money Wise UK, has developed a centralised retirement proposition designed to align with the FCA’s review on retirement advice. This approach ensures:
- Clients receive high-quality, independent advice tailored to their circumstances
- Retirement income strategies are structured for tax efficiency and sustainability
- Investors can confidently enjoy their retirement without financial uncertainty
Manning Gee Investments is among a select group of firms adopting this forward-thinking approach, aiming to make a real difference in retirement outcomes for their clients.
Is Financial Advice Worth Paying For?
Research by The International Longevity Centre UK (ILC-UK) found that:
- People who took financial advice accumulated on average £47,000 more in retirement savings than those who didn’t
- Those who regularly engaged with an adviser were more confident and less anxious about their finances
- Advised clients were significantly more likely to feel in control of their financial future
For many, the question is not “Can I afford financial advice?” but rather “Can I afford to get it wrong?”. A well-structured retirement plan can mean the difference between financial security and running out of money too soon.
Final Thoughts
Retirement is one of the most significant financial transitions in life. Given the complexities of investment management, tax efficiency, and inheritance planning, working with a financial adviser can add substantial value.
Manning Gee Investments, through its partnership with Money Wise UK, provides specialist retirement advice to help clients achieve financial security and peace of mind. Whether you’re approaching retirement or already retired, seeking expert guidance can be one of the best decisions you make for your future.
If you’d like to explore how financial advice can enhance your retirement, get in touch with Manning Gee Investments today.
General disclaimer: We sourced the data from external providers. While we strive for maximum accuracy, we cannot guarantee the reliability of the data they supply. The author writes the introduction from their perspective, reflecting their views, which may not align with those of Manning Gee Investments. Anyone considering a product or service based on this blog should seek professional advice or conduct their own research before making a decision. The author bears no liability for decisions made based on this blog. Investments can rise and fall in value, and the return at the end of the investment period is not guaranteed—you may receive less than you originally invested.