When people think about retirement planning, they often start with a number.
“How much do I need?”
“Do I need £500,000?”
“Do I need £1 million?”
Over the last two years, the team at Manning Gee Investments has spent a lot of time examining retirement and what it means to people. It has been a journey of learning and understanding.
We realised early on that retirement is one of the most important financial decisions people make. However, it is also becoming more complicated.
People are living longer. Retirement itself is changing. Some people stop work completely, while others reduce their hours gradually or start something entirely new.
A recent FCA survey showed that many people seek financial advice for pension and retirement planning. Yet despite this, there remains a tendency to focus on the solution before understanding the person.
As humans, we naturally look for certainty. Numbers feel comfortable because they give us something tangible to hold onto.
However, one of the biggest lessons we have learned is this:
Retirement is not a number
Everything we read often starts with numbers.
“How much do I need for retirement?”
“What pension pot should I aim for?”
“How much income should I have?”
Those questions make sense because we want certainty.
However, retirement is not really about a number.
It is about you.
It is about your retirement.
That distinction might sound subtle, but it changes everything.
We often use a simple example:
Client A needs £1,000 per month.
Client B needs £5,000 per month.
They may be the same age, have similar pension values, and retire at the same time. Yet they could have completely different ideas about what retirement means.
One may want quiet weekends, gardening and occasional holidays.
The other may want regular travel, hobbies, and financial support for children.
Neither is right nor wrong.
This is why our process starts differently.
Rather than beginning with products and investments, we begin with questions:
- What does a normal day in retirement look like?
- What does a typical month look like?
- What dreams and aspirations do you have?
- What really matters to you?
- What does financial freedom mean to you?
Only then do we begin to understand what number might actually be needed.
At Manning Gee, financial planning starts with your values and what matters to you, because your financial plan should support your life, not the other way around.
No single retirement solution is right
As Financial Planners in Bristol, we have spent a great deal of time exploring various retirement-income approaches.
As a firm, we often advocate natural income strategies because they can provide a smoother experience for many people.
Why?
Because retirement is not just about how much money you have.
It is also about the sustainability of your income.
Take a client who withdraws money by selling units from investments.
When markets are rising, this can feel comfortable.
However, what happens when markets fall?
If a portfolio falls by 50%, maintaining the same withdrawal rate requires selling more units to maintain the same income.
Selling more units during falling markets can place additional pressure on the portfolio over time.
This is often referred to as sequencing risk.
Natural income works differently.
Rather than relying entirely on selling investments, part of the income can come from dividends and natural portfolio income.
For many people, this creates a smoother experience and reduces emotional pressure during difficult markets.
However, that does not automatically make it the right answer for everyone.
Some people are comfortable with more volatility if there is potential for higher long-term growth.
Others prioritise stability and predictability.
In reality, many people sit somewhere in the middle, and a blend of approaches may be more suitable.
The important point is this:
There is rarely one perfect solution.
The solution should fit the person.
Looking beyond the pension pot
Retirement planning today requires thinking beyond simply building the biggest pension possible.
Good retirement planning also includes:
- Understanding sustainable income
- Tax-efficient planning
- Managing investment risk
- Planning for changing circumstances
- Estate and inheritance planning
- Creating flexibility as life changes
Most importantly, it means creating a plan around the life you want to live.
Final thoughts
Retirement is changing.
People are working differently, living longer and thinking differently about later life.
The biggest lesson we have learned is that the journey matters more than the solution.
Before choosing investments, before discussing pension products and before deciding on withdrawal strategies, the first question should always be:
What does your retirement actually look like?
Once that becomes clear, the rest often makes much more sense.
If you would like to discuss your retirement journey, Manning Gee Investments can help you build a financial plan tailored to your goals, values, and what matters most to you.
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 deciding. 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.