Pension Advice for 65 Year Olds
At 65, your pension priorities are executing your retirement plan. You may already be accessing your pension or preparing to do so. Getting the withdrawal strategy right is crucial.
How Much Should You Have Saved at 65?
A common benchmark is to have 10x your annual salary saved in your pension by age 65. On a median UK salary of £35,000, that means approximately £350,000 in pension savings.
Quick check: If you are in your 60s with less than £350,000 saved, consider increasing contributions. Even an extra £100/month makes a significant difference over time.
Key Priorities at 65
- Finalise your retirement income strategy
- Consider whether to take tax-free cash and how to use it
- Set up drawdown, buy an annuity, or create a blended income plan
- Ensure your pension nominations and death benefit arrangements are in order
Frequently Asked Questions
This guide covers the key aspects of pension advice for 65 year olds. The answer depends on your specific circumstances, but the information above provides comprehensive guidance.
For significant pension decisions, professional advice from an FCA-regulated adviser is recommended. The cost is typically recovered through better tax planning and investment strategies.
Initial pension advice typically costs £500-£3,000 depending on the complexity. Ongoing management is usually 0.5-1% per year. Through PensionHelper, our matching service is free.
The annual allowance for pension contributions is £60,000 for the 2025/26 tax year (or 100% of your earnings, whichever is lower). Higher earners may face a tapered allowance.
Basic rate taxpayers get 20% relief automatically. Higher rate (40%) and additional rate (45%) taxpayers claim extra relief through Self Assessment. Salary sacrifice saves National Insurance too.
Currently from age 55, rising to 57 from April 2028. You can take 25% tax-free and access the rest through drawdown, annuity, or lump sum withdrawals.