Your Complete Pre-Retirement Checklist
Retirement is one of life's biggest transitions. Getting it right requires planning across multiple areas — pensions, tax, insurance, legal matters, and lifestyle. This checklist ensures nothing falls through the cracks.
We have organised this guide into a timeline, starting with tasks you should tackle 5 years before retirement and working through to the final weeks before you stop working.
5 Years Before Retirement
1. Check your State Pension forecast
Visit gov.uk/check-state-pension to see your projected weekly State Pension amount and your State Pension age. If you have gaps in your National Insurance record, you may be able to buy voluntary NI contributions to boost your entitlement. This is often one of the best-value investments available — each qualifying year of NI costs approximately £825 and adds roughly £300/year to your State Pension for life.
2. Track down all your pension pots
Use the government's Pension Tracing Service to locate pensions from previous employers. Many people have forgotten pots from jobs decades ago. Even small pots add up, and consolidating them can reduce fees and simplify management.
3. Calculate your retirement income target
Use the Retirement Living Standards as a benchmark. A single person needs approximately £14,400/year for a minimum retirement, £31,300 for moderate, and £43,100 for comfortable. See our detailed guide on how much you need to retire.
4. Maximise pension contributions
Your 50s and early 60s are often your peak earning years. Take advantage by maximising pension contributions, using salary sacrifice, and carrying forward unused annual allowance from previous years. Read our guide to boosting your pension in your 50s.
5. Pay down debts
Entering retirement debt-free significantly reduces the income you need. Prioritise paying off your mortgage, then clear credit cards, car finance, and personal loans. Every pound of debt repaid before retirement is a pound less pressure on your pension.
2-3 Years Before Retirement
6. Book a Pension Wise appointment
The free government Pension Wise service explains your pension options and helps you understand tax implications. It is available to anyone aged 50+ with a defined contribution pension.
7. Consider financial advice
If you have a large pension pot, multiple pensions, a defined benefit scheme, or complex tax circumstances, regulated financial advice can save you significantly more than it costs. An FCA-regulated pension adviser can create a personalised retirement income plan.
8. Review your investment strategy
Your pension investments should reflect your plans for accessing the money. If you plan to use drawdown, you may want to stay in growth-oriented funds. If buying an annuity, a gradual shift towards bonds may be appropriate. Review this with your pension provider or adviser.
9. Create or update your will
Retirement changes your financial landscape. Update your will to reflect your current assets, wishes, and beneficiaries. Also consider setting up a Lasting Power of Attorney (LPA) while you are in good health.
| Legal Document | What It Does | Approximate Cost |
|---|---|---|
| Will | Directs how your assets are distributed after death | £150-£600 (solicitor) |
| Financial LPA | Allows someone to manage your finances if you cannot | £82 registration + solicitor fees |
| Health & Welfare LPA | Allows someone to make health decisions on your behalf | £82 registration + solicitor fees |
| Expression of wishes (pension) | Tells your pension provider who should receive death benefits | Free (via your pension provider) |
12 Months Before Retirement
10. Decide how you will access your pension
Choose between drawdown, an annuity, lump sums, or a combination. Your choice depends on your income needs, risk tolerance, other income sources, and health.
11. Shop around for the best rates
If buying an annuity, always use the Open Market Option to compare rates from multiple providers. Rates vary significantly, and you may qualify for an enhanced annuity if you have health conditions. If choosing drawdown, compare platform fees and investment options.
12. Plan your tax strategy
How you take your pension has major tax implications. Spreading withdrawals across tax years, using your personal allowance strategically, and timing your lump sum can save you thousands. Consider how your pension income interacts with State Pension, other earnings, and savings income.
13. Review your insurance needs
Workplace benefits typically end when you leave your job. Decide whether you need:
- Private medical insurance — costs increase with age but can be valuable
- Life insurance — may be less necessary if your mortgage is paid off and children are independent
- Home and contents insurance — review your cover levels
- Travel insurance — annual policies often offer better value for frequent travellers
14. Update your pension nomination forms
Ensure your pension death benefit nomination forms are up to date. These tell your pension provider who should receive your pension if you die. They are separate from your will and should be reviewed regularly, especially after life changes like divorce or bereavement.
3 Months Before Retirement
15. Notify your employer
Give formal notice of your retirement date. Check your contract for the required notice period. Discuss any handover arrangements, outstanding leave, and your final pay date.
16. Contact your pension providers
Initiate the process of accessing your pension. Most providers need 4-8 weeks to process your request. Provide all necessary documentation and confirm your chosen access method.
17. Set up a retirement bank account
Some retirees find it helpful to have a dedicated account for pension income and retirement spending. This makes budgeting easier and keeps retirement money separate from other savings.
18. Plan your first year of spending
The first year of retirement often involves higher spending (travel, home projects, celebrations). Budget for this and ensure your withdrawal strategy accounts for it without depleting your pot too quickly.
Final Weeks
19. Confirm everything is in place
- Pension income payments are scheduled to start
- State Pension claim submitted (if at State Pension age)
- Direct debits and standing orders updated as needed
- Council tax single person discount applied (if applicable)
- Free prescriptions registered (if aged 60+)
20. Claim your State Pension
The State Pension does not start automatically — you must claim it. You will receive a letter from the DWP about 2 months before you reach State Pension age, or you can claim online at gov.uk. You can also choose to defer your State Pension for a higher amount later.