If you’re like many people, retirement planning sits somewhere between “I know I should think about it” and “I’ll get to it when life calms down.”
But life rarely does calm down, does it?
Whether you’re raising a family, climbing the career ladder, juggling commitments, or just keeping up with day-to-day demands, it’s easy to push long-term planning to the bottom of the list. That’s not because you don’t care, it’s because you’re human.
Why retirement planning often gets overlooked
Behavioural science tells us we have a natural tendency called ‘present bias’. We prioritise immediate rewards over future ones. So, when we’re faced with the choice between spending money now or saving for a retirement that might be 20 or 30 years away, our brains often pick the “now.”
Add to this the complexity of retirement saving, and it’s no wonder so many of us feel stuck. According to The Pensions Policy Institute*, the average person in the UK will have 11 different jobs during their lifetime, and that often means 11 different pension pots. Trying to track down each one, let alone work out what it all adds up to, can feel overwhelming.
So, how do you know if you’re on track?
That’s the million-pound question. And the honest answer is many people don’t.
In fact, research from Scottish Widows** in 2023 revealed that over 40% of UK adults aren’t confident they’ll have enough income in retirement. Even among those who are actively saving into a pension, only a small percentage know how much they’ll actually need to live comfortably.
This uncertainty isn’t just stressful, it can lead to inaction. This is where behavioural economics introduces the concept of ‘status quo bias’. When something feels complex, we tend to do nothing at all. But doing nothing can have long-term consequences.
How a financial adviser can help
A financial adviser can help you cut through the noise. By reviewing your pension pots, they can:
- Help you track down forgotten pensions from previous jobs
- Assess whether it makes sense to consolidate them into one manageable plan
- Give you a clear picture of your current position and where you need to get to
- Show you what your expected retirement income looks like, and what you can do to reach your desired income
The difference between the income you need and the income you want in retirement might not be as far off as you think, but you won’t know until you take a proper look.
Start now – your future self will thank you
There’s a saying in economics: The best time to start saving was yesterday. The next best time is today.
At Citrus Financial, we know how daunting pensions can seem, especially when they’re scattered across different providers and clouded by industry jargon. But our job is to simplify the process, not complicate it. If you’re worried you’re not saving enough for retirement, why not start with a conversation?
We’re here to help you feel better off from having met us.
* Source: The Pensions Policy Institute (PPI), “Lost Pensions 2022”
** Source: Scottish Widows Retirement Report 2023
The value of pensions and the income they produce can fall as well as rise, you may get back less than you invested.
Transferring out of a Final Salary scheme/Defined Benefit Scheme is unlikely to be in the best interests of or be suitable for most people.
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 26/03/2025
About the author: David is a highly regarded financial expert, known to many as BBC Radio Kent’s “Money Mentor,” where he shares practical advice and insights on managing money effectively. As the founder of Citrus Financial, David has built a reputation for providing tailored financial guidance to individuals and families, helping them achieve their financial goals with confidence.
You can hear more of David on BBC Sounds.
