Who we help
Investing in retirement: keeping your money working without losing sleep
Retirement changes the job your money has to do. It now has to pay you, last as long as you do and survive the market falls that will come along the way.
The challenges
- Turning a lump sum into a reliable income without selling at the wrong time.
- Knowing how much you can safely take each year.
- Market falls hurt more when you are withdrawing, because you sell more units to raise the same income.
- Layers of fund, platform and adviser charges quietly reduce what you can spend.
How a disciplined process helps
Separate spending money from growth money
Many retirees keep one to three years of planned withdrawals in cash or short-dated bonds, and leave the rest invested for growth. When markets fall, you draw from the cash, so you are not forced to sell shares at low prices.
It is a simple structure, but it changes behaviour. Knowing next year’s income is already set aside makes it far easier to sit through a bad month.
Set withdrawal rules before you need them
Decide in advance how much you will take, when you will top up the cash bucket and what you will do after a poor year. Rules made calmly are better than decisions made in a panic.
Review those rules once a year rather than every time the news changes.
Know what you pay
A retiree paying 1.5% a year in total charges is handing over a meaningful share of their potential growth every year. Checking every layer, and asking whether each one earns its keep, is one of the few returns you can guarantee.
Our charges simulator shows the gap in pounds or dollars over the years you choose.
Where to start
- Living off your investmentsSix withdrawal strategies compared.
- Retiring on £250kThe data, the plan and what makes it work or fail.
- Charges simulatorSee how much a 1.5% charge costs compared with 0.25% over 15 years or more.
- Guide: Is my pension performing?A step-by-step way to check your pension against sensible benchmarks.
Questions people ask
How much can I take from my investments each year?
There is no single safe number, because it depends on your age, other income, investment mix and how markets behave. Many people start with a modest percentage and adjust after poor years. Our article on withdrawal strategies compares six common approaches.
Should I move everything into cash when I retire?
Holding everything in cash removes market risk but exposes you to inflation over what could be a 25 to 30 year retirement. Many retirees keep a cash buffer for near-term spending and stay invested for the longer term.
Is it too late to learn to invest in retirement?
No. Retirement can be a good time to learn a process properly, because you have more time to do it. The aim is confidence and discipline, not becoming a full-time trader.
Important: this page is education and information only. It is not financial advice or a personal recommendation, and it does not take your circumstances into account. The value of investments and pensions can fall as well as rise, and you may get back less than you put in. Past performance is not a reliable indicator of future results. If you are unsure what is right for you, speak to a regulated financial adviser.