At Brancaster House Financial Planning, we’ve reviewed countless retirement plans over the years. And while every person’s financial situation is different, there’s one consistent – and worrying – flaw we see time and time again:
Most people have no real idea what their retirement savings will actually provide.
They don’t know what they have, what they need, or whether they’re even remotely on track. Even worse, many people believe they’re doing fine… when the reality is far more uncertain.
This hidden flaw is costing future retirees peace of mind, financial security, and in some cases, the retirement they’ve worked decades to achieve.
Let’s explore why this happens, what the risks are, and what you can do about it.
1. People Don’t Really Understand What They Have
It’s common for people to walk into our office with a stack of pension statements, a handful of old workplace schemes, maybe an ISA or two, and a vague idea of what they think their retirement pot looks like.
But there’s a critical difference between having assets and understanding their function.
· Pension statements may show a projected value at retirement – but what income will that actually produce?
· Investment accounts might have grown nicely – but how will market volatility affect withdrawals over time?
· State Pension entitlements are often misunderstood or overestimated.
The problem isn’t a lack of effort. It’s a lack of clarity. Most retirement plans are built around accumulation – saving and investing – but not around decumulation – how you will actually draw income in retirement in a sustainable, tax-efficient way.
2. Most Retirement Plans Are Not Plans – They’re Just Pots
There’s a crucial distinction between having a retirement plan and having retirement accounts.
A plan involves:
· Knowing when you want to retire.
· Understanding how much you’ll need to live the life you want.
· Mapping out how your income will be generated over time.
· Factoring in inflation, taxes, healthcare costs, longevity risk, and market downturns.
But many people haven’t done that thinking. They’ve simply collected pots over time and assumed it will be “enough.”
This leaves them exposed to a painful reality: accumulating money doesn’t automatically translate into sustainable income.
3. The Dangerous Assumption: “I Think I’m On Track”
Many people operate on a hunch when it comes to retirement readiness.
· “I’ve got £300,000 saved; that should be fine, right?”
· “My workplace pension keeps going up.”
· “I’ve never really thought about how much I’ll need—I’ll just live within my means.”
The problem with this thinking is that it doesn’t take into account the realities of retirement spending patterns or risk.
For example:
· Spending often spikes in the early years of retirement (travel, hobbies, helping children), then fluctuates.
· Healthcare and care costs typically rise in later life.
· Inflation erodes purchasing power over decades.
Without a clear understanding of your income needs and your resources, it’s nearly impossible to know whether you’re genuinely on track.
4. Even Worse: Some People Are Off Track – and Don’t Know It
In many cases, people are not just uncertain – they’re overconfident. They assume that their savings and pension contributions will naturally deliver a comfortable retirement. But there are warning signs that often go unnoticed:
· No idea how much retirement will cost.
· No specific retirement date or age in mind.
· No forecast of income vs. expenditure over time.
· No plan for sequence-of-returns risk (the danger of negative investment returns early in retirement).
· No strategy for drawing income tax-efficiently.
The earlier someone realises they’re off track, the more options they have to fix it – by saving more, adjusting their timeline, or restructuring their investments.
But the later this realisation comes, the fewer choices remain.
5. How to Know If You’re Truly On Track
At Brancaster House, we believe in making retirement planning simple, actionable, and clear. Here are the key signs of a well-designed plan:
· You know your number: the amount of annual income you’ll need in retirement (factoring in inflation).
· You have a retirement income plan: including pensions, investments, property, and other sources.
· You know how long your money will last: under a variety of market and life expectancy scenarios.
· You have a withdrawal strategy: including which pots to access first, and when.
· You understand your risks: including longevity, inflation, market volatility, and unexpected expenses.
And most importantly – you have peace of mind. You’re not guessing. You’re planning.
6. Why Clarity Matters More Than Anything
Retirement isn’t just about money. It’s about freedom. Freedom to choose how you spend your time, where you live, how you support your family, and what kind of legacy you leave behind.
But freedom requires clarity. And clarity doesn’t come from guesswork – it comes from financial planning.
At Brancaster House, our role is to bring that clarity to your retirement journey. We help you:
· Understand what you truly have.
· Forecast what you will likely need.
· Build a strategy to bridge any gaps.
That means we don’t just look at pension statements. We look at your life, your goals, your values – and we create a tailored plan that helps you live the retirement you’ve imagined.
7. The Bottom Line
The hidden flaw in most retirement plans isn’t a lack of effort or even a lack of saving. It’s a lack of understanding. Most people don’t know if they’re on track – until it’s too late to course-correct.
But it doesn’t have to be this way.
With the right advice, a clear plan, and a proactive approach, you can take control of your future, eliminate uncertainty, and move toward a retirement built on confidence – not guesswork.
If you’re unsure where you stand – or simply want a second opinion on your retirement plan – we’re here to help.
Book your complimentary Retirement Clarity Review with Brancaster House today.
Your future deserves more than guesswork. It deserves a plan.
If you would like to discuss your pension position needs with one of our advisors, please request a free financial health check here: https://www.brancasterhouse.co.uk/healthcheck
