Retirement Readiness: Are You on Track?
Retirement can feel like a distant concept — until suddenly it does not. Whether you are in your 40s, 50s, or approaching retirement age, the question of whether you are on track is one of the most important financial questions you can ask.
The honest answer for many people is: they do not know. And not knowing is itself a risk.
What does "on track" actually mean?
There is no single definition of retirement readiness — it depends on when you want to retire, what kind of lifestyle you want, and what other income sources you will have. The Pensions and Lifetime Savings Association (PLSA) publishes Retirement Living Standards that give a useful sense of what different income levels look like in practice:
| Standard | Single person | Couple |
|---|---|---|
| Minimum | £14,400/year | £22,400/year |
| Moderate | £31,300/year | £43,100/year |
| Comfortable | £43,100/year | £59,000/year |
These figures include the State Pension. For 2026/27, the full new State Pension is £11,502 per year. For a comfortable retirement, you would need private pension income of around £31,600 per year on top of the State Pension.
The 10x rule of thumb
A commonly cited rule of thumb is that by the time you retire, you should have saved roughly 10 times your final salary in pension savings. By age:
- Age 30: Aim to have saved 1x your salary
- Age 40: Aim to have saved 3x your salary
- Age 50: Aim to have saved 6x your salary
- Age 60: Aim to have saved 8x your salary
If you are behind these benchmarks, that is not a reason to panic — but it is a reason to act.
Common reasons people fall behind
Starting late. The power of compound growth means that money invested in your 20s and 30s does far more work than money invested in your 50s. A 10-year delay in starting to save can require roughly doubling your contributions to achieve the same outcome.
Underestimating how long retirement lasts. A 65-year-old today can expect to live, on average, into their mid-80s. That is a 20-year retirement — and potentially longer. Planning for a 15-year retirement when you live for 25 years is a significant risk.
Overlooking the State Pension. Many people underestimate the value of the State Pension. Check your State Pension forecast at gov.uk/check-state-pension — it is free and takes a few minutes. If you have gaps in your National Insurance record, it may be worth making voluntary contributions to fill them.
How to get a clearer picture
Our Retirement Planning Calculator can help you model different scenarios — adjusting your retirement age, contribution levels, and expected growth rates to see what difference each variable makes.
Our Financial Health Check is also a good starting point — a structured review covering income, outgoings, savings, protection, and retirement planning that can identify gaps and opportunities you might not have spotted on your own.
What if you are behind?
The most important thing is not to ignore it. Options typically include increasing contributions, making use of carry forward (unused annual allowance from the previous three tax years), delaying retirement, or adjusting your expectations with a phased or part-time retirement approach.
None of these options is painless. But they are all better than the alternative of reaching retirement without enough to live on.
Get a clear picture of your retirement position
We work with clients across East Lothian and Scotland to build retirement plans that are realistic, flexible, and built around what matters most to them.
Book a free consultationSBC Financial is authorised and regulated by the Financial Conduct Authority (FCA ref: 997666). The value of investments can fall as well as rise. Tax treatment depends on individual circumstances and may be subject to change. This article is for information purposes only and does not constitute personal financial advice.