You've reached retirement. Now the plan needs to work.
Retirement is not the end of financial planning - it is where it becomes most consequential. Managing income, protecting assets, planning your estate and adapting to changes in later life all require ongoing attention. Aetas Wealth works with people in retirement to make sure their money does what they need it to do, for as long as they need it to.
Retirement is longer than most people plan for.
A couple retiring today at 65 has a reasonable probability that one of them will live past 90. That is a 25-year retirement. The decisions made in the first few years - how much to draw, from which wrapper, in what order - have a compounding effect over that entire period.
Most retirees underestimate sequence-of-returns risk, inheritance tax exposure and the cost of later-life care. The Finance Act 2026 pension changes have added a further layer of complexity that many existing plans do not yet reflect.
A retirement income plan that works at 65 may not be optimal at 75 or 85. Regular review, and a plan built to flex, makes a significant difference to outcomes.
Where we focus for people in retirement.
The areas that matter most once you have stopped working.
Retirement income planning
How much can you draw, and from which sources, without running out of money or paying more tax than necessary? We model your income from pension drawdown, annuity, ISA, property and State Pension to give you a clear, sustainable income strategy across your whole retirement.
Finance Act 2026 - pension inheritance tax
From April 2027, unspent pension funds will be subject to inheritance tax at 40%. For people in retirement with substantial pension assets, this changes when and how much you should draw from your pension relative to other assets. We model the impact and help you restructure your drawdown strategy accordingly.
Estate and inheritance tax planning
Making sure your estate passes efficiently to the people you intend to benefit. This includes reviewing Wills, Lasting Powers of Attorney, trust structures, gifting strategies and the interaction between your pension, property and other assets in the context of inheritance tax.
Later life and care planning
Planning for the possibility of care needs - whether at home or in a residential setting - is one of the most important and least discussed areas of later life financial planning. We help you understand the options, the costs and how to structure your assets to remain in control.
Investment management in retirement
Your investment strategy in retirement should be different from the one that built your wealth. Sequencing risk, income requirements and a longer time horizon than many people assume all need to be reflected in how your portfolio is structured and managed.
Ongoing financial planning review
Retirement is not a set-and-forget phase. Tax rules change, your health and circumstances change, and markets move. An annual review with a planner who knows your full picture ensures your plan stays relevant and your decisions remain well-informed.
The Finance Act 2026 changes the retirement income calculation.
For many people in retirement, the pension was the last major asset outside their taxable estate. From 6 April 2027, that changes. Unspent pension funds will be brought within the scope of inheritance tax at 40%.
This affects the order in which you should draw on your assets. If your estate is likely to be subject to inheritance tax, drawing down your pension first - rather than preserving it - may produce a significantly better outcome for your beneficiaries. The analysis is different for every person depending on their overall estate position, income needs and family situation.
People already in retirement who built their plan around the pension-as-IHT-shelter model need to revisit their assumptions before April 2027. The decisions are not difficult once the numbers are modelled clearly, but waiting reduces the options available.
Aetas Wealth has been advising clients on the Finance Act 2026 pension inheritance tax changes since the legislation was announced. If you have not yet reviewed your drawdown strategy in light of these changes, a conversation with one of our advisers is the right starting point.
Questions we hear most often from people in retirement.
How much can I safely draw from my pension each year?
There is no universal answer. The right drawdown level depends on your total assets, your income from other sources, your expenditure, how long your retirement may last, and your estate planning objectives. Cash flow modelling is the only reliable way to answer this question for your specific situation. Rules of thumb are not a substitute for a plan.
Should I be drawing from my pension or my ISA first?
The Finance Act 2026 changes have made this question significantly more important. If your pension will be subject to inheritance tax on your death, it may make sense to draw from it more aggressively now, and preserve ISA or other assets instead. The optimal sequencing depends on your tax position, estate size and income needs. Regulated advice is essential before changing your drawdown strategy.
Do I need an annuity, or is drawdown better?
Drawdown gives you flexibility and the ability to pass residual funds to beneficiaries. Annuity gives you certainty of income for life regardless of market conditions. Many people in retirement benefit from a combination - securing a base level of guaranteed income through an annuity while keeping the remainder in drawdown. The right balance depends on your income needs, health and attitude to risk.
How do I plan for the possibility of needing care in later life?
Care planning starts with understanding the costs, the means test thresholds and the options available - from home care to residential care to specialist provision. The key decisions concern which assets to preserve, how to structure ownership, and whether to self-fund or consider insurance-based solutions. This is best approached as part of a broader later life financial plan rather than in isolation.
Read our companion guide: Pension drawdown vs annuity: making the right choice for your retirement income.
Make sure your retirement plan still works.
A first conversation with Aetas Wealth costs nothing and commits you to nothing. We will look at your situation honestly, tell you what we think, and let you decide whether working together makes sense.
Book a free consultation Available via video call or in person. We work with clients across the UK.The value of investments and any income from them can fall as well as rise. You may get back less than you originally invested. Past performance is not a reliable guide to future performance. The levels and bases of taxation may also change.
The information contained above is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change.
References
- Office for National Statistics (2025). National life tables: life expectancy in the UK, 2022 to 2024. ons.gov.uk.
- Retirement Researcher (2024). How long can retirees expect to live once they hit 65? retirementresearcher.com.