The Pension Policy Institute claims too few people are saving enough money to retire in comfort and here at CABA we have seen first-hand the financial difficulties some people may face when transitioning to retirement.

One of the most common difficulties is adapting your lifestyle to meet your new income. After all, it can be difficult to adjust to the drop in income that comes as a result of retiring from a full-time role and living solely off your pension.

It can be even more difficult for those reaching retirement who have either a reduced pension or no pension at all. Typically, this may be the result of someone:

  • Being self-employed or unemployed
  • Living on a reduced income (working part-time)
  • Having gone bankrupt at some stage in their life
  • Having health issues that prevent them from working and/or preparing for retirement
  • Requiring care or are caring for someone else
  • Supporting dependent children in later life

Steps to take

If you are approaching retirement age and are worried about your financial situation, there are several steps you can take:

Review your situation

It is important to acknowledge that your situation will be changing and to examine what impact that will have. The state pension is available to everyone. If you have failed to meet your minimal National Insurance contributions, you will be given a basic state pension of £130 which can be topped up. You should review how much State Pension you can get and identify what additional benefits you may be entitled to using our benefits calculator.

Reduce your outgoings

Living on less money inevitably means that you will have to review your lifestyle. Even small savings in your expenditure will contribute to an overall reduction in outgoings. Look into what adjustments you can make to ensure your money goes further. Find out more by reading our article on surviving a reduced income. 

Keep on working

More people than ever are choosing to work instead of retiring, with the number of working people aged between 60 to 75 having increased by more than 7% since 2001. Indeed, 28% of the working population of this country are currently aged 50 or over. According to figures from the Office for National Statistics (ONS), the number of people working (or seeking work) over the age of 65 has topped the 1 million mark.

The advantage of delaying taking your pension is that the longer you delay, the more your State Pension will be worth when you do take it. According to The Money Advice Service, for every 9 weeks that you defer taking your State Pension, it increases by 1%. So if you defer by a year, you’ll boost your pension by 5.8%. To find out more, have a look at our article on working after state pension age.

How CABA can help

If you're a past or present ICAEW member, ACA student or are a member of their families, and require financial support in retirement, we are here to help. We are here to provide support and are able to offer you:

  • Advice on benefits
  • Tips on maximising your income
  • Debt advice
  • Help with prioritising your finances
  • Financial assistance if you have unforeseen expenditure that you are unable to afford


Written by: Paul Day
CABA Support Officer

Paul Day is one of CABA’s debt support officers, providing assistance and support to Chartered Accountants in financial difficulty. He is a certified member of the Institute of Money Advisers, having completed his certificate in Money Advice Practice in 2013.

Paul Day