Client profile

Peter, 63, is a retired school headteacher approaching his planned retirement at 65. He has multiple pension pots from his career, but hadn’t reviewed them recently. With retirement just two years away, Peter was concerned that his current contributions and investment choices might not provide the income he hoped for. He wanted reassurance that he could maintain his lifestyle and also leave some money for his family.

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The challenge: making the most of a short time horizon

Peter’s main concerns were:

• How to increase his pension pot in the final few years before retirement

• How to make sure he could access income efficiently without paying unnecessary tax

• Whether consolidating his pension pots would be beneficial

At this stage, time is limited, so every decision needed to have a meaningful impact on his retirement income.

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The solution: maximising contributions and optimising pensions

We worked with Peter to create a targeted strategy for the last two years before retirement:

1. increased voluntary contributions – Peter topped up his pension, taking full advantage of the annual allowance before he retired.

2. pension consolidation – We reviewed all his old pension pots and recommended transferring them to one plan, reducing fees and simplifying management.

3. tax-efficient withdrawals planning – We modelled how Peter could draw from different pensions and his ISA to minimise tax and maximise his retirement income.

4. investment alignment – His funds were adjusted to a lower-risk, income-focused strategy suitable for someone approaching retirement.

This approach ensured Peter was making the most of the limited time before retirement while protecting his savings from unnecessary risk and tax exposure.

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The outcome: More income, less worry

After implementing the plan:

• Peter maximised his final contributions, boosting his pension pot by £35,000 in two years

• He consolidated multiple pensions into one, reducing fees and simplifying management

• Tax planning ensured he would retain more of his income in retirement

• Peter now has a clear, confident retirement plan and peace of mind

By taking action late in his career, Peter was able to meaningfully improve his retirement position without disrupting his lifestyle.

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Why it matters

Even in the final years before retirement, careful planning can significantly enhance your pension income. Reviewing contributions, consolidating pensions, and planning withdrawals efficiently can make a tangible difference to your lifestyle in retirement.

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Next steps: Make your pension work harder before retirement

If you’re nearing retirement and want to maximise your income, reduce tax, and simplify your pensions, a targeted review can give you confidence and control.

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