The short answer
A financial planner helps someone approaching retirement turn their pensions, savings, investments and future spending needs into a practical retirement income plan.
That usually includes checking whether retirement is affordable, comparing pension income options, managing tax, reviewing investment risk, planning for later-life needs and making sure decisions fit the client’s wider family and estate planning goals.
Retirement planning is not just about choosing a pension product. It is about understanding what income you need, how long your money may need to last and what trade-offs you are comfortable making.
Most personal pensions do not normally allow access before age 55, rising to 57 from April 2028 for most people. Pension options can include taking cash, buying an annuity or using flexi-access drawdown, depending on the pension provider and scheme rules. You can read more on GOV.UK’s guide to taking personal pensions and the GOV.UK guidance on the increase to the normal minimum pension age.
How does a financial planner help with retirement income?
The main job is to help you answer a practical question:
“Can I afford to retire, and how should I take income without taking too much risk?”
A planner may look at different scenarios, such as retiring now, working part-time, delaying retirement, spending more in the early years, helping children financially or leaving money to family.
They may also compare the pros and cons of different income sources, such as guaranteed income, flexible pension drawdown, cash reserves, ISAs and other investments.
MoneyHelper’s Pension Wise service explains the main defined contribution pension options, including when pension pots can be accessed, the different ways to take money, how each option is usually taxed and how to spot scams. You can find more information on MoneyHelper’s Pension Wise page.
A financial planner goes further by applying those options to your personal circumstances and making a personalised recommendation where advice is needed.
Example: approaching retirement at 60
Sarah is 60 and wants to retire at 62. She has two old workplace pensions, a current pension, ISAs, cash savings and a small mortgage. She is unsure whether to take tax-free cash, reduce her hours, or leave her pension invested.
A financial planner might help Sarah:
- calculate her likely retirement spending;
- check whether her income is sustainable;
- decide which assets to use first;
- understand how withdrawals may be taxed;
- build an investment strategy for retirement;
- keep enough cash for emergencies;
- consider what happens if markets fall early in retirement;
- review whether her estate planning is still suitable.
The outcome should be a clear retirement plan, not just a pension recommendation.
When is retirement advice especially useful?
Financial planning is particularly valuable if:
- you have several pensions and are unsure how they fit together;
- you are deciding between drawdown, annuity, cash withdrawals or a blend;
- you want to reduce tax in retirement;
- you are worried about running out of money;
- you want to help children or grandchildren;
- you have inheritance tax concerns;
- you are a business owner planning to exit or reduce work;
- you have a defined benefit pension and are considering your options.
Defined benefit pensions can be especially complex. The FCA describes these pensions as valuable because they provide a guaranteed retirement income, and says advice on whether to transfer one is complex and requires specialist resources.
What will you actually get from retirement planning advice?
A good financial planner should help you understand your choices clearly. They should not simply push you towards a product.
You should expect:
- a clear review of your pensions, savings, investments, income, spending, debts, tax position and retirement goals;
- a discussion about what you want retirement to look like;
- projections showing how long your money could last under different retirement scenarios;
- a plan for taking income in a tax-efficient way;
- a review of how much investment risk is appropriate as you move into retirement;
- guidance on how and when to take money from pensions, ISAs, savings and investments;
- an explanation of costs and charges;
- clear written recommendations;
- regular reviews once retirement starts.
The best retirement plans are flexible. Your spending, health, family situation, markets and tax rules may all change over time.
The key takeaway
A financial planner helps you move from uncertainty to a structured retirement income plan.
The goal is to help you understand what you can afford, how to take income tax-efficiently, how much investment risk to take and how your retirement decisions affect your wider financial life.
Approaching retirement is one of the most important financial decision points many people face. Getting advice early can give you more options and fewer rushed decisions.
About Daniel Barrett
Daniel Barrett is a Chartered Financial Planner specialising in pensions and retirement planning. He helps people make sense of complex financial decisions, including when they can afford to retire, how to create a sustainable income in retirement, and how to pass wealth on to their family as tax-efficiently as possible.
Daniel particularly enjoys working with people who want clarity and confidence before making important retirement decisions. His approach is to help clients understand their options, avoid unnecessary mistakes, and build a financial plan that supports the life they want in retirement.
If you are approaching retirement and considering whether financial advice could help, you can book a free, no-obligation initial consultation with Daniel here:
Book your initial consultation
The initial meeting is an opportunity to discuss your situation and understand whether advice may be suitable.