How to Make Your Pension Last in Retirement

With increasing life expectancy, many people will spend 20–30 years in retirement. Making your pension last is one of the key challenges of financial planning for over-50s.

The 4% Rule

A widely-used guideline suggests withdrawing no more than 4% of your pension pot per year, adjusting for inflation. On a £200,000 pot, this means £8,000 per year. Combined with the full State Pension (£11,502), this gives £19,502 per year.

Practical Strategies

• Delay State Pension — each year of deferral adds approximately 5.8% to your weekly amount
• Reduce drawdown in down years — avoid selling investments when markets are low
• Keep 2 years’ expenses in cash — prevents forced selling during market downturns
• Review spending regularly — most people spend less as they age (travel less, eat less)