Pension experts reveal how they are saving for their retirements

Three experts say how their retirement saving journey has been – and how they’re planning for the future

With many people anxious about what the best way to save for their retirement is, it can sometimes be reassuring to hear from those in the know.

The i Paper has spoken to three experts in the pensions world, about how they are planning for their later years.

Below, each runs through their plans and how their retirement saving journey has gone so far.

David Gibb, chartered financial planner at Quilter Cheviot, 43

I’ve got at least 20 more years – maybe more – until I retire, so I haven’t yet mapped out exactly how I’ll plan my retirement income. But as a single father to two daughters, one of whom has autism, my priority isn’t just retirement income – it’s making sure I can leave behind something meaningful to support them in their adult lives.

That’s why I expect to opt for drawdown [withdrawing money from a pension while the remainder is still invested] rather than an annuity [buying a fixed income for life], given its more favourable death benefits and the flexibility it offers.

Right now, I’m contributing as much as I can to my pension, alongside my employer’s contributions.

I also pay into an ISA [a savings account where you do not pay tax on the interest] and, somewhat late to the party, opened a Lifetime ISA at 39 [see more on LISAs here] to make use of its tax relief. It’s not as efficient as a pension, but it helps diversify my options – especially with the pension tax-free cash limit frozen indefinitely. I’m conscious this could change in the future.

When it comes to investments, I’m a strong advocate of 100 per cent equity portfolios, where money is invested in stocks in companies, during the accumulation phase – that’s exactly how I’ve structured my own.

Long-term growth is the goal, and I’m prepared to take on market volatility to get there.

I used to assume I’d receive a state pension when the time comes, but I’m not so sure anymore. With the retirement age likely to be pushed back again and growing chatter about potential means testing, I’ve started planning with the idea that it may not be there – or at least not in the way it once was.

Craig Rickman, personal finance editor at interactive investor, 42

After edging into midlife a couple of years ago, my retirement savings strategy now requires a sharper focus. I’m acutely aware these are crucial investing years to make sure I shovel enough away to live comfortably in later life.

I can claim my state pension at age 68 in the year 2050 – provided the government doesn’t tear up the existing timetable in its new review. However, I appreciate that waiting a bit longer to receive it is a possibility and will adjust my retirement plans accordingly should this come to pass.

I recently got a state pension forecast, which was a simple and swift process, and found I’m on track to receive the full amount without having to plug any gaps.

With regards to my personal savings, I have a workplace pension and a self-invested personal pension (SIPP). Back in 2016 I switched careers, causing me to halt contributions for around 18 months, so there’s a bit of catching up to do.

Maximising employer contributions and adding single lump sums where possible are two ways I give my savings a shot in the arm.

My Interactive Investor SIPP offers thousands of investments to choose from, but I tend to keep my strategy simple.

Most of my savings are in global trackers [which follow the performance of certain stock markets], with a portion allocated to UK smaller companies and emerging markets to add some spice.

I swerve more defensive assets like bonds [investments in Government debt] as growth is my chief goal right now.

Defensive assets tend to generate lower returns over the long term but are often seen as less risky.

A few years ago, I consolidated several pensions into my SIPP, which has proved a particularly prudent decision as things are much easier to manage and monitor.

Looking ahead, even though I’m at least a couple of decades from needing to draw from my pensions, I plan to stay invested in old age and take income flexibly, meaning drawdown is the favoured approach.

I appreciate the value annuities can provide for the right people in the right situations, but I’m not keen on the rigidity. As I have no intention for a hard-stop retirement and would like to continue working one or two days a week provided health permits, the option to tailor income withdrawals to my circumstances at any given time will therefore be important.

Clearly, lots can and inevitably will change between now and when I eventually retire.

Lisa Picardo, chief business officer UK at PensionBee, 46

I’ve spent most of my career in finance and now lead the UK business at PensionBee, so you’d expect me to be totally on top of my retirement savings.

But, like many people, I wasn’t as engaged as I could have been in my early career, so I just made minimum contributions into the workplace pension I was auto-enrolled into, and then forgot about it.

Later, there were also years when I didn’t contribute to a pension at all – particularly when I left employment in a corporate role to build my own business and to raise my own family. Retirement felt abstract, complex and pensions simply didn’t make it to the top of my to-do list.

That changed when I joined PensionBee. I saw first-hand how much progress could be made when people had access to the right technology, service, tools and content.

I started to consolidate my old workplace pensions into one easy-to-manage plan and became a more active saver. I now use the PensionBee app to track my pot, top up contributions and have felt empowered to actively select a plan that invests my savings in line with my values and goals.

As I’m a long way from retirement, I’ve chosen a plan that’s 100 per cent invested in equities to grow my savings for decades to come and then draw down flexibly when the time comes.

While I do expect to receive the full state pension, I know it won’t be enough on its own. That’s why I now make regular contributions and talk openly about pensions with other savers. It’s never too late to take control of your retirement – small, consistent actions can have a transformative impact over time.