After decades of earning, saving and building your wealth, stepping into retirement can feel exciting, but also unsettling. Suddenly, instead of topping up your savings every month, you’re drawing money out. For many people, that feels strange, even scary.
The most common fear we hear from clients is simple: What if I run out of money?
At Amber River, we believe that retirement should be about freedom, not fear. The right financial plan can show you exactly what you can afford, so you can enjoy life now and still feel secure about the future. With cashflow modelling and a clear strategy, you can give yourself permission to spend with confidence.
In fact, research shows the difference good advice can make. In the Great British Retirement Survey, 89% of people who saw a financial adviser reported feeling more confident afterwards, with one in three saying they felt much more confident. That kind of reassurance can be just as valuable as the financial plan itself.
57% of people say the rising cost of living is their biggest financial worry
The mindset shift: From earning to spending
Retirement is more than a financial milestone. It’s a psychological one, too. After years of relying on a regular salary, the rhythm of money coming in every month suddenly changes.
Even if you have healthy pensions and investments, the feeling of security can wobble. For the first time in decades, you’re “dipping into” money you’ve spent a lifetime building up.
Many of our clients tell us it feels odd at first. Even those who are financially secure often describe feeling guilty or anxious about dipping into their capital, worrying they might regret spending it later.
That reaction is completely normal. The risk isn’t only running out of money, it’s being so cautious that you miss out on the experiences you’ve worked so hard for.
The most common fear: Running out of money
If you’ve felt anxious about spending in retirement, you’re not alone. The rising cost of living has intensified worries for many people.
Recent research paints a clear picture:
- 57% of people say the rising cost of living is their biggest financial worry.
- Over half of UK defined contribution savers feel pessimistic about their retirement outlook. Of those whose views changed recently, 40% plan to delay retiring and 34% expect to only partially retire.
- 45% of workers believe they’ll never be able to afford to retire, up from 39% a year earlier.
- 81% worry their retirement comfort will diminish because of rising living costs.
These concerns are valid, but they don’t have to control your choices. The right financial plan can act as an antidote to uncertainty. By understanding what you have, how long it could last, and how different scenarios might play out, you can replace anxiety with clarity.
How cashflow modelling brings clarity
So how do you know what you can safely spend? This is where cashflow modelling comes in.
Cashflow modelling is a way of mapping your financial future visually on screen. It shows your income, spending and savings projected over time, taking into account pensions, investments, tax and inflation.
You can stress-test it against different “what if” scenarios. Clients often want us to model a range of situations such as “What if markets fall?”, “What if I live to 100?”, “What if I want to spend more in the first 10 years of retirement?”
Seeing this information laid out clearly can be a revelation. It turns abstract fears into clear, manageable data, helping you make confident decisions.
Clients often tell us they feel a huge sense of relief after seeing their financial plan in full colour. It’s not just numbers on a spreadsheet, it’s a picture of your life, your choices and your future security.
The benefits of spending well
Spending in retirement isn’t just about covering the bills. It’s about living the life you’ve always dreamed of.
- Lifestyle benefits
When you feel secure, you can make memories: travel, spend time with family, take up hobbies, or finally tackle that project you’ve always wanted to do.
Some clients choose to make gifts to their children or grandchildren while they can see them enjoy it – what’s sometimes called a “living inheritance.”
In fact, the Great British Retirement Survey found that 15% of over-65s have given a living inheritance in the past three years.
- Financial benefits
Spending steadily and intentionally can also make financial sense, especially with the tax changes coming in April 2027.
Right now, pensions are generally outside your estate for Inheritance Tax (IHT) purposes. But from April 2027, that advantage is being removed. If you have more than £500,000 in your estate (including your property) as a single person, or £1 million for a married couple, anything left in your pension will be subject to 40% IHT.
That’s not all. If you die after the age of 75 (as most of us hope to do), any money your beneficiaries draw from your pension will also be taxed at their marginal income tax rate. In effect, your pension could be taxed twice before your loved ones see it.
This changes the traditional advice. In the past, many advisers recommended spending other assets first and leaving pensions until last. Now, spending pensions earlier can often be the smarter strategy.
Taking a planned, gradual approach means you can:
- Reduce future tax bills for your family by drawing down pensions during your lifetime, rather than leaving a large pot to be taxed after death.
- Smooth your income over retirement years, potentially staying in a lower tax band and avoiding sudden spikes in tax liability.
- Enjoy your money while you’re healthy and active, instead of sitting on large sums that might ultimately go to HMRC.
With careful retirement planning, you can find the right balance: spending enough to enjoy life now, while still preserving a sustainable income for later years.
Giving you more than just a technical plan
Money decisions are rarely just about numbers. They’re about reassurance, confidence, and peace of mind.
At Amber River, we know a financial plan isn’t just about making the sums add up. It’s about giving you the confidence to enjoy life without constantly worrying if you’re doing the right thing. We help you make sense of the spreadsheets, but we also give you the reassurance to act on them.
Because the real value of a retirement plan isn’t just knowing what you could spend. It’s feeling comfortable enough to go out and actually do it.
You’ve worked hard for this moment. Now it’s time to enjoy it.
Get in touch
If you’d like to feel confident about spending in retirement, we’re here to help. Our advisers can show you exactly what’s possible with clear, personalised cashflow modelling.
To set up an initial appointment with an Amber River financial planner, call 0800 915 0000. Alternatively, you can use our contact form to arrange an appointment.
Disclaimer
The information within this article was correct at the time of publishing, but laws and tax rules are subject to change. Your circumstances and where you live in the UK may also have an impact on your tax treatment.
