So you’ve hit your 60s and suddenly realised your retirement savings might not be where you’d hoped. First things first – breathe. You’re not alone, and more importantly, it’s absolutely not too late to start taking meaningful steps to improve your financial future.

In fact, now might be the perfect time to take retirement planning seriously – because you’ve got the benefit of life experience, clearer priorities, and (for many) a more stable financial situation.

Here’s why saving for retirement in your 60s still makes a lot of sense – and how to get started.

Retirement Isn’t What It Used to Be

Forget the old idea of retiring at 65 and putting your feet up. Retirement today is longer, more active, and much more personal. Some people carry on working into their 70s, others travel, launch businesses, or get stuck into volunteering or hobbies they love.

Thanks to improvements in healthcare and living standards, the average 60-year-old man in the UK is expected to live to at least 84, and there’s a 1 in 4 chance he’ll live into his 90s. That’s potentially 25+ years to fund – possibly more.

So, even if you’re only just starting to save, you could still have decades ahead where your savings will need to do the heavy lifting. All the more reason to make sure you’ve got a solid plan in place.

“Have I Left It Too Late?”

Not at all.

Sure, it would’ve been great to start saving in your 30s. But you can’t change the past – and the good news is, your 60s come with unique advantages, including:

• More disposable income – kids may have left home, mortgages may be smaller (or gone).
• Peak earning power – many people earn the most in their final working years.
• Clarity of purpose – you’ve probably got a better idea of what retirement looks like for you.

Even starting at 60 gives you time to make a real impact – particularly if you plan to work a few more years.

Is Starting a Pension at 60 Worth It?

In most cases, yes. A pension is still one of the most tax-efficient ways to save for later life, even if you’re only a few years away from retiring.

Here’s why:

• ✅ Tax relief – For every £80 you put in, the government tops it up to £100 (even more if you’re a higher-rate taxpayer).
• ✅ Employer contributions – If you’re still working, you might be able to benefit from workplace pension matching.
• ✅ Flexible access – You can start taking benefits (including a 25% tax-free lump sum) from age 55 (rising to 57 in 2028).

⚠️ Just be mindful of pension charges, as they can eat into your returns more quickly when you’ve got less time for your money to grow. Speak to a financial adviser to find a plan with competitive fees.

How Much Do I Need?

It depends on what kind of retirement you want.

According to the Pensions and Lifetime Savings Association (2024 figures):

• £14,400/year – minimum standard
• £31,300/year – moderate lifestyle
• £43,100/year – comfortable lifestyle (think holidays and eating out regularly)

These are after-tax income figures, so you’ll need to work out how much you’ll need saved to produce that level of income alongside your State Pension, which currently pays just over £11,500/year if you qualify for the full amount.

Use that as your base and build up from there.

Retirement Planning Isn’t Just About Pensions

A solid retirement plan often includes a mix of income sources:

• State Pension – paid from age 66 (rising to 67 from 2026).
• Workplace and private pensions – can often be accessed from age 55.
• ISAs – tax-free savings with flexible access.
• Cash savings – for short-term needs or emergencies.
• Property income – from downsizing, renting out a room, or a second property.
• Part-time work – many retirees earn a little extra doing something they enjoy.

The more flexible your retirement income streams are, the easier it is to adapt as life throws things your way – whether that’s travel plans or care costs.

Want to Retire Soon? Focus on These Key Steps:

1. Get a clear picture of what you’ve got

Add up:

• Pension pots (private and workplace)
• State Pension forecast (use gov.uk)
• Savings and ISAs
• Property wealth

2. Work out what you’ll need

Think about:

• Essential living costs
• Travel and leisure goals
• One-off expenses (home improvements, helping the kids)
• Unexpected costs (healthcare, car repairs)

3. Fill the gap

If there’s a shortfall:

• Use pension contributions and tax relief to build up savings
• Explore downsizing or renting out a room
• Consider deferring your State Pension (it increases the longer you wait)
• Look at annuities or drawdown products for guaranteed income

Don’t Forget Financial Protection

As you plan your retirement, make sure you’ve thought about:

• Life insurance – If you still have dependants or debts
• Wills and estate planning – Make sure your savings and assets go where you want them to
• Lasting Power of Attorney (LPA) – In case you’re ever unable to make decisions for yourself

These steps can bring peace of mind, not just for you – but for your family too.

Final Word: It’s Never Too Late

Even starting in your 60s, you can still build a financial plan that gives you freedom, confidence and choices. Every pound you save, every step you take, gives you more control over how you spend the years ahead.

And it’s not just about money. It’s about what that money lets you do – travel, time with family, volunteering, hobbies. A retirement that’s on your terms.

If you’re unsure where to begin, get help. A good financial adviser can help you:

• Maximise your pension and savings
• Navigate tax rules and investment options
• Build a flexible, realistic plan for the retirement you want

You’re 60. The story’s far from over – and the next chapter could be your best one yet.