Money Advice by Age UK 2026 — What to Prioritise Every DecadeMoney Advice for 57 Year Olds UK — Decade to State Pension
Financial guide for 57 year olds UK. Decade to State Pension, pension access decisions, investment management, income planning, and retirement countdown.
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At 57 (the new normal minimum pension age from 2028), you have exactly a decade until State Pension. This is a critical point for finalizing retirement strategy. Here’s your guide.
Financial Targets at 57
| Area | Target |
|---|
| Emergency fund | 12 months expenses |
| Pension pot | 7x salary |
| Total investments | £430,000-800,000 |
| Net worth | £800,000-1,500,000 |
Pension at 57
Where You Should Be
| On £75k salary | Target Pot |
|---|
| 7x salary | £525,000 |
| Minimum | £450,000 |
Growth from 57
| Monthly | At 67 (10 years) |
|---|
| £500 | £85,000 |
| £750 | £125,000 |
| £1,000 | £165,000 |
| £1,500 | £250,000 |
Key Dates
| From 57 | Years |
|---|
| To 60 | 3 |
| To 65 | 8 |
| To 67 | 10 |
Pension Access Decisions
Common Scenarios
| Situation | Strategy |
|---|
| Still working, don’t need it | Keep invested |
| Retiring now | Access with plan |
| Part-time work | Supplement with small drawdown |
| Made redundant | Access minimum needed |
If Accessing
| Question | Answer |
|---|
| 25% lump sum? | Via drawdown over time is often better |
| Withdrawal rate? | 3.5-4% sustainable |
| Investment? | Keep some growth assets |
| Tax? | Manage carefully |
State Pension: 10 Years to Go
Priority Actions
Buying Missing Years
| If Short of 35 | Consider buying |
|---|
| Cost per year | ~£900 |
| Annual benefit | ~£300 for life |
| ROI | Excellent |
Investment Allocation at 57
| Asset | % |
|---|
| Equities | 10-20% |
| Bonds | 60-70% |
| Cash | 15-20% |
If Drawing Down
| Timeframe | Asset |
|---|
| 0-3 years | Cash |
| 3-7 years | Bonds |
| 7+ years | Equities |
Retirement Income Planning
Bridge to State Pension
| Retire At | Bridge Years | At £25k/yr |
|---|
| 57 | 10 | £250,000 |
| 60 | 7 | £175,000 |
| 65 | 2 | £50,000 |
After State Pension
| Sources | Annual |
|---|
| State Pension | ~£12,000 |
| Private pension (4%) | From pot |
| Total | Combined |
Working Decisions
| Benefit | Impact |
|---|
| Extra contributions | More pot |
| No withdrawals | Pot preserved |
| Delayed access | More growth |
| State deferral | 5.8% per year |
Part-Time Option
| Benefit | Value |
|---|
| Ongoing income | Reduces drawdown |
| Pension continuing | Still growing |
| Gradual transition | Easier adjustment |
| Social connection | Often valuable |
Health and Insurance
Considerations
| Factor | Impact |
|---|
| Health issues emerging? | May affect work |
| Life expectancy | Retirement length |
| Long-term care | Future possibility |
| NHS entitlements | Free prescriptions from 60 |
Estate Planning
Review
| Document | Current? |
|---|
| Will | □ |
| LPAs | □ |
| Pension beneficiaries | □ |
| Insurance trusts | □ |
Common Mistakes at 57
| Mistake | Better |
|---|
| Full retirement too early | Consider part-time |
| Over-withdrawing pension | Sustainable rate |
| Ignoring State Pension | Check and fill gaps |
| Too conservative too soon | Still need some growth |
| No income plan | Calculate carefully |
The 57 Checklist
| Action | Status |
|---|
| Pension access strategy | □ |
| State Pension checked | □ |
| NI gaps filled | □ |
| Investment allocation | □ |
| Retirement income plan | □ |
| Working decision made | □ |
| Estate planning current | □ |
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