 is often framed as a financial milestone defined by a number. Accumulate a sufficiently large 

, reach a target figure, and the decision appears straightforward. In practice, the calculation is rarely that simple. Capital size is only one variable. The more relevant question is whether those assets can generate reliable income, withstand volatility and support the level of expenditure required over time 

Analysis of Future Pension Incomes 2025

, Chartered Financial Planner & Partner at 

, explains, “retirement for one person is completely different to retirement for another.” For some, it represents a full stop. For others, it is a gradual transition or a change in pace. Without clarity on what retirement actually looks like in practice, financial modelling has little direction.

A common mistake is to begin with the pension pot rather than the outcome the plan is intended to support. 

 is not about reaching a universal figure; it is about defining a sustainable standard of living and understanding what level of capital is required to maintain it 

Retirement Living Standards

“It’s about reaching a quality of life and reaching your objectives,” Jack says. The required level of wealth will vary significantly depending on expenditure expectations, family commitments and how long those assets need to last.

Before considering timing, individuals need clarity on several factors:

Whether work will stop entirely or reduce gradually

What level of discretionary spending is expected

How travel, leisure and lifestyle priorities might evolve

Whether financial support for children or other family members will continue

Only once these questions are answered does the financial analysis become meaningful.

Liquidity and the Transition From Earnings

One of the most overlooked elements of retirement readiness is 

During the accumulation phase, the emphasis is naturally on keeping money invested and compounding. As retirement approaches, however, the sequencing of withdrawals becomes increasingly important. A defined cash reserve provides flexibility during periods of market volatility and reduces the 

 of selling investments at unfavourable moments.

Jack highlights the value of “a comfortable runway of cash” alongside “a good emergency fund.” The rationale is not purely technical. Retirement often removes what he describes as “your biggest asset and that is your earning ability.” Even when financial resources are sufficient, the shift from earning to withdrawing can alter behaviour. Liquidity helps stabilise that transition while longer-term assets remain invested.

Detailed line-by-line budgeting is rarely necessary. A simpler framework can provide clarity without unnecessary complexity.

Jack suggests thinking about spending in three broad layers:


Essential expenditure required to maintain stability: housing, utilities, food and core financial commitments.


Discretionary spending that shapes everyday lifestyle hobbies, travel, socialising and memberships.


Larger, less frequent expenses such as “big bucket list holidays” or “replacing the car every three or four years.”

This structure helps establish realistic spending parameters while recognising that expenditure in retirement rarely follows a straight line. Early years are often more active and therefore more expensive, followed by a quieter middle period and potentially higher costs later in life as health or care needs increase 

How does spending change through retirement?

-efficiently is not the same as drawing it tax-efficiently.

A common issue arises where the majority of assets sit inside a single pension wrapper. While beneficial during accumulation, concentration can limit flexibility when income is required. As Jack notes, “when it comes to taking it out, you’ve only got one basic rate allowance. You’ve only got one pot then to draw from.”

A diversified structure, combining pensions, 

, general investment accounts and cash, provides more flexibility when generating retirement income 

. For couples, the opportunity is even greater. Using both partners’ tax allowances can materially improve long-term outcomes. Even relatively modest pension contributions for a non-working spouse can add meaningful flexibility in later years.

Pension or ISA: which is better for long-term saving?

In this sense, retirement outcomes are influenced not only by how much has been accumulated, but by how those assets are distributed across different structures.

Another important distinction is the difference between retirement being possible and retirement being sustainable.

For some individuals, sustainability means preserving capital indefinitely. For others, the objective is to front-load experiences in the early years. Jack describes clients who prioritise those initial years: “I want to ensure that my primary objective is these first 15 years I can travel, enjoy it, spend it, and spoil the family.”

Neither approach is inherently right or wrong. The key question is whether the plan remains viable under less favourable conditions. This is where modelling becomes particularly useful. Stress testing assumptions around market returns, longevity and 

 can reveal whether a strategy holds together over time 

Sustainable withdrawal rates become a core advice issue for retirement clients

Retirement decisions are rarely purely mathematical. Behaviour and expectations often shape the outcome just as much as financial modelling.

One common misconception is the need to replicate pre-retirement income. In reality, savings contributions typically stop. As Jack points out, “that £1,500 a month that you’re saving for a rainy day, well, the rainy days come, that was your retirement.” Recognising this shift can materially change how affordable retirement appears. 

Trade-offs also emerge around intergenerational planning. Supporting children or family members during lifetime may reduce the capital available later. Balancing those priorities requires clarity. As Jack often reminds clients, “you’ve got to be selfish to be kind” — ensuring personal financial security before committing resources elsewhere.

Open communication plays an important role here. Where retirement planning involves a couple or wider family, alignment around objectives and expectations becomes essential. As Jack puts it simply, “The more you can tell me, the more I can help you.”

Retirement is not a single decision made once a particular number has been reached. It is the result of aligning expenditure, asset structure, tax efficiency and risk tolerance within a framework that can withstand uncertainty 

UK Retirement Study 2024

Capital matters, but on its own it provides limited guidance. A sustainable retirement depends on how assets are structured, how withdrawals are sequenced and how realistic the underlying assumptions prove to be over time.

The question is not simply whether you have accumulated enough. It is whether what you have accumulated can support the life you intend to lead, for as long as that life requires funding.

Retirement planning is not defined by a pension number.

 The right retirement date depends on your spending needs, income sources and how long your assets must support withdrawals.

 Holding cash alongside investments helps manage market volatility and prevents forced investment sales when funding early retirement income.

Clear spending structures improve retirement planning.

 Categorising expenditure into essentials, lifestyle spending and major purchases helps model realistic and sustainable retirement income.

Asset location affects retirement income.

 Using pensions, ISAs and other investment structures strategically can improve tax efficiency and increase flexibility when drawing retirement income.

Sustainable retirement requires stress testing.

 Cashflow modelling helps assess whether retirement income remains viable under market downturns, inflation and longer life expectancy.

When Can I Retire?

Jack works with individuals and families to provide pensions and investment advice in line with their needs and objectives. Jack has a focus on helping both employers and employees to navigate complex pension schemes. He also brings particular expertise in using appropriate tax vehicles to help those accumulating wealth, as well as structuring assets for individuals looking to generate a tax efficient income in retirement.

He is also one of the most qualified planners in the UK, having achieved Chartered status in 2022 and being made a Fellow of the Chartered Insurance Institute (CII) in 2025.

Chartered Financial Planner, Partner

Jack Munday

Saltus' investment management arm was founded in 2004, over the years they have realised that providing award-winning investment management is just one of the ways they can help clients achieve their aspirations. Saltus Financial Planning was launched in 2015, with the aim of being an industry leader in providing financial advice, so clients can rest assured their money is being looked after by experts. The Saltus Group now employs over 450 people and has the privilege of looking after over £10.5bn for their clients.

Saltus Financial Planning is a "Chartered" financial planning firm. They are experts at creating financial plans for clients at every stage of life. Their mission is to help you take control of your finances. Saltus can help you map out your financial and life goals, and ensure that you have a plan that will deliver them. They will help you to navigate the complex landscape of the investment world and assist with structuring your investments in a tax-efficient manner. 

Saltus Financial Planning creates a personalised and collaborative financial plan with you by listening to, and understanding, your needs and then applying their knowledge and expertise. This not only ensures your money continues to deliver for you but also builds lasting personal relationships based on trust and experience.

As an independent financial planning firm, they are able to provide objective advice that is aligned with your best interests. They can offer the best of both worlds, either selecting from in-house investment strategies managed by Saltus Asset Management or from an alternative provider, depending on your objectives.

Saltus constructs and manages portfolios centrally under the direction of the Investment Committee (IC). The IC is the decision-making body responsible for all aspects of portfolio management. Centralising control of portfolios helps them to control risks in the broadest sense and help achieve consistency of outcomes for clients. 


Saltus has a 5-stage investment process: 
1. Asset allocation: Unlike their peers, they do not operate within a constrained fixed asset allocation environment and instead use volatility parameters to guide the risk level of our mandates. However, asset allocation is a significant input and is continually reviewed and updated as markets develop. Allocation is derived from 4 primary sources: The knowledge and experience of their investment team, third party data providers, they use a range of data providers and external analysts, their fund manager network and bespoke, in-house, macro analysis tools.


2. Fund selection: They employ a "5 factor" process to calculate a manager’s average yearly alpha (or outperformance) and importantly, how volatile the manager is in delivering this outperformance. Targeting steady delivery of alpha rather than managers who enjoy the occasional purple patch, then go quiet for several years. The more consistent a manger is in delivering alpha, the greater confidence Saltus has in assessing the chances of them delivering this in the future.


3. Portfolio construction: Client portfolios are grouped into 5 core risk bands, characterised by their volatility of returns relative to the equity market. Each band can incorporate instruments with differing investment styles or objectives, but also possess common risk characteristics. Saltus Believes that portfolios are best constructed by identifying and investing alongside specialist managers in each asset class. As mentioned, they look to access the widest possible set of opportunities across asset classes, investment styles and geographies. When finalising portfolio construction, they will also consider diversification within an asset class to ensure maximum risk-adjusted diversification is achieved.


4. Monitoring and feedback: Using bespoke analysis tools and systems, Saltus monitors portfolios in real-time, allowing them to act swiftly to changing market conditions when required.


5. Reporting: All monitoring and feedback is reported on a weekly basis to their investment committee who implements any required changes.

Saltus

Adam is passionate about developing long standing relationships with his clients. He advises entrepreneurs, professionals, trustees, and retirees in various stages of life, but they all work closely with Adam to understand how best to preserve or grow their wealth. Managing his clients’ wealth typically involves much more than asset allocation. Adam spends time developing a deep understanding of what’s important to his clients before investing their funds to help them achieve it. He also works closely with clients’ lawyers and accountants to reach optimal outcomes and has regular discussions with younger family members to engage the next generation. Adam is a CFA Charterholder, is a Chartered Fellow of the CISI and has a degree in Economics.

Investment manager

Alex has experience partnering with high-net-worth individuals, business owners and families interested in intergenerational planning. She seeks first to understand her clients’ aspirations and goals to gain a deep understanding of what they hope to achieve. With specialist experience in cash flow modelling, Alex then designs tailored plans with her clients’ end goals in mind. Her knowledge of investments, pensions, estate planning and protection means she is well-versed in adapting plans over the course of her clients’ lives. Alex has over 15 years’ experience working in finance, working for top tier institutions JP Morgan and HSBC. She has achieved the gold standard Chartered status and has completed the Certificate in Financial Wellbeing. She firmly believes a well-structured financial plan has a positive correlation with one’s overall happiness.

Chartered financial planner

Alistair takes real pride in helping his clients to work out what they would ideally want for the rest of their lives and building close relationships to work together over the long term. Alistair believes that building a plan to show clients what their financial future might look like under various scenarios helps clients to take control of their financial decisions. This planning then helps to guide the way to the most appropriate investment solutions, so clients know their investments have been put together with their own financial goals and risk profile in mind. Alistair has extensive experience in helping clients improve their relationship with their wealth to maintain the lifestyle they want without having to worry unnecessarily about running out of money.

Alistair holds the designation of chartered financial planner, which is the highest recognition an adviser can achieve and shows a high commitment to ongoing study and professionalism. Having graduated from the University of Leeds with an undergraduate degree in Mathematics and Management Studies in 2001, Alistair has worked in financial services for over 20 years. He holds the advanced qualification for pension specialists and advises clients on pensions and investments as well as estate and tax planning.

Partner and Chartered Financial Planner

Gianpaolo (‘GP’ to most) works differently to much of the industry. Initial conversations deliberately try to avoid all matters financial. He is far more interested in the aspects of your life that make up who you, and your family are, and importantly, how you’d like your future to look. Ultimately, he works with you to help understand and plan how your specific aspirations can be better aligned with your finances. This allows your planning and decisions then made with greater clarity. Gianpaolo was a founding member of the Institute for Financial Wellbeing and was in the first cohort to attain the Certificate in Financial Wellbeing. He uses these insights when providing strategic, reality-focused advice. He is particularly attuned to the needs of successful executives and business owners – especially at life’s key transitions. Interactive cashflow modelling is used to help bring context to your decision-making process and bring to life your specific aspirations during your future life stages. GP has worked in financial services since 2001 and became a Chartered Financial Planner in 2008. He founded Higgins Fairbairn Advisory LLP, one of fewer than 300 Chartered Financial Planning firms, in 2010 before merging with Saltus in May 2022.

Jack works with individuals and families to provide pensions and investment advice in line with their needs and objectives. Jack has a focus on helping both employers and employees to navigate complex pension schemes. He also brings particular expertise in using appropriate tax vehicles to help those accumulating wealth, as well as structuring assets for individuals looking to draw a tax-efficient income in retirement. 

Jack joined Saltus in 2017 and has considerable experience having worked in the industry for almost 10 years. He is also one of the most qualified planners in the UK, having achieved chartered status in 2022.

Financial adviser

Lawrence provides a range of pension and investment advice. Whilst Lawrence supports individuals in numerous contexts, he primarily supports HNW individuals and senior executives with their retirement planning and complex tax arrangements. He is also highly experienced at providing specialist advice for Court of Protection cases and personal injury awards. 

To meet his clients’ objectives, Lawrence focuses on creating financial strategies that are flexible and sensitive to changes in circumstances. He works closely with clients to provide investment and planning advice to ensure their income and capital needs are met throughout their lifetime. A keen advocate of cashflow modelling, Lawrence believes it is essential to presenting a clear financial strategy.

Partner and financial adviser

Megan provides specialist advice to private clients on pensions and investments, as well as estate and tax planning. She works in partnership with her clients to ensure she fully understands their individual circumstances and aims to build long term relationships to ensure their goals are met both now and in the future.

Megan has particular expertise in supporting business owners, HNW individuals and senior executives with their retirement planning and complex tax arrangements. She also assists clients going through divorce, helping them reach financial settlements that are right for their needs and objectives.

After obtaining a Masters in Banking and Finance, Megan joined Saltus in 2015. Megan attained the highest level of qualification possible when she achieved chartered status and is a member of Resolution. She is also highly recognised in the industry having been selected as Citywealth’s Woman of the Year 2022.

Pete supports individuals in numerous contexts but his book of clients consists primarily of company directors and senior executives. He specialises in retirement planning and complex pension advice as well as tax-efficient structures and estate planning.

He is a first-class communicator and is highly experienced at cashflow modelling, which enables him to deliver insightful lifetime plans for clients. He strongly believes that helping clients envisage and stress test their financial plan is the key to helping them make informed financial decisions. Pete has worked in the industry for over 13 years and holds a Diploma in Regulated Financial Planning.

Phil has a no-nonsense approach, always helping clients to focus on the bigger picture whilst he takes care of the details. He has a strong focus on managing wealth across families due to his empathetic nature and is known for his ability to provide imaginative, yet pragmatic, solutions. Consequently, Phil is regularly called upon to help business owners structure their affairs and often assists with complex pension arrangements and divorce cases.

Phil joined Saltus Investment Managers as a Partner in 2014 and was one of the founding members of Saltus Financial Planning.

He has almost 30 years of industry experience and now sits on Saltus’s Management Committee as head of our Financial Planning team. Early in his career, he worked for two specialist pension companies and was then seconded to help establish distribution in the Channel Islands for an offshore investment firm. He later left the corporate world to establish and run his own firm for 13 years before joining Saltus. Philip holds the highest level of Financial Planning qualifications attainable as a Fellow of the CII, in addition to holding numerous Investment Management qualifications.

Jack Munday

Bio

Articles from author

When Can I Retire?

Start your journey to your
Financial well-being

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Jack Munday

Bio

Articles from author

When Can I Retire?

Start your journey to your Financial well-being

FIND OUT MORE

LEGAL

CONTACT US

Start your journey to your
Financial well-being