The Skill of Spending: Making the Most of Your Pension

At F J Hanly & Associates, we often meet people who’ve worked hard, saved diligently, and done all the right things to build up a decent pension—but then feel stuck when it’s time to start using it.

It’s no surprise. Most of the focus in financial planning is on saving: how much to put away, what to invest in, when to start. But very little time is spent helping people with the next step actually spending their pension in a way that supports the kind of retirement they’ve envisioned.

A recent study of 4,000 people aged between 50 and 70 found that nearly half 48% of those over 55 and not yet retired hadn’t accessed their pensions at all. And 43% said they didn’t know what to do with the money they’d saved. That’s a lot of uncertainty at a point in life when people deserve clarity and peace of mind.

Retirement Spending Isn’t One-Size-Fits-All

One of the biggest misconceptions about retirement is that spending remains steady year after year. The reality is more nuanced. Most people tend to spend more in the early years—when they’re active, travelling, ticking off the bucket list. Later on, spending naturally slows down as energy levels and priorities shift. And then in later life, healthcare and support costs may start to rise.

This pattern—sometimes called the “retirement spending curve”—has big implications. It means you might need more flexibility early on, and a plan to make sure your money lasts through the quieter years too. But if you’re working off a flat annual income model, as many traditional pension calculators assume, you could be missing a trick.

What Holds People Back?

From our experience, and backed up by research, there are a few common reasons people hesitate to draw from their pensions.

One is simply not knowing when or how to start. In the study, 38% of people said they weren’t sure when to access their money, and 22% didn’t know how much they could take without putting their long-term security at risk. That kind of uncertainty can lead to delays or even costly mistakes—like drawing down too much at once and triggering an unnecessary tax bill.

There’s also a deeper fear that sits with many people: the worry of running out. Without a defined benefit scheme or guaranteed income, it’s natural to feel anxious about whether the pot will stretch far enough.

Add to that the emotional side—guilt about spending what’s taken a lifetime to save, or the desire to leave something behind for family—and it’s easy to see why so many people put off making decisions.

It’s About More Than Just Numbers

One behavioural scientist summed it up well:

“In an accumulation world, we talk about optimising wealth. In a decumulation world, we need to talk about optimising life.”

And that’s really the heart of it. Retirement isn’t just a financial event—it’s a lifestyle change. It’s about shifting the focus from growing your pot to enjoying what you’ve worked so hard to build. It’s about having the freedom to live your life, without the constant worry of whether you’re doing it right.

We believe spending your pension well is a skill—and like any skill, it can be learned and supported with the right advice.

How We Can Help

At F J Hanly & Associates, we help people make that transition from saving to spending—especially those going through redundancy or starting to think seriously about retirement.

We don’t believe in generic solutions. Every person’s situation is different, and your retirement plan should reflect that. We’ll take time to understand what matters to you—whether it’s travelling while you’re still fit and active, helping the kids get on the property ladder, or making sure there’s enough put aside for later life care.

We’ll walk you through your drawdown options, look at how to access your funds tax efficiently, and build a plan that gives you the freedom to enjoy your retirement while making sure your money lasts as long as you need it to.

Let’s Talk

If you’re unsure when to start drawing from your pension—or you’re just looking for some straight-talking guidance—get in touch with us at F J Hanly & Associates.

We’ll help you make the most of what you’ve saved, so you can step into the next chapter with confidence and peace of mind.