Retirement may feel distant when you are building a business or managing a career, but the choices you make now determine whether you can stop work on your own terms. For women in the UK, the stakes are particularly high. According to Pensions Policy Institute research from 2024, women in their 60s have around £51,000 in private pension wealth, compared with roughly £156,000 for men of the same age. That gap makes it essential to prepare for your retirement deliberately, whether you are employed, self-employed, or running a limited company.
The good news is that retirement planning is not only for the wealthy. Small, consistent actions taken early can close the gap significantly. Here are four practical tips to help you build a retirement income that matches your goals.
1. Start early and stay consistent
Compound growth is the most powerful tool in retirement saving. The earlier you contribute to a pension, the longer your money has to grow. Even modest monthly contributions can build a substantial pot over decades because you earn returns on your returns.
If you are self-employed, this discipline matters even more. You do not benefit from an employer adding to your pot, so you must create the habit yourself. Set up a standing order into a personal pension or self-invested personal pension (SIPP) and treat it as a non-negotiable business cost. If you are employed, keep paying into your workplace scheme even when budgets feel tight. Missing years is expensive to catch up later.
2. Calculate the income you need to prepare for your retirement
Retirement is not free. The Pensions and Lifetime Savings Association (PLSA) publishes Retirement Living Standards that show what different lifestyles cost. Its 2024 update estimates that a single person needs at least £14,400 a year for a minimum standard of living, £32,100 for a moderate lifestyle, and £51,500 for a comfortable one. For couples, the equivalent figures are £22,400, £46,500, and £77,000.
Compare those figures with the state pension. In the 2025/26 tax year, the full new State Pension pays £230.25 a week, or about £11,973 a year. That leaves a significant gap if you want more than the minimum lifestyle. A single person aiming for a moderate standard of living, for example, would need to generate roughly £20,000 a year from private pensions, savings, investments, or part-time work.
Start by checking your current pension pots. Add up any workplace pensions, personal pensions, and expected state pension. Then work out the annual shortfall between that total and your target lifestyle. That number becomes your savings target.
3. Make the most of workplace and self-employed pension options
If you are employed, auto-enrolment means your employer must enrol you into a workplace pension if you earn at least £10,000 a year and are aged between 22 and State Pension age. The current minimum total contribution is 8% of your qualifying earnings, with at least 3% coming from your employer and 5% from you. Some employers offer more than the minimum, so check whether increasing your own contribution triggers extra employer money. That is effectively a pay rise that goes straight into your retirement fund.
From April 2028, auto-enrolment will expand. The government plans to remove the lower earnings limit so contributions are calculated from the first pound of earnings, and to lower the minimum age from 22 to 18. These changes will help younger and lower-paid workers build larger pots.
If you are self-employed, the picture is different. DWP data shows that self-employed people are far less likely than employees to be saving into a pension, leaving many reliant on the state pension alone. The trend is particularly relevant for women: our article on ONS: Self-Employed Women Over 50 on the Rise explores why more women are working for themselves later in life and what that means for retirement planning.
Setting up a personal pension or SIPP is straightforward, and contributions attract tax relief at your highest rate. For example, a basic-rate taxpayer paying £80 into a pension receives £20 in tax relief, taking the total contribution to £100. Higher-rate taxpayers can claim further relief through their Self Assessment. For guidance on tax-efficient saving and Self Assessment, see our Self Employed Tax UK: A Complete Guide for 2026/27. If you run a limited company, our guide on How to Pay Yourself as a Limited Company Director in 2026 explains how pension contributions can be a tax-efficient part of your remuneration.
4. Get independent guidance or advice
Pension rules, allowances, and investment choices can be complex. If you are unsure how much to save or where to invest, speaking to an independent financial adviser can help you avoid costly mistakes. Look for an adviser regulated by the Financial Conduct Authority who charges in a way you understand, whether that is a fixed fee, hourly rate, or percentage of assets.
If you are over 50 and have a defined contribution pension, Pension Wise, part of the government-backed MoneyHelper service, offers a free appointment to discuss your options. It is a useful starting point before you commit to a decision about accessing your pot.
Conclusion: take action now
Retirement planning is one area where delay is expensive. The longer you wait, the more you must save each month to reach the same target. For women in business, who often face career breaks, part-time working, and the gender pension gap, starting early and reviewing regularly is especially important.
Action steps:
- Check your state pension forecast at gov.uk to see how much you are on track to receive.
- Log into any existing workplace or personal pension accounts and note the current values.
- Compare your expected income against the PLSA Retirement Living Standards to identify your gap.
- If you are employed, ask your employer about matching higher contributions.
- If you are self-employed, open a personal pension or SIPP and set up a monthly standing order.
- Book a free Pension Wise appointment if you are over 50, or consider regulated independent financial advice for a full plan.
The best time to prepare for your retirement was years ago. The second-best time is today.
