It is a conversation many people quietly have with themselves, long before they ever raise it with us.

“Have I left it too late?”

Maybe pension contributions were started with good intentions, but then life got busy. A mortgage arrived. Children came along. School fees, college costs, home improvements, business pressures, holidays, cars and everyday living all took priority. Or perhaps retirement always felt like something that belonged in the distant future, until suddenly it did not feel so distant anymore.

The good news is that recognising the issue is a very important first step. Many people discover that their current retirement savings are unlikely to provide the lifestyle they hoped for. This can happen for several reasons: starting too late, saving too little, having no clear plan, or following an investment strategy that is no longer suitable for their age, goals or circumstances.

Don’t panic, but it is time for action.

Before deciding what to do next, you need a realistic picture of where you stand today. What sort of lifestyle do you want in retirement? What will that lifestyle cost? What income might you receive from your pension, the State Pension, other investments, rental income, business sale proceeds or savings? Are you broadly on track, or is there a gap?

Once that gap is identified, you can begin to make decisions. Some may be straightforward. Others may require compromise. But having options is far better than drifting towards retirement without knowing what awaits.

Keep working

One option is to work for longer than originally planned. This may not sound appealing at first, but for many people retirement is no longer a sudden stop at a fixed age. Increasingly, people are easing into retirement gradually, perhaps moving to part-time work, consultancy, project work or a less demanding role. This can be valuable financially and personally. Even a few additional years of earned income can reduce the pressure on your pension fund, allow further contributions, and delay the point at which you start drawing from your retirement savings.

There is also the reality that many of us will live longer, healthier lives than previous generations. For some, continuing to work in some capacity can provide structure, purpose and social connection, as well as additional income.

Can you save more?

A second option is to save more. This is the most obvious solution, but often the hardest to implement. It may require honest decisions about current spending. Do you need to change the car as often? Is every holiday essential? Are there subscriptions, habits or lifestyle costs that have crept up over time?

This is not about removing all enjoyment from life today to fund some perfect future. That would be a poor financial plan. But it may be about finding a better balance between present lifestyle and future security. Small increases in pension contributions can make a meaningful difference, particularly when tax relief and investment growth have time to work. 

Invest carefully

Your investment approach should also be reviewed carefully. This is not a decision to take lightly. Taking more investment risk late in the day simply because you feel behind can be dangerous. However, being too cautious for too long can also reduce the chances of achieving your goals. The right strategy depends on your time horizon, attitude to risk, retirement date, income needs and wider financial position.

Importantly, your investment timeframe does not end on the day you retire. Many people may spend 20, 25 or even 30 years in retirement, so pension funds often need to keep working long after retirement begins. This is where financial advice can be especially valuable: helping you avoid emotional decisions and ensuring your investments remain aligned with your overall plan.

Be realistic

Another option is to revisit the retirement lifestyle you are aiming for. Sometimes the original target is based on an idealised version of retirement: extensive travel, major home upgrades, generous family support, frequent leisure spending and no reduction in living standards. That may be achievable for some, but not for everyone.

A good retirement plan should be grounded in reality. This does not mean lowering your expectations dramatically. It means distinguishing between what is essential, what is desirable, and what would simply be nice to have. Many people find that the retirement they truly want is less expensive than the one they vaguely imagined.

Have you other choices?

For some people, bigger lifestyle decisions may also need to be considered. Your home, for example, may be your largest asset. If a significant amount of your wealth is tied up in a property that is now larger than you need, downsizing in retirement could release capital and reduce ongoing costs. A smaller home may mean lower maintenance, lower bills, less work and more freedom.

Of course, moving home is not just a financial decision. It is emotional. Family memories, community, neighbours and comfort all matter. But it is still worth exploring whether your current home is helping or limiting the retirement lifestyle you want.

The important message is this: if your pension funding has slipped, you are not alone and you are not powerless. There may be several ways to improve the picture, but the worst option is usually delay. The longer the issue is ignored, the fewer choices you may have and the harder the climb becomes.

A retirement shortfall is not a reason to give up. Instead plan properly. With a clear picture, practical advice and a willingness to make informed decisions, you may still be able to build a retirement that is secure, enjoyable and realistic.

Photo: Marc Najera

We’d like to share a story with you that originated back in 1963 when published by the German writer, Heinrich Böll. It’s a very short story, but perfectly captures one of the key messages that we stress with our clients.

The message is that while the amount of money you have or build up for the future is important, it is far more important to know the life that you want to lead and to have enough money to live that life. Otherwise, what’s the “right” amount of money to have, how much is “enough” for you? Is it €500,000, €5 million or €50 million? These are simply numbers.

Instead, it is far better to identify the life that you want lead – where you want to live, how long you want to work for, what you want to be able to do and buy in the future and how much money you want to be able to give / leave to loved ones. Once you are clear on these important life choices, we can then help you put a price on this life that you want. That is the right amount of money for you, as that is enough to do everything that you want.

See below – the Mexican fisherman is very clear about how much is “enough”. 

 “The Mexican Fisherman”

An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large fin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.

The Mexican replied, “Only a little while.”

The American then asked why he didn’t stay out longer and catch more fish.

The Mexican said he had enough to support his family’s immediate needs.

The American then asked, “But what do you do with the rest of your time?”

The Mexican fisherman said, “I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos. I have a full and busy life.”

The American scoffed. “I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat, and with the proceeds from the bigger boat, you could buy several boats. Eventually, you would have a fleet of fishing boats. Instead of selling your catch to a middleman, you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing, and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually NYC, where you will run your expanding enterprise.”

The Mexican fisherman asked, “But how long will this take?”

To which the American replied, “Fifteen to twenty years.”

“But what then?”

The American laughed and said that’s the best part. “When the time is right, you would announce an IPO and sell your company stock to the public and become very rich; you would make millions.” 

“Millions?” asked the fisherman. “Then what?”

The American said, “Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evening, sip wine, and play guitar with your amigos!” 

Now we’re not suggesting that everyone gives up work and goes fishing! After all, the Mexican fisherman doesn’t have much of a safety net here in case anything goes wrong – what if he gets sick or his boat sinks or what happens when he gets too old to go fishing? But his starting point is good, he knows the life he wants.

This is what we want for you. We want to help you to identify the life that you want and to then put a plan in place to ensure you achieve it, under all scenarios.

What does your future life look like?