However far you are from retirement, ensuring your pension plans will sustain you when the time comes requires focus, now more than ever.

Recent research indicates that 1.6 million more people are at risk of hardship in retirement compared to a year ago, due to rising living costs. This is despite increased savings levels.

Around half the population are aware they are not building sufficient retirement savings across all ages and income brackets. Many face a significant reduction in living standards after stopping work or will end up working longer than they’d like because they can’t afford to retire.

The long road

It’s never too early to start paying into a pension – or too late. If you’re ten years or more from retirement you should focus on maximising savings and making the most of pension tax relief, especially if you’re a higher-rate taxpayer. Where possible, ensure funds are in growth assets, such as equities, which have historically delivered higher returns over longer time periods.

It’s easy to lose track of multiple pension plans and savings over a working life. But you can’t build a robust retirement plan without knowing what funds you have and what they will be worth by your planned retirement date. This includes State pension provision, often a sizeable chunk of retirement income. You can get a forecast from gov.uk/check-state-pension. This will also confirm when it will be paid, a key date in your plan.

Countdown

Many find it easier to consolidate pensions as they near retirement. However, before making changes, it’s worth checking that you aren’t giving up valuable guarantees and looking carefully at the charges and performance of any new scheme.

Knowing what your savings are worth is only half the picture. You also need to think about what level of income you’ll require once you stop working.

The Pension and Lifetime Savings Association estimates a single person today needs £31,700 a year for a moderate standard of living (or £43,900 for a couple). Understanding what you’re aiming for can help you identify shortfalls and take action, such as saving more or delaying retirement.

The finish line

Once you’re within five years of retirement, think about how you’ll turn your investments into income. This will mean exploring the pros and cons of drawdown, annuities or a combination of the two. How you’ll use your pension may influence your investment strategy in the final years. If you plan to keep funds invested, you may want to remain in growth assets. But if you want to cash in or buy an annuity, switching to less volatile assets to protect your funds from sudden downturns before you retire may be advisable.

Seek advice or guidance on your options, whether you’re a decade away or retirement is imminent. These are complex decisions, so regular reviews of your position could make all the difference.