Reaching 60 is a significant milestone — but more importantly, it’s the beginning of the most critical financial planning window of your life. The decisions you make in the next 5–7 years will define your retirement.
Here’s everything to review, claim, and action at 60.
What Changes at 60
| Change | Notes |
|---|---|
| Free prescriptions (England) | Apply for an HC2 exemption certificate |
| Bus pass eligibility (some areas) | National English bus pass is at 66; local schemes vary |
| Access to over-60s savings products | Some banks and building societies offer older-saver rates |
| Private pension access | Already possible from 55 (rising to 57 from 2028) |
| State Pension | Not yet — starts at 66 (rising to 67 from 2026–2028) |
1. Check Your State Pension Forecast — Today
This is the single most important step at 60.
You’re approximately 6 years from State Pension age. Check your forecast at gov.uk/check-state-pension.
The forecast shows:
- Your projected State Pension amount
- Your current qualifying NI years
- Gaps in your NI record and whether you can fill them
Full new State Pension (2026/27): £221.20/week = £11,502/year
Why act now: The deadline to purchase gap years at the standard rate is approaching. Check how many years you can still fill. Each qualifying year costs approximately £824 and delivers ~£342/year in State Pension — a payback of under 3 years. For a healthy 60-year-old, this is an extraordinarily good guaranteed return.
2. Quantify Your Retirement Income
Build the full picture:
| Income source | Projected annual amount | Starts at age |
|---|---|---|
| State Pension | Up to £11,502 | 66–67 |
| DB/final salary pension(s) | £ | Scheme age |
| DC workplace pension(s) | £ (estimated) | 57–65 |
| SIPP / personal pensions | £ | 57+ |
| ISA / savings income | £ | Whenever drawn |
| Rental income | £ | Now |
| Part-time work (if planned) | £ | As relevant |
| Total | £ |
Benchmarks (PLSA Retirement Living Standards 2024):
- Minimum: £14,400/year (single) — basic needs met, limited social activity
- Moderate: £31,300/year — more financial security and flexibility
- Comfortable: £43,100/year — regular holidays, car, some luxuries
3. Address the Pension Gap
If your projected income falls below your target, your main levers at 60:
| Lever | Notes |
|---|---|
| Increase pension contributions for 6 more years | Most impactful tool at this stage |
| Fill NI gaps (State Pension top-up) | Very high ROI — check now |
| Defer retirement (even 1–2 years more) | Significantly improves pot size |
| Defer State Pension | Increases it by ~5.8%/year deferred |
| Downsize property | Free up equity + reduce running costs |
| Reduce retirement spending target | More modest but achievable |
Rule of thumb: Each additional year of pension contributions at 60 can add 3–5% to your final pot (assuming continued investment growth).
4. Review Investment Risk in Pension(s)
As you approach retirement, check:
Are your pensions in a lifestyling fund? Many default pension funds auto-shift to low-risk assets (gilts, bonds) in the final 10 years before a target retirement age. If your fund assumes retirement at 65 and you’re planning to retire at 70, you may be de-risking far too early.
Are you planning to drawdown or buy an annuity?
- Annuity: De-risking toward investment-grade bonds makes sense — your pot converts to an income at retirement
- Drawdown: You stay invested; reducing to low-risk too early may hurt long-term growth
Speak to your pension provider and update your target retirement age and decumulation preference.
5. Consolidate Pensions (With Care)
If you have several small pensions from past jobs, consider consolidation:
Gather: Request values and statements from all providers. Use the Pension Tracing Service for any you’ve lost track of.
Consolidate when:
- You have multiple small DC pots
- Charges are high on older plans
- You want a clearer single view of your retirement savings
Never consolidate:
- Defined benefit (final salary) pensions — without independent financial advice (the guaranteed income usually far exceeds the CETV)
- Pensions with protected pension access ages or guaranteed annuity rates
6. Maximise Your Tax Efficiency
At 60, you likely have 5–7 more years of working income — and corresponding pension tax relief:
Higher-rate taxpayers: 40% relief on pension contributions — every £6,000 net becomes £10,000 in your pension. These are your final years at 40% marginal relief (income may reduce in retirement).
Annual Allowance carry-forward: You can carry forward up to 3 years of unused Annual Allowance (total up to £60,000 + 3 × £60,000 = £240,000 in theory, subject to earned income). Worth reviewing with a financial planner.
ISA allowance: Maximise £20,000/year. Stocks and Shares ISA with a 6-year horizon can still generate meaningful tax-free growth before retirement.
7. Protect Yourself — Insurance Review at 60
Insurance needs change at 60:
| Insurance type | Action at 60 |
|---|---|
| Life insurance (term) | Term may expire or premium jumps; review need — likely reducing |
| Income protection | Still valuable until retirement; check it doesn’t expire before your planned retirement date |
| Critical illness | Premiums high at 60; existing policies valuable — keep them |
| Health / PMI | More valuable as NHS wait times increase; consider if not already held |
| Long-term care insurance | Available from 50; premiums lower the earlier you buy |
Lasting Power of Attorney
If you haven’t made an LPA, do it now — while you’re in good health and full capacity. An LPA lets a trusted person manage your finances if you lose mental capacity.
Two types:
- Financial LPA — your property and financial affairs
- Health and Welfare LPA — medical decisions
Cost: ~£82 per LPA to register with the Office of the Public Guardian + solicitor drafting fees (~£300–£600 total).
Waiting until you need one is often too late.
8. Property and Housing Review
At 60, it’s worth reviewing your housing strategy for the next 30 years:
| Question | Action |
|---|---|
| Will the mortgage be paid off before retirement? | Check remaining term and plan to clear it |
| Is the property too large for later life? | Consider future downsize plans — not urgent, but worth thinking ahead |
| Is the property accessible or adaptable? | Plan any modifications before needed |
| Is rental property still right? | BTL management demands increase with age; consider planning exit |
9. Estate Planning Review
At 60, your estate planning should be fully in order:
| Task | Status |
|---|---|
| Up-to-date will | ☐ Made / reviewed recently |
| LPA (financial) | ☐ Made |
| LPA (health and welfare) | ☐ Made |
| Pension nominations updated | ☐ |
| Life insurance beneficiaries updated | ☐ |
| Funeral wishes recorded | ☐ |
Inheritance Tax planning (if estate may exceed £500,000):
- Review use of annual gifting exemptions (£3,000/year, immediately outside estate)
- Consider gifts-from-income using surplus income
- Review whether pension remains outside estate (DC pensions typically IHT-free)
- Seek specialist advice if IHT is a concern
10. Benefits at 60 and Beyond
Some benefits become available at 60, others at 66+:
| Benefit | Eligible from |
|---|---|
| Free prescriptions (England) | 60 |
| Free NHS sight tests | 60 |
| Free dental treatment (low income via NHS HC1) | Any age if income qualifies |
| Winter Fuel Payment | 66 (State Pension age) |
| Pension Credit | State Pension age |
| Free TV licence | 75 (for those receiving Pension Credit) |
| National bus pass (England) | State Pension age (66) |
| Free prescriptions (Wales/Scotland) | Any age |
Reaching 60: Financial Checklist
| Task | Done? |
|---|---|
| Check State Pension forecast | ☐ |
| Buy voluntary NI years to fill gaps | ☐ |
| Project total retirement income | ☐ |
| Compare to PLSA retirement income standards | ☐ |
| Address pension gap (increase contributions) | ☐ |
| Review pension investment risk / lifestyling | ☐ |
| Trace and consolidate old DC pensions (carefully) | ☐ |
| Maximise ISA allowances | ☐ |
| Review income protection insurance | ☐ |
| Make or update LPA (financial + welfare) | ☐ |
| Update will | ☐ |
| Update pension nominations | ☐ |
| Review mortgage — plan to clear before retirement | ☐ |
| Claim free prescriptions (England) | ☐ |
| Check IHT position if estate approaching £500k+ | ☐ |