The following guest article gets to grips with how living in retirement is different from what previous generations experienced.

There are new approaches to drawing from savings and nowadays retirement is less of a “binary” event, with many retirees able and willing to continue in productive work in various ways. Given the mathematics of an ageing population and pressures on public finances, these conversations are important. The issues apply as much to high net worth and ultra-HNW individuals as they do to the wider public. 

Retirement – and pensions – are hot topicss right now, given all the speculation in the UK about what the government might do on tax. But beyond such considerations are more general ideas about how the world of retirement is changing, often in positive ways. To consider some of the issues is James Floyd (pictured below), managing director, Alltrust (more on the writer below.)

The editors are pleased to share these insights; the usual editorial disclaimers apply. Remember that this news service is here to encourage readers to share ideas, start conversations and raise questions. To comment, email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

James Floyd 

 
The image of retirement as a sudden departure from work, handing in your security pass on Friday and hitting the golf course by Monday is increasingly an anachronism. We see this first hand. Every year, more of our investors delay retirement, scale back work gradually, or choose to never retire at all.

This shift challenges traditional pension models and calls for adaptable strategies that align with longer working lives and varied income patterns.

The numbers tell the story. Nearly 500,000 Britons aged 70 and over are still in work, a figure that’s more than doubled since 2009. More than 1.4 million workers aged 65+ are economically active, and many of them are in full-time roles. As a pension provider with thousands of self-directed clients, we’ve observed a major shift: fixed retirement dates are fading, and with them, the one-size-fits-all models that used to dominate the retirement planning industry.

This change presents challenges, but also significant opportunity. The traditional SIPP (self-invested personal pension) framework was designed for a world where work stopped and pension income started – cleanly, predictably, and permanently. That model no longer reflects the reality of many investors' lives and, as a provider, we believe that SIPP strategies must evolve to support a more flexible, longer-lasting relationship between work, income, and retirement wealth.

We are working longer and planning smarter
From our perspective, today’s SIPP investor is increasingly likely to view retirement not as a singular event, but as a phase often extending into their early or even mid-70s. This matters because the entire structure of personal pensions, including SIPPs, was historically calibrated around an assumption that retirement began at a set age, typically 65 to 67.

But if our clients are working years past 67, it stands to reason that they should maintain exposure to growth assets for longer. Equity-heavy portfolios, once considered too risky post-retirement, may in fact be appropriate deep into a client’s 70s if earned income continues to meet daily needs and reduces pressure on withdrawals. We are seeing increasing demand for custom portfolios that maintain meaningful growth exposure well beyond traditional retirement thresholds.

For the investor, the benefits are twofold: first, the potential for higher returns over a longer investment horizon, and second, the ability to manage withdrawals more tax-efficiently by deferring pension income while other earnings continue.

Delaying drawdown: A tax planning opportunity
Delaying SIPP withdrawals while still earning can be a powerful planning move yet it's one that remains under-discussed. Drawing income while still working risks bumping investors into higher tax brackets unnecessarily. On the other hand, maintaining the SIPP as a tax-sheltered growth vehicle, even making further contributions where eligible, can enhance long-term outcomes.

Many investors in their late 60s and early 70s are unaware that they may still contribute to their SIPP and claim tax relief, provided they have relevant earnings. In fact, some are now using their state pension income, if they don't need it, to contribute back into their SIPP, potentially accessing 20 per cent or 40 per cent tax relief depending on their income band.

This is a key advantage of SIPPs compared with more rigid pension products: flexibility in timing, structure, and contribution options.

This new phase of retirement also demands a new approach to withdrawal strategy. Rather than triggering a fixed drawdown schedule at a set age, today’s SIPP investor needs dynamic options. They may work part-time, consult, or even run a small business, drawing only occasional income from their SIPP to supplement earnings.

As a provider, we’re responding by offering more granular drawdown capabilities and intuitive digital platforms that allow clients – and their advisors – to tailor withdrawals to their income, tax position, and lifestyle. Retirement is no longer binary. SIPP functionality must reflect that.

What advisors should be asking of their clients
As wealth advisors, it is crucial to guide clients through a series of key questions when shaping their retirement strategies. How long do they realistically anticipate remaining in the workforce, whether through formal employment or alternative income streams? Are SIPP withdrawals being initiated prematurely or in ways that are not optimised for tax efficiency? Is there still scope for clients to benefit from late-life SIPP contributions, even modest ones, to maximise available tax relief? And finally, does each client’s current asset allocation genuinely reflect their anticipated time horizon, rather than being dictated solely by their chronological age?

These questions are at the heart of modern retirement planning. And the answers rarely fit into a standard model.

We believe that it’s our responsibility not just to administer pensions, but to equip investors, and advisors, with the tools and flexibility for navigating longer, more complex retirement journeys.

That includes, greater freedom in managing asset allocations into later life, seamless, tax-aware drawdown features, support for late-stage contributions, and guidance on integrating pension planning with broader intergenerational and estate goals.

SIPPs, by design, are built for control and flexibility. That’s never been more important than in this new era of phased retirement.

About the author
James Floyd is managing director of Alltrust Services. He has over 15 years of experience in investment and asset management. Floyd is a global expert in providing innovative and tailored solutions for pension, trust, and corporate services. He also holds membership qualifications of MCSI, MLIBF and STEP affiliate and is a 2026 MBA candidate.