Understanding your options before you start drawing down your wealth
Retirement isn’t just the end of work — it’s the beginning of a new financial rhythm.
For those managing their own finances, the decumulation stage can be both liberating and daunting. You’ve built up your savings over decades — now the challenge is to turn that wealth into a reliable income that supports your lifestyle, lasts your lifetime, and reflects your values.
At the Academy of Life Planning, through our Planning My Life and Financial Life Coach programmes, we help self-directed people understand their options clearly and confidently — without recommending products or giving regulated advice. Our goal is to equip you with the knowledge, tools, and confidence to make well-informed decisions on your own terms.
Why This Matters Now
The Financial Ombudsman Service (FOS) recently revealed a 194% surge in complaints against St. James’s Place Wealth Management (SJP) in the first half of 2025 — a stark reminder of how critical it is for individuals to understand their retirement options before making irreversible decisions.
1,426 new complaints were lodged in just six months — up from 485 the year before.
Of these, 1,035 related to decumulation advice — drawing income from pensions or investments — and 367 related to investment products.
— Financial Planning Today, 29 October 2025
The message is clear: too many people are entering retirement without fully understanding the trade-offs and risks of their chosen strategy.
When advice is conflicted, rushed, or poorly explained, the consequences can be life-changing.
Now more than ever, it’s essential to approach retirement income planning with education, transparency, and self-agency. That’s where we come in.
What Is Decumulation?
Decumulation is the process of converting your accumulated savings and investments into income you can live on in retirement. It’s the opposite of accumulation — and requires a different mindset.
During accumulation, the focus is on growth. During decumulation, the focus shifts to sustainability, flexibility, and security. The key question becomes: How do I make my money last for life without sacrificing the quality of life I’ve worked for?
Decumulation Considerations
Here are five key areas to think through carefully before you begin drawing down your assets.
1. Income Needs and Lifestyle
Start by clarifying what “enough” means for you.
Break down your expected expenses into:
- Essential needs – housing, utilities, food, healthcare.
- Discretionary spending – travel, leisure, family support.
- Aspirational goals – legacy, philanthropy, personal projects.
This defines your minimum viable income and your desired lifestyle range.
2. Your Options for Income
There’s no one-size-fits-all solution. Each option has benefits and drawbacks:
| Option | Pros | Cons |
|---|---|---|
| Annuities | Guaranteed income for life | Less flexibility, no growth potential |
| Drawdown | Flexibility, potential for continued growth | Market and longevity risk |
| Blended strategies | Balance of security and flexibility | Complexity to manage |
| Cash buffers or part-time work | Simple, low risk | May not sustain long-term needs |
We help you explore these choices objectively — without steering you toward a particular product solution or provider.
3. Sustainability and Risk
How long will your money last? What happens if markets fall early in retirement or you live longer than expected?
Cashflow modelling can show you:
- How different withdrawal rates affect portfolio longevity.
- The impact of inflation and market variability.
- How adjusting spending or retirement age can strengthen sustainability.
We present these scenarios visually, so you can see the implications and make informed trade-offs. Or, you can try to create your own cashflow model on claude.ai. Use this prompt:
“Create a comprehensive lifetime cashflow model for retirement that lets you explore different decumulation strategies. This will include drawdown, annuities, or a combination approach.”
4. Flexibility and Review
Your retirement journey will evolve. Health, markets, and family circumstances change.
A sound plan isn’t rigid — it adapts.
Review your situation regularly, ideally every year, to ensure your plan still supports your evolving life path.
5. Mindset and Confidence
Financial freedom isn’t just about numbers; it’s about peace of mind.
Understanding your plan gives you confidence to make decisions calmly and intentionally — not reactively.
It also helps you engage with regulated advisers from a position of strength, if and when you choose to.
Education Over Influence
At the Academy of Life Planning, we believe knowledge is the ultimate safeguard.
We don’t take fees based on assets under management, and we don’t sell financial products. Instead, we teach you how to assess your own situation, evaluate the pros and cons of each approach, and decide what’s right for you.
Our commitment is simple: no bias, no pressure, no conflicts — just clarity and empowerment.
In Summary
The spike in decumulation complaints shows what happens when people outsource understanding to others.
Retirement planning shouldn’t be an act of faith — it should be an act of clarity.
By learning the principles of sustainable income, risk awareness, and personal alignment, you protect yourself from dependency and disappointment.
With education, you don’t just manage your wealth — you master it.
Next Step
Explore our Planning My Life self-directed course or book a session with a Financial Life Coach to model your personal retirement scenarios.
Together, we’ll help you find the confidence to make informed, values-led choices — for life.
Need Help Making Sense of Your Retirement Plan?
You don’t have to do it alone.
Our Financial Life Coaches offer one-to-one, product-free financial planning support — helping you build clarity, confidence, and control over your decisions.
We’ll guide you through your income options, model your retirement scenarios, and help you design a plan that reflects your goals and values — without recommending or selling financial products.
💬 Book a confidential session today
Discover how education-led financial coaching can empower you to make informed, independent decisions for life.
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