Procrastination in Retirement Planning: The Hidden Cost

Introduction: The Dangerous Myth of ‘Sorting It Later’

“I’ll sort out retirement closer to the time.”

In this article, Steve Rowe, Chartered Financial Planner, why this is one of the most common objections financial planners hear. On the surface, it sounds harmless — even sensible. Why worry about something decades away when today’s priorities feel more pressing? The mortgage needs paying, children need supporting, and day-to-day costs are already high.

But procrastination comes at a price. By delaying, many people risk undermining the very lifestyle they’ve worked so hard to build. According to research from Fidelity International, a large proportion of workers don’t seriously prioritise retirement saving until their 40s or 50s — far later than financial experts recommend. The same study showed that just 15% of 18–34-year-olds focus on retirement saving, compared with 35% saving for property and 29% covering daily expenses.

The problem is that waiting isn’t a strategy — it’s a gamble. And the stakes are high. A report from BlackRock in 2024 revealed that half of UK Defined Contribution pension holders believe they can’t afford to save enough, while 51% admit they should be saving more to enjoy a comfortable retirement. Yet many still put it off, hoping things will somehow “work out.”

The truth? Retirement doesn’t just happen. It has to be planned for. And the longer you wait, the fewer options you have.

“We often meet clients who know retirement planning is important but believe they’ll tackle it later. The trouble is, later usually means less time, fewer choices, and more stress. The earlier you begin, the more freedom you give your future self.”

Luke James, Chartered Financial Planner, Lucent

Why People Delay Retirement Planning

If retirement is such a critical milestone, why do so many people put it off? The answer is rarely laziness more often, it’s a mix of financial pressures, competing priorities, and psychological blind spots.

1. Everyday financial pressures - For most people, short-term costs win out over long-term savings. Fidelity International found that by mid-career (35–44), 40% of employees still prioritise everyday expenses over retirement contributions. When household budgets feel stretched, pensions are often the first thing to slip down the list.
2. Competing life goals - Younger workers often focus on saving for a first home or raising a family before thinking about later life. Property, childcare, and education costs all compete with pensions for attention — and retirement, still decades away, rarely comes out on top.
3. Psychological distance - Retirement can feel like a far-off concept, especially in your 20s, 30s, and even 40s. Behavioural scientists call this “present bias” — we naturally give more weight to today’s needs than tomorrow’s. The result? People tell themselves they’ll start “later,” not realising how much that delay costs in lost compounding and reduced flexibility.
4. False reassurance - Auto-enrolment pensions have helped more people save, but many assume these contributions will be enough. In reality, minimum contributions rarely provide for the lifestyle people imagine in retirement. Without checking the numbers, this misplaced confidence leads to procrastination.

Together, these factors create the perfect storm: understandable in the moment but damaging in the long run. The danger isn’t just financial shortfall — it’s waking up too late and realising your options have narrowed.

The Cost of Delay: Retirement Gap in Numbers

Procrastination might feel harmless in your 30s or even 40s, but the numbers tell a different story. Waiting to engage with retirement planning reduces not only the time your money has to grow, but also the options available when you finally act.

According to the Pensions and Lifetime Savings Association (PLSA), a “comfortable” retirement for a couple in the UK costs around £59,000 a year. Yet the average pension pot at retirement is less than £120,000. At that level, the funds would last just a couple of years at a comfortable standard of living.

Scottish Widows’ research shows the impact of this gap on people’s confidence. More than a quarter (27%) of respondents worry they will need to work longer than planned simply to afford retirement — in some cases into their late 60s or even 70s. For many, that doesn’t just mean postponing holidays or hobbies but delaying freedom altogether.

The picture is no brighter for those in their mid-career. Fidelity International found that by the age of 35–44, only 28% prioritise retirement saving — compared with 40% still focused on day-to-day costs. With retirement just two decades away, that lack of focus can quickly compound into a serious shortfall.

And for those in their strongest earning years (45–54), a Phoenix Group survey in 2023 revealed that 59% still feel uneasy about their retirement savings. This group, often juggling mortgages, children, and ageing parents, should be accelerating their plans — but many remain stuck in delay.

The hard truth is this: every year spent waiting makes the climb steeper. The later you start, the harder it becomes to build the financial foundation needed for the retirement you imagine.

Common Myths and False Assumptions

When people put off retirement planning, they often reassure themselves with simple “I’ll just…” statements. On the surface, these sound practical. In reality, they can be risky shortcuts that mask the need for proper planning.

Myth 1: “I’ll just rely on my workplace pension.”

Auto-enrolment has been a positive step, but minimum contributions are rarely enough to fund the lifestyle many pictures in retirement. Without topping up, the gap between expectation and reality can be vast.

Myth 2: “I’ll just downsize later.”

While property is a valuable asset, it’s not always the safety net people assume. Housing markets fluctuate, moving costs eat into proceeds, and emotional ties often make downsizing harder than expected. A property plan is not a substitute for a retirement plan.

Myth 3: “I’ll just work longer.”

For some, extending a career is possible. For others, health challenges, redundancy, or caring responsibilities can cut that choice short. Relying on extra years of income is risky when those years may not be guaranteed.

Myth 4: “I’ll figure it out closer to the time.”

The most common assumption of all. But the later you leave it, the fewer tools you have. Tax allowances may be lost, compounding power diminished, and flexibility reduced. Retirement planning works best when it’s proactive, not reactive.

The danger with these myths isn’t that they’re impossible — sometimes downsizing or working longer is part of the solution. The risk is assuming they’ll solve everything. Without a plan, these “back-up options” can quickly become a source of regret.

The Lifestyle Trap: Living Rich, Not Building Wealth

One of the biggest reasons people delay retirement planning is the belief that a strong income equals long-term security. But high earnings don’t always translate into lasting wealth.

As income rises, so too do expenses — bigger homes, newer cars, private school fees, luxury holidays. This is called lifestyle inflation. It feels comfortable and sustainable while pay cheques arrive, but it does little to build the reserves needed for financial independence later.

The danger lies in mistaking “living well now” for “being prepared for the future.” Many people only discover the gap when their income stops — and suddenly the lifestyle they’ve built is far more expensive to maintain than their savings can support.

Here’s the question to ask: if your income stopped tomorrow, how long could you maintain your current lifestyle? If the answer is measured in months, not years, the wealth you think you’ve built may not be as secure as it looks.

The antidote isn’t to sacrifice enjoyment today, but to balance lifestyle with disciplined, forward-looking planning. When saving and investing grow in step with income, wealth accumulates alongside lifestyle — rather than being consumed by it.

The Squeezed Generation: Why Mid-Life Matters Most

If your 40s and 50s are supposed to be your strongest earning years, why do so many people in this age group feel unprepared for retirement? The answer lies in competing responsibilities.

According to the Phoenix Group (2023), 59% of people aged 45–54 feel uneasy about their retirement savings. At this stage, retirement is no longer a distant concept — it’s 10 to 20 years away. Yet many in this bracket are juggling:

• Paying off mortgages
• Supporting children through higher education
• Caring for ageing parents
• Managing volatile investment markets

These pressures can push retirement planning to the bottom of the list. But the stakes are higher now than ever. With fewer working years ahead, there’s less time to correct under-saving, less compounding power, and less flexibility to ride out downturns.

The “squeezed generation” sits at a crossroads. Delay now can lock in a funding gap that’s hard to close. But with targeted planning, even mid-life savers can make a huge difference to their financial future — especially when contributions and investments are structured strategically.

Expats & Extra Complexity

For those living or planning to retire abroad, procrastination can be even more costly. Cross-border living adds layers of complexity that many overlook until it’s too late.

• Lost contact with pensions: Moving overseas often means pension paperwork goes to old UK addresses, leaving pots untracked. Read our article: How Do I Find a Lost Pension?
• Cross-border taxation: Without the right planning, pension income drawn from the UK can be taxed twice. Double Taxation Agreements and NT tax codes can help, but only if set up in advance.
• Inheritance rules: From April 2027, most UK pensions will fall within a member’s estate for inheritance tax. Many expats assume pensions sit outside IHT — a costly misunderstanding.
• Currency risk: Holding a pension in sterling while spending in euros, dollars or dirhams can erode retirement income if exchange rates move against you.

For expatriates, the margin for error is even slimmer. Waiting until “closer to the time” risks unnecessary tax, reduced flexibility, and avoidable wealth erosion. Specialist advice can make the difference between a retirement plan that works abroad — and one that falls apart.

The Broader Impact: When Procrastination Scales

Retirement planning might feel like a personal issue, but widespread delay has consequences far beyond the individual. When too many people put it off, the effects ripple through society and the economy.

• Rising pensioner poverty: If savings fall short, more retirees are forced to cut back sharply, eroding quality of life.
• Greater reliance on state benefits: Gaps in private provision increase pressure on the welfare system.
• Strain on healthcare and social care: Financial insecurity is closely linked with poorer health outcomes and greater demand for public services.
• Reduced economic resilience: An underprepared population means less spending power in later life, dampening growth.

For governments, this trend is a structural challenge. For individuals, it means fewer choices, more vulnerability, and a greater risk of having to work far longer than planned.

The collective cost underlines an important truth: planning for retirement isn’t just about personal comfort. It’s about protecting freedom, resilience, and dignity in later life. By starting early and staying engaged, individuals not only safeguard their own futures they also help ease the wider strain on society.

What You Should Do Now

The most effective antidote to procrastination is action. You don’t need to have all the answers today — but every step you take now builds freedom and flexibility for the future. Here are some practical ways to start:

1. Start early or start now -The best time to plan was yesterday. The next best is today. Even modest contributions compound over decades, making later life easier and more secure.
2. Track down old pensions - Many people lose contact with workplace pensions when moving jobs. Consolidating or at least accounting for them ensures you don’t leave money on the table.
3. Increase contributions gradually - Adding even 1–2% more each year can make a significant difference over time. Think of it as paying your future self-first.
4. Model your future lifestyle - Cashflow modelling lets you see whether your current savings align with your retirement dreams. Testing “what if” scenarios (travel, healthcare, big one-off spends) makes planning real and actionable.
5. Seek professional advice - Specialist guidance brings clarity, removes guesswork, and often uncovers opportunities you wouldn’t find alone. A personalised plan turns vague fears into confident decisions.

Retirement planning isn’t about sacrifice — it’s about choice. The earlier you act, the more options you’ll have to shape the lifestyle you want.

Conclusion: Don’t Leave Your Future to Chance

Procrastination is easy. Life is busy, and retirement can feel like something far off on the horizon. But waiting carries a hidden cost less time, fewer choices, and a greater risk of falling short when it matters most.

The truth is that retirement planning isn’t about denying yourself today. It’s about protecting tomorrow ensuring that when work stops, your lifestyle doesn’t have to. By acting sooner rather than later, you give yourself freedom, confidence, and the ability to enjoy the years ahead on your terms.

At Lucent, we believe the best retirement plans aren’t about fear they’re about freedom. They’re not about numbers alone, but about giving you the clarity to spend, live, and flourish without hesitation.

If you’ve been putting retirement planning off, the most important step is simply to start. And if you’d like someone by your side to guide the process, we’re here whenever you’re ready.

Suggested Further Reading

Is a Workplace Pension Enough to Retire On?

15 Reasons Why Retirement Planning Is Important

Securing a Comfortable Retirement Lifestyle

Disclaimer: This article does not constitute financial advice. We recommend that you speak to a qualified financial planner for advice tailored to your individual circumstances and goals. Financial markets may go up or down, and you are not guaranteed a return on your investment. Past performance is not necessarily a guide to future performance.