Top tips to prepare for retirement using savings accounts
Planning for retirement can feel like a long way off, especially when life is busy. But taking a little time to think about the future can help you feel more prepared. Even small steps you take now can make a difference later.
Published:31 March 2026
Why retirement planning matters
Our research shows that just over a third (35%) of people with a Cash ISA plan to use their savings towards retirement. While pensions are often used when people save for retirement, savings accounts can also complement them and help you build extra financial security for the future.
Starting early gives you more time to save and understand your options and could help you plan for the lifestyle you want when you retire. Even if you start later, there are still ways to build confidence and get on track to get the most out of retirement.
Saving for retirement at every age
Whatever stage of life you’re at, there are different actions you can take to help prepare.
Your 20s and 30s: building good habits
- Try saving regularly, even small amounts can add up over time – a recent Tesco Bank survey found 43% of people pay into a Cash ISA from weekly or monthly earnings.Try saving regularly, even small amounts can add up over time – a recent Tesco Bank survey found 43% of people pay into a Cash ISA from weekly or monthly earnings.
- If your income rises, consider increasing your pension contributions at the same time.If your income rises, consider increasing your pension contributions at the same time.
- If you can, build an emergency fund so you don’t need to use money set aside for long‑term goals.If you can, build an emergency fund so you don’t need to use money set aside for long‑term goals.
Your 40s and 50s: staying on track
- Check in on your retirement savings each year.Check in on your retirement savings each year.
- Increase the amount you contribute to your pension from your salary if you’re able to.Increase the amount you contribute to your pension from your salary if you’re able to.
- Review your overall money situation and look for ways to reduce any money worries or regular payments.Review your overall money situation and look for ways to reduce any money worries or regular payments.
- If you have any debts, there’s lots of help and advice available.If you have any debts, there’s lots of help and advice available.
This is also the time many people start asking “how much will I need to retire?”, this is a good time to revisit your plans and adjust them if you need to.
Your 60s: feeling in control
- Keep up positive saving habits, whether retirement feels close or still a few years away.Keep up positive saving habits, whether retirement feels close or still a few years away.
- Think about the lifestyle you want and how long your savings may need to last.Think about the lifestyle you want and how long your savings may need to last.
- Consider how any other investments could work alongside your savings and pension.Consider how any other investments could work alongside your savings and pension.
- You may want to keep some savings flexible so you have easy access when you need them.You may want to keep some savings flexible so you have easy access when you need them.
Over 65s: make the most of ISAs
From April 2027, ISA rules will change for many adults. The annual Cash ISA limit for adults under 65 will reduce to £12,000. If you’re 65 or over, you’ll continue to have a £20,000 annual Cash ISA limit.
These changes were confirmed by the UK Government as part of ISA reforms due to take effect in April 2027*. You can read more in our Autumn Budget Guide.
*Source: Gov “Tax-free savings newsletter 19 — November 2025”
How much do you need for retirement?
This is a big question, and there’s not an easy answer. It really varies per person but a few things to think about are:
- your monthly living costsyour monthly living costs
- the lifestyle you’re aiming forthe lifestyle you’re aiming for
- any big financial commitments you may still haveany big financial commitments you may still have
- the age you’d like to retirethe age you’d like to retire
If you need any help choosing the right account, or want to learn more about savings, take a look at our guides on Savings and ISAs.
Research conducted by Opinium Research on behalf of Tesco Bank. Survey of 2,000 UK adults weighted to be nationally representative, with an additional boost to achieve 1,380 UK adults who hold at least one Cash ISA. Fieldwork was undertaken 27 to 30 January 2026.