Sharon Taylor, 64, began seriously saving for her retirement 10 years ago by putting any money she got from pay rises into her workplace pension, and putting £150 a month into an investment account
A couple who grafted for five decades and accumulated £350,000 in investments with the aim of enjoying retirement say their pensions don’t stretch to cover their monthly outgoings.
Sharon Taylor, who is now 64, said she started putting away as much as possible in a bid to seriously prepare for retirement a decade ago. She has been funnelling any additional income from salary increases into her workplace pension scheme, while also depositing £150 monthly into an investment account. She retired at 63 in March last year and by that point Sharon, from Sheffield, and her husband Sean Taylor, 61, had amassed £350,000 in investments.
They thought this would be enough to sustain them until reaching state pension age at 67. Their original plan involved withdrawing £1,000 monthly from an easy access savings account, but they’re now forced to take out an additional £500 each month due to spiralling living costs.
Sharon and Sean’s combined income from private pensions currently stands at just £1,400 per month, falling short of their £1,700 monthly expenditure. The pair now regret not putting away even more before finishing work. Fresh figures from Pensions UK reveal that a couple requires £62,700 annually to maintain a comfortable lifestyle and to retire comfortably at 60, a pension pot of £685,950 is needed.
Sharon, who previously worked in customer services, said: “I never expected to have to be frugal in my retirement. Our joint monthly pension doesn’t actually cover our bills.
“The cost of everything has gone up; no amount of planning could predict how much the cost of living has gone up. I don’t want to have to scrimp and save; we’ve worked our whole lives to enjoy ourselves. We thought we’d saved enough, but we haven’t.”
From the moment she entered the workforce aged 18, Sharon has consistently paid roughly 5% of her salary into her workplace pension scheme. A decade ago, Sharon started preparing for retirement, and whenever she received a pay rise (typically ranging from 1% to 4%), she channelled the additional income straight into her pension fund.
“I always knew I wanted to retire early,” Sharon explained, noting she’ll be eligible for her state pension at 67. Following the death of Sean’s parents four years ago, the pair invested his entire inheritance into a stocks and shares ISA and purchased shares in high street banks, supplementing these investments with £150 monthly from their salaries when feasible.
Upon Sharon’s official retirement in March 2025, she merged all but two of her pension pots into a self-investment pension plan. At the point of retirement, the couple’s combined net worth stood at £750,000, encompassing two properties and £350,000 in investments.
“We thought this would be ample to retire on,” she explained. They allocated £5,000 of their investments into an easily accessible savings account for repairs, and £10,000 into a holiday fund, which they anticipated would cover them for two years.
Yet this year alone they’ve already been forced to shell out £3,000 on a replacement central heating system and £2,000 on a new front door, completely exhausting their entire budget. When Sharon hung up her work boots, she and Sean, who had retired five years prior at 55 due to ill health, had grand ambitions to spend their golden years exploring the world.
However, a single fortnight’s break in Italy set them back a staggering £10,000. “One holiday and the budget is gone,” she said.
Sharon receives a modest £450 monthly from the two pension schemes she can tap into, while Sean draws £950 each month from his occupational pension. The pair also bring in £350 monthly by letting out a property to a relative, but with household bills and vehicle finance totalling £1,700, there’s precious little remaining to see them through the rest of the month.
Sharon had originally intended to take out £1,000 monthly from an instant access savings pot to cover groceries and other outgoings, but escalating prices have forced her to dip in for an additional £500 each month.
“I’ve worked for nearly 50 years. I never expected not to have enough,” she said.
Instead of savouring their retirement years, Sharon and Sean have been forced to watch the pennies, opting for coffee and cake or a morning meal out rather than an evening dinner.
“We’re not going to be able to do any more holidays this year, or do other things we’d like to,” she said. Sharon has contemplated returning to part-time employment to boost their income, and was last year contacted by an online travel agency.
Unfortunately, the monthly charges exceeded her earnings from the venture, prompting her to abandon the scheme. Reflecting on her past decisions, Sharon regrets not having saved more before stepping down from work.
“I wish I’d put more into my pensions, so I didn’t have to stretch out what I have in the bank until the end of the month. Before you retire, really sit and think about whether you can put more into your savings.
“Even if it’s just £5 or £10 a month. Don’t make the same mistakes we made, thinking you’ll have enough.”
