Why 2026 Could Be the Best Year to Move

Retirement can mark a fundamental change in your financial life. For decades, your focus may have been on building wealth (contributing to pensions, investing regularly and accumulating assets), however, when you retire, that will likely change. You are no longer building your assets, you are relying on them to provide income, potentially for the rest of your life.

Since the pension freedoms introduced by the UK Government in 2015, individuals with defined contribution pensions have been able to access their retirement savings with far greater flexibility with flexi-access drawdown allowing you to take up to 25% tax-free (subject to allowances), leaving the remaining funds invested to withdraw income as needed.

This flexibility has transformed retirement planning. However, it has also increased responsibility and risk to the individual. Without a clear structure, drawdown can expose you to significant financial uncertainty. That is why a Central Retirement Process (CRP) is now required before entering drawdown.

The Risks of Drawdown

Drawdown is not simply a withdrawal mechanism. It is a long-term income strategy that needs to withstand market volatility, inflation and increasing life expectancy. The key risks include:

Sequencing Risk

If markets fall early in retirement while you are withdrawing income, the combined effect of losses and withdrawals can permanently reduce your fund’s longevity. Early negative returns can have a disproportionate impact on long-term sustainability.

Longevity Risk

Many people underestimate how long retirement may last. A healthy 65-year-old could easily spend 25 to 30 years in retirement. Your pension must therefore potentially provide income for longer than you thought.

Inflation Risk

Over long periods, even moderate inflation erodes purchasing power. An income that feels comfortable today may not maintain the same lifestyle in 15 or 20 years.

Behavioural Risk

Emotional decision-making during periods of market volatility (such as reducing investment exposure after a downturn) can undermine long-term outcomes.

These risks do not mean drawdown is unsuitable. They mean it requires structure, co-ordination and ongoing oversight.

What Is a Central Retirement Process?

A Central Retirement Process (CRP) is a structured, repeatable framework for managing retirement income. It places retirement planning at the centre of financial decision-making and integrates every moving part into one cohesive strategy.

Rather than viewing drawdown as a product, the CRP treats retirement as an ongoing financial process that includes:

• Lifetime cashflow modelling
• Sustainable withdrawal analysis
• Investment strategy alignment
• Tax planning co-ordination
• Liquidity management
• Ongoing monitoring and review

It aims to ensure that income decisions, investment strategy and tax planning are aligned and regularly assessed.

Why a CRP Is Required When Entering Drawdown

If you are thinking about buying your first home, moving up the ladder, or remortgaging, 2026 could present real opportunity.

After a period of rate uncertainty, the market is settling. Lenders are competing again, product choice is improving, and sellers are becoming more realistic on pricing. For buyers and movers, that creates negotiating power, but only if you’re prepared.

First-time buyers are finding that with the right guidance, options such as family support, gifted deposits, or longer-term fixed rates can make homeownership more achievable than they first thought.

Home movers are discovering they may have more equity than expected, opening doors to better properties or improved borrowing terms.

But today’s market isn’t just about securing the lowest rate. It’s about understanding affordability changes, lenders’ criteria, credit positioning, and how to structure your mortgage for the next five to ten years — not just the next deal.

The right advice can mean the difference between missing out and moving forward with confidence.

Whether it’s your first step onto the ladder or your next chapter, preparation and expert guidance could make 2026 the year you make your move — and make it wisely.

This article does not constitute advice and you should always seek professional advice from a mortgage adviser before making lending decisions.