Plan for your future with expert retirement guidance
Will your pension provide the retirement income you need?
We believe that people should have a good standard of living in retirement. This is reliant on two factors: having a sufficient pension fund and being in good health to enjoy it.
Statistics suggest that we are living longer – according to the Office for National Statistics, someone aged 65 in the UK can now expect to live for around another 20 years on average, so a retirement can easily last two decades or more. That's great news – but those years come at a cost. The Pensions and Lifetime Savings Association publishes Retirement Living Standards setting out how much income a single person or couple needs for a minimum, moderate or comfortable lifestyle in retirement. You can see the latest figures at retirementlivingstandards.org.uk.
THE VALUE OF INVESTMENTS AND ANY INCOME FROM THEM CAN FALL AS WELL AS RISE AND YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.
The early years
Travelling, hobbies, enjoying life. This stage typically requires the most income as you're active and want to make the most of your freedom.
The middle years
More time at home, fewer expensive trips. Income needs may reduce somewhat, but you'll still want to maintain your lifestyle.
Care considerations
Potential care costs and health needs. This stage can require significant funds if care is needed - planning ahead is crucial.
Retirement can bring unexpected expenses that many don't plan for:
From age 55 (rising to 57 from April 2028), you can normally start taking money from your pension – and you have more choice than ever in how you do it.
Your lump sum
You can usually take up to 25% of your pension pot as a tax-free lump sum, with the rest used to provide an income. How and when you take it can make a big difference to the tax you pay.
Flexible income
Keep your pension invested and draw an income as and when you need it. Flexible, but your fund remains invested – so its value can fall as well as rise, and it could run out if withdrawals aren't sustainable.
Guaranteed income
Exchange some or all of your pot for a guaranteed income for life. Rates vary between providers and can depend on your age, health and lifestyle – so it pays to shop around rather than accept your provider's offer.
Combine your options
You don't have to choose just one route. Many people combine options – for example, securing essential outgoings with an annuity while keeping the rest in drawdown – or phase their retirement gradually.
Retiring early is achievable with the right planning, but it asks more of your pension: your fund needs to last longer, and your State Pension won't start until your late 60s. We can help you work out whether your pot will support the retirement you want – and what to do if there's a gap.
If you're over 50, you can also get free, impartial guidance on your pension options from Pension Wise, a government service from MoneyHelper. Guidance explains your options – advice, which is what we provide, gives you a personal recommendation based on your circumstances.
* Pension consolidation advice is available. If you hold a Defined Benefit Pension Scheme or Defined Contribution pension with a guaranteed minimum pension or income, any advice you receive will be through a dedicated referral advice service and a specialist within our network.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The value of your investment and income from it can go down as well as up. Your eventual income could depend on the size of the fund at retirement, future interest rates and tax legislation.
Get in touch for expert pension advice tailored to your goals and circumstances.
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