Consider whether you want to retire at your Normal Retirement Age (65) or whether you would like to continue working. Track down any previous pension benefits and work out how much money you are likely to have in retirement.
Six months before your retirement date
Consider how you might want to take your pension benefits, there is a summary of your options below. Contact the Scheme Administrator to get a retirement quote for your preferred option.
When you reach your Normal Retirement Age, there are three options available to you:
A full pension
Have a guaranteed income for life with a full pension. This will be paid into your bank account on a monthly basis and will receive annual increases in line with the Scheme rules.
A cash lump sum and reduced pension
Take a smaller monthly pension in exchange for a tax-free cash lump sum. You can take up to 25% of your pension tax free. The higher the cash lump sum you take, the lower your annual pension will be. Taking a cash lump sum at retirement does not reduce the amount of pension payable to your dependants when you die.
Transfer your benefits out of the Scheme
You could transfer your pension to another arrangement to take advantage of other options available. Please be aware that if your transfer value is over £30,000 you will need to take financial advice before you can transfer out.