• Donnington Grove

Happy Retirement!

If you have made pension contributions into multiple pension pots, then you will need to contact each fund separately for a statement.

There are many things to consider as you approach retirement. It is good to start by reviewing your finances to ensure your future income will allow you to enjoy the lifestyle you want.You should also consider how you’ll stay active and social after you leave work.
It is never too early to start thinking about your retirement. Use Money Advice Service’s pension calculator to help you work out how much money you will need in retirement and how much you are saving.
What you can do with your pension pot
If you have saved into a defined contribution pension scheme during your working life, you need to decide what to do with the money you’ve saved towards your pension when you retire. There are lots of options to consider, and it’s important you make the best choice to meet your future needs.

What is a pension pot?
Your pension pot is the total amount of pension contributions you and/or your employer have made to save for your retirement. Your pot also includes any capital growth earned from the fund’s investments, depending on how your scheme was set up.
Your pension pot doesn’t include your State Pension which is provided by the government.

Your fund should send you a pension statement once a year that tells you how much your pension pot is worth, or there may be an option to check this on their website.
If you have made pension contributions into multiple pension pots, then you will need to contact each fund separately for a statement.

How can I use my pension pot?
You have the freedom to choose how you use each of your pension pots, based on what best suits your needs. Each option comes with its own set of rules, fees, benefits, risks and tax issues.
Deciding what to do with your pension pot can be complicated – there are many factors to consider and financial terms to understand.

You don’t have to rush into anything. You don’t want to end up in a situation where you’re unable to use your pension pot money, or the money has run out. Think about your:
l lifestyle
l partner or family
l age
l long-term health and life expectancy
l current and future care needs
l other sources of income
Not all pension schemes and providers will offer every option. Talk to your pension fund provider to find out what’s available. Your options may include:
l doing nothing – leave your money invested in your pension scheme
l withdrawing some or all of your pension pot as a cash lump sum
l buying an annuity
l investing part or all of your
pension onto the stock market (income drawdown)
l a mix of these options, depending on the size of your pension pot.

Seek advice from a regulated independent financial adviser before making any decisions and consider all your options carefully.