Making decisions about your pension can be complicated. So, you may need some help – either guidance or professional advice. Especially when it comes to taking money out of your pension – choosing what to do with your pension savings at retirement is a big decision. And it’s often possible to get more for your money by shopping around.
Your guidance and advice options…
The Financial Conduct Authority has put together some helpful information on their website. It explains why you should stay calm and not rush into any financial decisions – and how to avoid pension scams. We recommend you read this before making any decisions about your pension savings.
This can be a very worrying time but hasty decisions could have a big impact on your future. Remember you’ll receive only the current value of your pension pot. So, if you access your pension savings now, you might miss out on any increases in value in the future if markets recover. It’s a good idea to focus on your needs in the long term rather than on current events, and to take advice before making decisions.
If you’re experiencing financial difficulties, it’s worth exploring any other savings you might have before taking your pension savings and looking at what other sources of support are in place. More information can be found on the MoneyHelper website. MoneyHelper also has a debt advice locator tool to help you find out where you can go to get free debt advice.
1. Do your research
- Get together all the facts about your pension savings
- Make sure you have a good idea of how much you have in your pot(s).
Check your pot with us in your Online Account.
- If you’re thinking about combining your pensions – find out about the charges, features and services of the pension you want to transfer in and the one you want to transfer to, so you can compare them.
Find out how to combine your pensions with The People’s Pension.
- If you’re thinking about accessing your pension – explore all of the different ways you can take your pension savings.
Learn about your options with The People’s Pension.
2. Be aware of pension scams
- Get guidance on how to spot the signs of a pension scam – if something seems too good to be true, chances are it is.
- And remember that we will never contact you out of the blue to ask for any of your personal or account information, such as your password or sign-in details.
3. Get free pensions guidance
- As well as doing your own research, it’s important to get guidance about the different options you could choose.
- Guidance explains the basics about pensions and retirement, and sets out your options. But it won’t recommend what’s best for you.
- Guidance is free. And it comes in different forms – a reliable website, a leaflet, or a chat with someone face-to-face or on the phone.
Where to get pensions guidance:
- You’ll find information about combining your pensions on our webpage about pension transfers.
- You can also learn more about retirement planning on our website – such as the option to take your pension pot a bit at a time if you have over £10,000 in your pension pot.
- For online, face-to-face or telephone guidance, you can contact Pension Wise – a free and impartial government service.
- As a member of The People’s Pension, you can use the LV= retirement income calculator to get a quick overview of your options at retirement plus a free detailed guide.
A mid-life MOT
4. Consider getting pensions advice
- Maybe you’ve done your research but you still have some unanswered questions. A financial adviser could help.
- Advice can give you a detailed recommendation about the best option to suit your individual circumstances.
- There’s normally a fee for financial advice like this, but how much you’re charged will depend on where you go to get advice…
Where to get pensions advice:
- Talk to your financial adviser – or if you don’t already have one, you can find a financial adviser on Unbiased or MoneyHelper. If you want advice about taking your pension savings, find an adviser who specialises in retirement planning.
- Be aware of what type of advice you’re getting – is it ‘restricted‘ or ‘independent‘? Learn more from Pension Wise.
- As a member of The People’s Pension you have access to LV=’s financial advice service. Please note, LV=’s telephone advice service is a paid-for service. They’ll explain the cost of this service before offering you advice.
5. Make sure you understand the tax implications
- When deciding which option is best for you, you’ll need to think about the tax implications of each option. Find out about pension tax and, if you’re thinking about taking money out of your pension, compare your options at retirement.
- You might want to get expert financial advice to help you understand how much tax you’ll pay.
- You can learn more about tax and getting advice on the Pension Wise website.
Extra retirement support for our members
We’ve teamed up with LV= to provide our members with access to personalised, regulated financial advice.
However, you need to make sure this kind of information is right for you.
By clicking the button below you confirm you have read the information on this page and you are a member of The People’s Pension.