Keeping your pension on track.

As you approach your retirement date, you need to think about what you want to do with your pension fund.

To help you with your planning, we’ve put together some information on what to consider now and what to expect when you decide to take your pension benefits. You’ll probably want to discuss your options with your financial adviser, if you have one. If you don’t have an adviser, visit www.unbiased.co.uk to find local independent financial advisers (IFAs). 

Your pension fund

It’s important that you consider how much income you might get from your pension fund. Listed below are some of the things that you might like to do now:

• Check your annual benefit statements. These will give you an indication of how much pension income you might get when you take your benefits. If there’s anything you don’t understand on your statement, please call us and we’ll be happy to explain what your statement means and how it works, or speak to your financial adviser.
• Check whether you have pensions with other companies or employers. Find out who they are and chase them up for information. If you need help, visit the Pension Tracing Service, run by the Government.
• Get a State Pension forecast.
• Consider getting advice about bringing your pension funds together in one place. This might make things easier to deal with. There might be disadvantages in doing this, so make sure you fully understand before you commit yourself.
• Consider whether you want to pay more into your pension fund to give you the chance of a higher income in retirement or if it would be better to put this money somewhere else.  Your pension fund is just one of the ways you can save for your retirement.
• Think about where your pension fund is invested and whether you’re happy with the amount of risk that you’re taking. Your financial adviser will be able to give you guidance, depending on your attitude to risk. If you don’t have an adviser, visit www.unbiased.co.uk to find local independent financial advisers (IFAs). 

Review your personal finances

You need to think about whether you can afford to take your benefits. For example, you should think about:

• Any financial commitments you have, such as a loan or mortgage - will you be able to pay these off before you stop working? If this won’t be possible, you should think about how you’ll meet the payments when you retire.
• Any savings or investments - will you need to rely on them, and do you need to give any notice to access them?