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Investment decisions leading up to retirement

If you’re less than 12 months away from your selected retirement age, you’ll probably already know how you intend to take your money and, hopefully, your pension savings will be invested accordingly.

However, if you haven’t given this much thought, you need to ask yourself two important questions:

Is my selected retirement age still right for me?

If you think you may not be able - or want - to take your money at your selected retirement age, you have the option to delay taking it. 

See ‘If your plans change’ for more information.

Do my current investments reflect the way I intend to take my money?

Assuming you still intend to take your money at your selected retirement age, you can choose to take it as:

  • Cash, either in full or by taking partial lump sums
  • A guaranteed income (an annuity)
  • Flexible income (drawdown)
  • Any combination of the options above

So, it’s important, if you haven’t already done so, to ensure your pension is invested in a way that matches how you plan to take your money. 

We have a range of investment options, including our Target Date Funds, and lifestyle profiles that can help you to do this. 

For more information about the things you’ll need to think about please go to 'Investing as you approach retirement'.

There are also some additional considerations to be taken into account if you’re thinking of:

Investing in a lifestyle profile

A lifestyle profile is an investment strategy that automatically moves your money into less risky funds gradually over a period of time, with the aim of protecting your pension savings as you get closer to retirement. For that reason this type of investment normally works best for those who invest in one at least three years before their selected retirement age.

Leaving your pension pot invested

If you are planning on taking a flexible income, it's important to choose an investment approach for the money left invested that best suits your objectives for the future. Find out more about your investment options with a flexible income.

Responsible investing

Find out how your money is invested to make a difference on our Environment, Social and Governance Hub.

Your options for taking your money

You have the flexibility to decide when and how to use your savings.

Your State Pension

Find out more about the State Pension, where you can go for more information and how much you might get when you reach your State Pension age.