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 savings pot is invested in a way that matches how you plan to take your money.
There are a range of 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
It’s important to be aware, should you choose to invest in a lifestyle profile, at this late stage, that this type of investment normally works best for Member who invest in one at least three years before their selected retirement age.
Leaving your savings pot invested
If you intend to leave your savings pot invested beyond your selected retirement age, it’s important to make sure you are invested in a fund that offers a balance between protecting your savings and providing sufficient investment growth to support your requirements for income.
Find out how your money is invested to make a difference on our Environment, Social and Governance Hub.