Understand your pension

Whether this is your first workplace pension, or you've gathered up a few from previous employers, we can help you get to know the basics about your pension. We're here to help you feel more in control of your future.

Do you already have a good understanding of the basics about your pension? If so, visit the Master your pension page instead to take the next steps.

HELPING YOU UNDERSTAND YOUR PENSION

Want to get to know your pension and better understand the basics? We'll explain how your workplace pension works and show you how you can check what you've got, understand whether it's enough and discover what do to next. Let's get started with the basics.

1. WHAT HAVE I GOT?

The first step to understanding your pension is finding our what's in your pot. For your Scottish Widows pot, our app is the easiest way to check and manage your pension. Download the app on your phone and we'll show you how can make the most of it in the video below.

 

If you don't already have the app, you can download it from the App store or Google Play. Scan the code to download now.

 

You can also manage your pension through your online services.

2. IS IT ENOUGH?

Research by the Pensions and Lifetime Savings Association (PLSA*) states that you'd need at least £12,800 to live on each year to cover your basic needs, at least £23.300 a year for a moderate retirement and at least £37.300 a year for a comfortable retirement with greater financial freedoms

Now you know what's in your Scottish Widows pot, you can add up any other pension pots you may have to work out your total pension savings. But when will you actually be able to retire? To help you find out, try our Meet Your Future Self tool.

MEET YOUR FUTURE SELF

 

 

*PLSA Research 2022

3. WHAT SHOULD I DO NEXT?

3. WHAT SHOULD I DO NEXT?

If you don't have much time, there are a few things you can do right now to feel more in control of your future. Have a look at each of these below:

3a. Check your pot and update your beneficiaries

3a. Check your pot and update your beneficiaries

Through the Scottish Widows App. you can see the value of your pension, select your retirement age and update your beneficiaries. It's important you keep these details up-to-date so we have a record of who you want your savings to go to should the worst happen.

FIND OUT MORE ABOUT THE APP

3b. Trace old pensions and consider combining

3b. Trace old pensions and consider combining

Tracking down previous pensions might help give your finances a boost. It's worth considering if combining your pensions is right for you, as it could make your retirement savings easier to manage.

CONSIDER COMBINING

3c. Make the most of employer contributions

3c. Make the most of employer contributions

When you pay into your workplace pension, your employer will also make contributions as well, and you'll benefit from tax relief. You should speak to your employer if you want to change your contributions. But this is at your discretion.

REVIEW YOUR CONTRIBUTIONS

Pensions are a long-term investment. The retirement benefits you receive from your pension plan will depend on a number of factors including the value of your plan when you decide to take your benefits which isn’t guaranteed and can go down as well as up. The value of your plan could fall below the amount(s) paid in. The tax treatment of your plan depends on your individual circumstances. Your circumstances and tax rules may change. Making a one-off payment means you will not benefit from an employer contribution.

BE MONEY WELL

BE MONEY WELL

Understanding the basics about your pension and wider finances is key to feeling more in control of your future. Our Be Money Well website can help with free lessons, resources, and expert sessions to improve your wider financial wellbeing.

VISIT BE MONEY WELL

GOT QUESTIONS?

GOT QUESTIONS?

If you have any questions on the basics about your pension, you might find the answers in our "Understand Your Pension' FAQ document.

READ THE FAQ

Videos

These videos will help you gain a better understanding of pensions

Will my pension be enough for retirement?

Can I Combine My Pensions?
 

Does my working pattern affect my pension?

How do I find out how much is in my pension?

How safe is my pension?
 

What happens to my pension when I die?
 

How does a workplace pension work?

6 tips to make the most of your pension

How can I spot a pension scam?