Coming up to retirement

How long until retirement?

If you're thinking about what you may do in retirement, and whether you'll have enough money to do it, you should take our five-step check:

1. Check your statements or log in to see how much income your plan might give you. The value of your plan can go down as well as up, and could fall below the amount paid in. 
2. Find out how much State Pension you might receive and when you might receive it. 
3. Check any other pension plans you have, including tracing any pensions you’ve lost track of (for example, any pension plans you might have with old employers). 
4. Check any other savings plans. Retirement income can come from various sources, not just your pension. Use our retirement calculator to help you find out what your income and lifestyle could be in retirement. Having the value of any pensions, savings and investments you have will help you get the most out of the calculator.
5. Once you know what you may have, review your potential income against the retirement living standards. This will let you see if you’re on track to achieve the lifestyle you want. You can also use MoneyHelper’s in-depth budget planner to help you understand your outgoings. 

Want to boost your savings?

• If you can, increase your regular payments. This may mean that your employer will increase their payments too.
• Consider making lump sum payments. Putting any additional savings, bonuses or inheritance into your pension plan is another way of boosting your savings. You may also get tax relief on payments.

Want to reduce the risk of your savings taking a sharp fall in value?

• Review your investment choices and consider moving at least some of your savings into funds with less risk. It’s a good idea to think about whether you’d like to start moving some of your existing savings into funds with less risk as you approach retirement. Although moving into lower risk funds reduces the growth potential of your plan, it aims to help protect your plans’ value as you near your selected retirement date. Even lower-risk funds will fluctuate in value.
• You may be invested in a lifestyle strategy. If you are, your plan will move into funds with less risk automatically. You should still regularly review how your plan is invested, to make sure it still reflects how you feel about risk and is aligned to how you want to take your retirement benefits.
• If you aren't invested in a lifestyle strategy, you may want to think about using one.

Have your retirement plans changed?

• If, after reviewing your plan, you want to change your selected retirement date, contact us to let us know. It’s very important that your records show the correct selected retirement age, particularly if your savings are in a lifestyle strategy. This is because your investments are moved into low-risk funds with lower growth potential as you near retirement and their value may not keep up with inflation.

Your options when it comes to accessing your retirement savings

There are options around how you access your retirement savings. Please visit our dedicated retirement area for information, guidance and a range of simple tools to help you plan your retirement and consider the most suitable retirement option for you.

Other important things to do in the run up to retirement

If you're unsure what action to take - seek help. Review your pension details and use the calculators and tools we have for you here. If you’re still unsure and need advice, you can speak to a financial adviser. You’ll be charged for any advice. If you don’t have an adviser, you can find one at www.unbiased.co.uk  or  www.vouchedfor.co.uk. If you are 50 years or older, you can also get free guidance from Pension Wise, part of MoneyHelper, at www.pensionwise.gov.uk.

• Check what happens to your pension plan if you die. Make sure you've nominated your beneficiaries.
• Check that you have an up to date will. This can help give you comfort that your wealth will go to who you choose.