Why do I need to review my pensions?
It might be just a few months or several years away, but there are things you should look at now to make sure you have enough to maintain the lifestyle you'd like in retirement.
Other than the State Pension, if you don't have an existing private or workplace pension it's not too late to start saving. To find out more visit Saving for your future.
What pensions do you have?
A good starting point is to look at the different types of pensions you may already have and what these will provide.
There are two main types of pensions – defined contribution and defined benefit.
- A defined contribution pension could be private (set up by yourself) or provided by your employer. This pension is made up of contributions from you, your employer (if applicable) and tax relief from the Government. This can then be used to fund your retirement plans and provides flexibility on how you use the money.
- A defined benefit pension (also known as a final salary) would only be provided by your employer. It usually provides a guaranteed income based on how long you’ve worked for your employer and how much you’ve earned. Although this type of pension provides greater certainty, it offers less flexibility around how you take your money and when.
How much might you get and at what age?
A good starting point is to understand what your pension might give you. Your pension provider, employer, or whoever administers your pension scheme, can provide you with an up-to-date statement to show what your pension could provide you with at your previously selected retirement age.
Use our pension options calculator to see what you could do with your pension pot.
If you plan to retire early, you should find out how this will reduce your pension and if you would lose any additional benefits your pension may have.
The State Pension
You may be entitled to receive a State Pension, provided by the Government, from your State Pension age.
The State Pension age has been increasing. You can check what age you'll get your State Pension, and how much you could get at the Government's website.
How can you find out how much your pension is worth?
Knowing what your pension is worth is useful when planning for retirement. In this video, we explain how you can access this information.