Taking Your Pension
Planning for retirement can feel overwhelming but we’re here to guide you every step of the way. Our animated video explains the key stages of taking your pension.
Whether you’re thinking about retiring soon or just starting to explore your options, this easy-to-follow guide helps you understand what happens and when.
If you have questions or want personal help from your dedicated administrator, our team is ready to support you.
About
What Happens at Retirement?
A pension is typically paid as an income for life, often with some limited inflation protection. Many pension schemes also offer additional benefits, such as the option to take a lower pension with a tax-free lump sum, and a spouse’s pension if the pensioner dies.
Video
Thinking of taking you pension?
Here’s what you need to know.
There are two main types of occupational pension schemes - here is a quick summary of the key features:
1. Defined Contribution (DC) Pension
You build up a pension pot through contributions and investment returns
Your retirement income depends on how much you save and how well investments perform
At retirement, you can often:
Take a lump sum (usually 25% tax-free).
Buy an annuity (a guaranteed income for life).
Use income drawdown (not all schemes allow this - a transfer may be needed).
2. Defined Benefit (DB) Pension
Based on your salary and years of service
Pays a guaranteed income for life
Often inflation-protected and may include benefits for a spouse or dependent
things to know
When do you want to take your pension?
The minimum pension age in the UK currently is age 55, rising to 57 from April 2028
Taking your pension early usually means a lower income, as payments are made over a longer period
Delaying retirement can increase your pension
Most schemes have a ‘normal’ (target) retirement age of 65 but may allow retirement up to a certain age (typically age 70 or 75)
Some schemes require trustee consent for early or late retirement
Thinking about retiring? Either contact your pensions administrator or use our contact form to explore your options and request an illustration.
I have had a quotation - what next?
Your illustration should explain everything you need to know
If you have any questions, feel free to email or phone the administration team using the contact details on your illustration
If you request an early retirement illustration and decide now is not the time to take your pension, you don’t need to do anything - we’ll be in touch when you approach your ‘normal’ retirement age
Ready to proceed? Return the completed forms with your chosen option, bank details, and proof of identity.
How long does it take to get an illustration and how long after sending in my forms will I be paid?
Illustrations: usually provided within 5 working days - we’ll let you know if this is not going to be the case
Payments: once we receive your completed forms, we’ll return any original documentation immediately and confirm next steps including arrangements for your pension and any lump sum within 5 working days
Pensions are usually paid on a monthly basis typically towards the end of the month
Lump sums are paid as soon as possible on or around the retirement date
What about tax?
Where can I find more information?
Here are some free, impartial resources to help you understand your pension options:
Money and Pensions Service (MAPS)
Free and impartial guidance to people with workplace and personal pensions
Provides information on pensions regulations and helps resolve disputes
MoneyHelper
Provides free and impartial money and pension guidance backed by the government
Tools and calculators to help you understand your pension options and retirement planning
Pension Wise
Free and impartial government service that helps individuals aged 50 and over understand their pension options
Offers appointments and guidance on how to access pension savings.
Frequently Asked Questions
FAQs
If you have any other questions not answered below, please don't hesitate to contact us.
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