The best retirements don’t just happen, they’re carefully planned. Here’s the low-down on how to get the most out of your Fund pension and some things you might want to consider.
Some people begin to plan for their retirement years in advance. That’s great, but don’t worry if you only start a few months ahead of when you’d like to retire – let’s get you started…
Read the Pension Retirement Guide
Use this as your retirement planning template. The Guide outlines some of the things you’ll need to consider in the run-up to your retirement, including how the process works, when to tell the Pensions Team and your line manager, and what your retirement options are – including your options if you have Additional Voluntary (AVCs).
There’s also a useful section on how to access support and resources to make sure you make the right decisions for you.
Attend a pre-retirement seminar
Hosted by the Pensions Team, these seminars will walk you through how the retirement process works, provide you with an overview of the kind of timelines you should expect, and what your options for taking your benefits are. The seminars will also give you some helpful support on managing any changes to your life when you retire, including relationships and how you might use your time.’ Remember – the Pensions Team can’t give you guidance or advice about how to take your benefits. See Get advice below.
How much money will you need in retirement?
More of us than ever are saving into workplace pensions, but will the future you want at retirement be possible?
The Pensions and Lifetime Savings Association (PLSA) has suggested the income that’s needed (after tax) to achieve the three different levels for your standard of living. These standards show a range of common goods and services you would be able to afford at each level.
Read about the PLSA’s retirement living standards
Get a pensions forecast
Perhaps the most important part of your planning is working out how much money you’ll have at retirement. The Pensions Team provide you with an annual benefit statement and you can also request to be provided with an estimate of your Fund benefits. You can also request estimates from any other pensions you may have to provide you with a better idea of what your income will be in retirement.
You can email ukpensions@abbott.com or call the Pensions Officer on 01628 774613 to request an estimate.
State Pension
Don’t forget to include any State Pension you might be eligible for when calculating your retirement income. It’s payable from your State Pension age onwards.
Get a forecast of your State Pension
To understand more about how the State Pension works, visit MoneyHelper
Tax in retirement
When you retire, there’ll be a change to your routine, to your income and to the tax you pay. Find out more about tax and National Insurance, applies to different parts of your income, including your pensions at MoneyHelper.
Do you have enough?
If your projected income in retirement doesn’t match your projected outgoings, you can top up the benefits you’re due to receive from the Fund by making AVCs – or increasing them if you’re already making them. You could also consider retiring at a later date.
Download the AVC Application Form
Find any lost pensions
According to the Association of British Insurers, up to £20 billion in lost pensions is currently lying unclaimed. Could some of that belong to you?
Use the Government’s free pensions tracing service to reconnect with any pensions you might have forgotten about. All you’ll need is the name of your previous employer or pension provider.
Get advice
Although the Pensions Team can talk you through the choices you have about how to take your Fund benefits, they can’t give you advice about which option is right for you.
You can access guidance about your AVC options through the Government-backed service MoneyHelper, but this won’t be tailored to you and won’t cover your main scheme benefits.
We believe that cost shouldn’t be a barrier to making informed decisions about how to access your Fund pension, so Abbott has teamed up with Origen Financial Services (Origen) to bring you regulated independent financial advice at a significantly reduced cost. For eligible employees, Abbott will even pay the first £500 (including VAT) of the reduced cost!
You can also find an Independent Financial Adviser (IFA) through MoneyHelper. For a fee, IFAs will give you personalised advice that’s tailored to your situation about the best way to access your pension benefits.