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Making the right decision

Things to think about when deciding how and when to take your Fund pension.

How to make a decision that's right for you

Deciding when to retire and how to take your pension can seem overwhelming. It may help to take stock of your pension and break things down using the steps below.

Think about what your costs will be when you retire

Think about how much you might need to spend, in order to have the retirement you want.

Use the Retirement Budgeting Calculator in your myFund account to get a personalised prediction.

Visit the how much I’ll need for retirement page to find out more.

Consider how you will pay for your costs when you stop work

You may have several sources of income when you retire.

Find out what each of them are likely to be worth and add them together to see how much income you might have in total.

Some of your money may come from:

  • your Fund pension – check your Annual Benefit Statement or request an estimate to find out how much your pension might be worth when you retire. Log in to your myFund account to find out more. 
  • your State Pension – the amount you receive is set by the government. You can request an estimate at gov.uk You can also read more on the State Pension page.
  • other pensions – you may have a private pension or pensions linked to previous employment. You’ll need to speak to each of the providers individually for estimates on those accounts. If you’ve lost their contact details, the Pensions Tracing Service may be able to help. It’s a free, government-backed, service available online and over the phone on 0800 731 0193. Other companies offer a similar service but many charge a fee. Visit the government website to find out more.
  • savings and investments – if you have savings outside your pension, get those statements from your bank or other provider
See if you’re on track and understand the options available to you

Check if you’re on track to fund your future by comparing your income target from the Retirement Budgeting Calculator with the amount you expect to have coming in from your Fund pension and other income sources as detailed above.

These figures may change depending on how and when you decide to take your pension, so it’s important you understand the options available to you and what impact they might have on how much you get.

Visit the ways to take my pension page for more information about these options.

Look at what you can do if the numbers don’t add up

If you’re worried that the income you will have when you stop work won’t cover your expected costs, there are a number of things you can do before you stop work. This includes:

  • Topping up your pension – think about paying more into your pension if you can. This is known as making Additional Voluntary Contributions (AVCs). It’s tax-free up to certain limits. Find out more about AVCs in the saving more with BRASS and AVC Extra area of the website.
  • Thinking about changing your retirement age – you can delay taking your pension. This would give you more time to build up your benefits. This is an important decision and we suggest you speak with a Financial Adviser first. Check the when to retire page for details on retiring at different times.
  • Clearing your debts – if possible, pay off any debts you owe before you retire. You can use the MoneyFit tool in your myFund account for ideas on how to improve the way you manage money. This includes a personal action plan with helpful tips and advice to possibly free up more money to save in your pension. Log in to try MoneyFit now.
Take advice before taking action

You may want to get expert help before making any changes or taking your pension. 

Visit the guidance and advice page for details on who to speak to for support. 

If you’re ready to start taking your pension visit the applying for my pension page. It will tell you what to do next.