Taking your pension benefits from the Plan will provide you with a regular income for the rest of your life no matter how long you live. It provides a level of certainty, and for some people it forms the “core” of their retirement income.
You have options for how you take your money, depending on when you retire and the value of your pension benefits. We’ve explained these options below.
At any time from age 55 (or 50 if you have a protected pension age), you can choose between:
The Plan administrator, Mercer, will write to you with your retirement statement six months before your normal pension age. This will explain the options available to you and will include all the forms you need to complete to make your choice.
Alternatively, you can get an up-to-date retirement quote by contacting Mercer directly. You do not have to take any action off the back of that quote, but it may give you a good idea of what you have and what the different options might look like for you. You can also request a transfer value quote, if that is an option you would like to explore.
That really depends on your personal circumstances. For example, if a regular, guaranteed income and the stability that may provide is important to you, it could be a good option. Alternatively, if you would prefer to choose the level of income you need during your retirement to meet your needs in the short, medium and long term, a pension may not be quite the right approach.
We would recommend you speak to a financial adviser about what is right for you in the first instance as there is plenty to consider and some tax and planning implications you will need to know about in order to make an informed decision.