Get ready for retirement

Recent changes to pensions give you much more flexibility when planning your retirement.

It’s up to you to decide how to manage your money to create the income you need for the retirement you want. But we have provided some further information to help you consider your options and guide you through what happens to your pension as you get closer to your selected retirement date.

Your retirement countdown

Before you retire we will get in touch to explain what happens when you get close to your selected retirement date. This is the date we use to calculate how much money we think you’ll have when you retire. 

Six months before retirement

If you’ve just received a letter from us – congratulations! You’re only six months away from your Selected Retirement Date. This means you need to think about what you want to do with your pension savings. We suggest you:

  • Read the letter and ‘Your Pension – it’s time to choose’ brochure carefully. The letter will tell you how much your pension savings are worth.
  • Book a Pension Wise guidance session. Pension Wise is a government service that will offer people approaching retirement free, impartial guidance about their choices.
  • Take a look through your choices at retirement.
  • Check your selected retirement date and tell us if you want to defer your pension.
  • If you have other pensions, gather all your paperwork and pension statements together.
  • Get an up to date State Pension statement.
  • Call us on 0345 055 0606 to discuss your options or speak to your financial adviser.

Ten weeks before retirement

If you haven’t already decided what to do with your pension savings, you’ll receive another reminder from us soon. It’s now time to choose:

  • How you want to take your pension
  • If you want to transfer your pension to another provider
  • If you want to take an income drawdown product with us
  • Call us on 0345 055 0606 to discuss your options or speak to your financial adviser.

Three weeks before retirement

Your final reminder letter will arrive about three weeks before you retire.

  • Call us on 0345 055 0606 to discuss your options or speak to your financial adviser.
  • If we don’t hear from you we will:
    • Automatically defer your selected retirement date by two years
    • Get in touch six months before your new selected retirement date
  • Contact us anytime when you have decided how you want to take your retirement savings.

How we can help

Our drawdown plans offer you straightforward and flexible choices when providing for your retirement.

  • Income Drawdown Plan
    • Take up to 25% of your pension fund as tax-free cash
    • Choose what taxable income you need
    • Your pension fund remains invested
    • A medium to long-term investment
    • Choose where to invest from a range of portfolios
    • Pass on your remaining savings when you die
  • Cash Fund Drawdown
    • Designed for those who want to deplete their pension fund over a short time
    • Take up to 25% of your pension fund as tax-free cash
    • Choose what taxable cash withdrawals you need
    • Invests in the LF Cash Fund
    • Pass on your remaining savings when you die
  • Personal Pension Plan
    • Tax relief can boost your pension savings
    • Make as many regular or ad-hoc payments as you like
    • Invest in a range of funds or choose a Lifestyle profile
    • Increase, decrease, stop and start your payments to suit your circumstances
    • Flexible ways to take your savings at retirement
  • Stakeholder Pension Scheme
    • Closed to new business
    • Receive tax relief on your pension savings
    • Simple and straightforward investment choices
    • Annual Management Charge not exceeding 1%
    • Flexible ways to pay to suit your circumstances
    • Your employer can make contributions too

Got a query about your Plan?

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Tax information

Put simply, you don’t pay tax when saving into your pension, but you do when taking your pension.

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Contact us

If you have a query about your pension or income drawdown plan with us, we can help. Visit our contact centre and we’ll help you find the right number to call.

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