Are you pension prepped?
Here’s a short guide on what to expect, what to think about and what to do when it comes to taking your savings.
Here’s a short guide on what to expect, what to think about and what to do when it comes to taking your savings.
It’s time to take your pension – but how does it all work? Here’s a short guide on what to expect, what to think about and what to do when it comes to taking your savings.
Starting the process
Six months before your chosen retirement age, we’ll send you a retirement pack outlining the options available to you for taking your pension. This will start the process. If you’re not ready to take your pension at that time, that’s fine. Just let us know and we’ll keep your money invested until you’re ready.
Your payments will take a few weeks to process
Once you’ve told us how you’d like to take your pension, it can take six to eight weeks to get your savings to you. With this in mind, it’s a good idea to start thinking about your future income before your planned retirement date, and avoid making any financial commitments that are reliant having your pension.
Income tax
You might have to pay income tax on some of your pension. It’s something to bear in mind when you’re reviewing how and when to take it.
When to take your pension
Normal retirement age is usually 60 or 65, but you can start to take your TPT pension savings from age 55. Some people choose to delay taking their savings so they can carry on working and saving. What you choose to do depends on your personal circumstances.
How to take your pension
When you retire, you might need to think about your income in a totally different way, especially when your usual regular income stops. One of the great things about your TPT pension is that it’s flexible, and you can take it in one or more of the following ways to suit your new retirement lifestyle:
Sign a Pension Wise declaration form
Before we can release your pension savings, the government requires you to complete a declaration form to confirm you’ve either had an appointment with Pension Wise or opted out of one. Pension Wise is a MoneyHelper service that’s backed by the government. We’ll send you the declaration form in your retirement pack. Without it, we won’t be able to process your request.
Consider getting financial guidance
Your money needs to see you through the whole of your retirement, so it might be worth seeking guidance or advice when you’re choosing how to take your savings. There are plenty of free resources to help you make informed decisions, like MoneyHelper and Gov.uk.
We’ve also partnered with Mercer, a leading provider of retirement guidance, to provide you with information about your pension options. As part of the service, you can speak to one of their Retirement Relationship Managers who will:
You can call the Mercer Retirement Relationship Manager team on 0800 280 2448.
Consider getting financial advice
If you’d prefer more tailored advice around how to use your pension as a retirement income, you might benefit from financial advice. The difference between financial guidance and financial advice is that you pay for financial advice, and it provides you with a personalised recommendation on how to achieve your financial goals. Financial advisers are also regulated, which means they’re authorised by the Financial Conduct Authority and have more protection should anything go wrong.
To find out more about getting guidance and financial advice, click here to view our resources.
We’re here to support you on your pension journey too. If you have any questions about your TPT Defined Contribution pension, you can reach us on 0345 072 6780 or use our Contact TPT service.