Preparing for retirement: Your six-step pension checklist

Most pensions nowadays are defined contribution schemes, where your money is invested and the amount you get when you retire will depend on how much you paid in and how your investments have performed.

If you’ve got a defined contribution or money purchase pension, there are lots of different options available when it comes to taking an income from your pension, including drawdown and annuities. You can find out more about drawdown in our article What is pension drawdown and how does it work? and more about annuities in our guide Annuities explained.

The Government’s Pension Wise service, run by the Pensions Advisory Service and Citizens Advice, provides people aged 50 and above with free guidance on their pension choices at retirement. You can give them a call on 0800 138 3944 to book a free appointment, or you can book one via their website.

It’s always worth taking advantage of a free appointment with Pension Wise, however if you want advice that’s tailored to you specifically, you’ll also need to speak to a financial advisor, as Pension Wise can only provide general guidance and not individual recommendations. In this case, our guide on How to find the right financial advisor for you might be helpful.

Alternatively, if you think you might be interested in speaking with a pensions expert, Rest Less Financial Services is now offering our members a free Pension Health Check with a Rest Less Pensions Expert.

If you’re lucky enough to have a defined benefit or final salary scheme, you’ll get a guaranteed income at retirement which can make it much easier to plan your budgets for retirement. Check with your scheme’s administrator if you’re not sure when this income will start being paid. Find out more in our article Your options at retirement and learn about the differences between defined contribution and defined benefit schemes in our guides What is a defined contribution pension? and What is a defined benefit pension? 

Do you feel financially prepared for retirement, or are you worried about how you’ll get by when you stop work? We’d be interested to hear from you. You can join the money conversation on the Rest Less community or leave a comment below. 

Author: wpadmin

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