What is Guided Retirement?
It’s a retirement solution that works by dividing your members’ money into three pots. Designed to meet different income needs, each pot has its own investment approach.
We want to give your members the information and tools they need to understand using their pension as an income. With the Guided Retirement framework, they can confidently look to the future and feel supported throughout their retirement.
The value of a pension can go down a well as up, so members could get back less than paid in.
Transcript for video Guided Retirement - How can I make my pension pot last?
How can I make my pension pot last throughout retirement?
Aviva’s 2024 Working Lives Report found that this was a question 60% of employees are asking.
And 75% say they want more support from their employer on planning for a comfortable retirement.
And what members choose at the start of retirement might not be right further down the line.
Aviva heard this loud and clear – and that’s why we developed Guided Retirement.
It’s a new solution to help members make the most of their pension savings... and feel that they’re not alone when making decisions…not just at the time they retire, but all through the changing phases of retirement itself.
Guided Retirement does this by dividing their pension money into three pots.
The Flexible Income Pot provides a regular income that the member can tailor to suit their new lifestyle. They may be making the most of their new-found freedom, spending more on travel and hobbies or adjusting to part-time work.
At this stage, they may not be sure how much they’ll need to spend, so income flexibility really matters.
The Guaranteed Income Pot provides the security of a guaranteed income in the later years, though buying an annuity.
It aims to grow its value while the member is taking an income from the Flexible Income Pot.
Members can also choose to have an Occasional Spending Pot, so they’ve got a bit extra for one off expenses throughout both phases of retirement.
But how much to put in each pot? When to switch between them? And how to help make sure the money will last?
Our Guided Retirement Modeller helps members so they aren’t on their own with decisions like these.
That’s the Guided part of Guided Retirement.
Members can create a forecast online, so they can test how splitting different amounts between the three pots could affect their future income.
Support to learn more about retirement options is only ever a step away.
They can model the pot splits any number of times until they reach one that suits their needs. And they can go back and use the Modeller throughout their retirement to try out different splits and amounts.
Then, when they’re happy, they tell us, and we’ll allocate the money to the relevant pots.
Like other investments, the value can go down as well as up, and the amount they’ll get back can’t be guaranteed.
We will continue to support members through their retirement journey.
That’s how Guided Retirement helps members plan for, and then enjoy, their retirement with more confidence about the future.
Explore our website to see how Guided Retirement could work for your members.
Support for your members at retirement, and in retirement.
It takes Aviva.
How the pots work
Before splitting their pension money between the pots, members have the option to take up to 25% as a tax-free lump sum. Tax-free benefits are dependent on individual circumstances and can change at any time.
The flexible income pot
Whatever their retirement plans might be, members can make flexible regular withdrawals as and when they need to, for things like home improvements, travelling or working part time. We’ll provide them with the tools they need to help future proof their retirement income.
The guaranteed income pot
Your members can buy an annuity with the money they invest in this pot. They’ll decide which age they want to take this from when they start Guided Retirement, but this can be changed at any time.
The occasional spending pot
We know not everything can be planned for. This optional pot could help with any unexpected costs, from broken boilers, increased bills or even a last-minute trip away.
We’re here to help
With Guided Retirement, your members don't have to go it alone. We support them along the way with clear, straightforward information and online tools to help them decide what to do. They’ll have access to our modelling tool, where members can see the impact of making changes before they commit to them. They can model the effect of changing the amounts allocated to each of the three pots.
An award winning provider
Winner, Best Group Pension Provider
The framework for Guided Retirement took centre stage in Aviva’s successful entry for this major award. Corporate Adviser recognised our commitment to developing innovative, member-focused solutions.
Pensions Age at Retirement Solutions Provider of the Year
For the award submission based on Guided Retirement we were commended for our leadership in the at-retirement space, demonstrating a clear passion for innovation, excellence and member support.
Retirement has changed, so we’re changing with it
We know that scheme members are worried about making the right choices when it comes to making their pension pots last for a comfortable retirement. In our 2024 Working Lives report, three-quarters of members said they want more support and guidance from their employer and our Guided Retirement solution can help give them the tools they need to do this successfully.
Evolving pensions
Longer careers
Benefitting your business and your members
Motivation: boosted
In the survey for our Working Lives report, we found that around one third (35%) of members don’t feel their pension will provide enough for a comfortable retirement Footnote [3]. Having confidence in their financial future and feeling happy with the benefits they’ll get could boost motivation in your workforce.
Retirement planning: supported
Our Working Lives report identified 85% of employers feel responsible for making sure their employees have enough savings for a comfortable retirement Footnote [3]. Guided Retirement offers members a flexible retirement income plan, helping them get the most from their pension.
Rewards package: enhanced
Giving your members a comprehensive workplace pension scheme adds to the benefits package you offer. As an employer, you could even see better recruitment and retention across your workforce.
Let your members explore
Visit our member page
Visit our member page Our dedicated page where your members can find everything they need to know about Guided Retirement.
Manage their pension online
Use our tools designed to help members plan and forecast their retirement on MyAviva.
Learn about workplace pensions
From auto-enrolment rules to comparing details of different scheme types. This is where you’ll find the information you might need about providing pensions for your employees.
Workplace pensions explained
Types of workplace pension – what are they and how do they work?
Discover the different types of workplace pension, how they work, and which one is best for your business.
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Employers
How to choose a workplace pension provider
Find out how to choose a workplace pension provider that aligns seamlessly with your business.
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Auto-enrolment
Company pension contributions
Find out more about the company pension contributions you need to make as an employer.
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Workplace pensions explained
Contract and trust-based pensions – what’s the difference?
Find out the difference between contract and trust-based pensions and the benefits they offer to employers.
