Shape my future

Pension planning? Isn’t that something you can worry about later?

The fact is that tomorrow comes around sooner than you think, so by saving more now it could lead to you having a better chance of you enjoying the future you want.

So, where do you begin?

First, find out what you already have, and what you could have when you retire.

There’s the State Pension, of course…

For a single person, the current full new State Pension is £203.85 per week for the 2023/2024 tax year. You need to have made 35 years National Insurance contributions to get this. Wouldn’t want to live on that? Maybe not. So, what other money would you have to live on?

Think about any money you’re saving in a bank or building society account, or an ISA. Factor that in.

Next, if you have a workplace pension, check how much is being paid in each month.

The benefit of a workplace pension is that you will normally be eligible for tax relief from the government on your personal contributions. So, if you're a basic rate tax payer, every £100 which goes into your pension will cost you £80 from your take home pay.

You need to remember that your pension money is invested to try and help it grow – and, as with any investment, the value can go down as well as up and you may get back less than you put in.

If you want to join or make changes to your workplace pension just get in touch with your employer.

So in summary, find out what you’ve already got; plan how much you might need - and then take action.

Remember, if you really want to make a difference to your future, there’s no time like the present to act.

Next, think about what you’re going to need when you’ve finished working.

To help with retirement planning visit our website. You’ll find videos, calculators and online tools. Our Shape My Future tool can help you get an idea what your future could look like, and what you can do to make changes now.

Tax and state benefits shown are for the 2023/2024 tax year. They depend on your individual circumstances and may change. This presentation should not be regarded as giving any form of financial or investment advice. You should not make your decision on the basis of this recording alone. If you have any doubts whether the product is suitable for your needs, you should contact a financial adviser for advice.

When you get around to thinking about your finances, what sort of things spring to mind?

A mortgage or car loan? Looking after the family? Paying the bills? Probably not pensions, though.

But the fact is that tomorrow comes around sooner than most of us think…

So where do you begin?

First, find out what you already have, and what you could have when you retire. Your annual pension statement can help here.

There’s the State Pension, of course……

For a single person, the current full new State Pension is £203.85 per week for the 2023/2024 tax year. You need to have made 35 years National Insurance contributions to get this. Wouldn’t want to live on that? Maybe not. So, what other money would you have to live on?

Think about any money you’re saving in a bank or ISA. Factor that in.

Next, if you have a workplace pension, check how much is being paid in each month.

The benefit of a workplace pension is that you will normally be eligible for tax relief from the government on your personal contributions. So, if you're a basic rate tax payer, every £100 which goes into your pension will cost you £80 from your post-tax pay. This tax relief is limited to the amount you earn in the tax year, or the level of the Annual Allowance whichever is lower.

Next, think about what you’re going to need when you’ve finished working.

Think about whether you can afford to save some extra money from your salary. Putting aside just a little now could still make a big difference later.

You need to remember that your pension money is invested to try and help it grow – and, as with any investment, the value can go down as well as up and you may get back less than you put in.

That’s why it’s important to keep a close eye on the value of your pension and other investments.

If you want to join or make changes to your workplace pension just get in touch with your employer.

So in summary, find out what you’ve already got; plan how much you might need - and then take action

And remember, however busy you may be right now it’s worth taking time out to think about your future while there’s still time to make a difference to it.

To help with retirement planning visit our website. You'll find videos, calculators and online tools. Our Shape My Future tool can help you get an idea what your future could look like, and what you can do to make changes now.

Tax and state benefits shown are for the 2023/2024 tax year. They depend on your individual circumstances and may change. This presentation should not be regarded as giving any form of financial or investment advice. You should not make your decision on the basis of this recording alone. If you have any doubts whether the product is suitable for your needs, you should contact a financial adviser for advice. 

You’re getting closer to your selected retirement age which means more freedom to do the things you enjoy. To make the most of this new stage in your life you need to give some thought to your options, needs and goals.

So, where do you begin?

First, find out what you already have, and what you could have when you retire.

There’s the state pension, of course.

For a single person, the current full new State Pension is £203.85 per week for the 2023/2024 tax year. You’ll need to have made 35 years National Insurance contributions to get this much. Wouldn’t want to live on that? Maybe not, so what other money could you live off?

Think about any money you’re saving in a bank or building society account, or an ISA. Factor that in.

Chances are, your workplace pension pot will also play a big part in planning the kind of future you’d want for yourself.

There are a number of ways to take your money, such as: taking all the money as cash; taking it as guaranteed regular income or perhaps taking it as more flexible income as and when you need to.

Before you make any decision on how to take your money from your pension pot, you need to get a clear idea of how much you have in there, and how it’s invested.

If you want more help thinking about pensions and retirement, a good place to begin is MoneyHelper, the government-backed free guidance service.

If you are over 50 you can use the Pension Wise service, from MoneyHelper, online or by phone on: 0800 138 3944.

They offer a free face to face or telephone guidance session. They won't tell you what you should do, but they'll provide you with information to help you understand your options.

For more tailored advice, you should speak to a financial adviser. Bear in mind they may charge a fee for this advice. If you don’t have an adviser you can find an up-to-date list of regulated advisers at MoneyHelper. https://www.moneyhelper.org.uk/en/getting-help-and-advice/financial-advisers/choosing-a-financial-adviser

You can access MoneyHelper online at www.moneyhelper.org.uk or by phone on 0800 011 3797.

Tax and state benefits shown are for the 2023/2024 tax year. They depend on your individual circumstances and may change. This presentation should not be regarded as giving any form of financial or investment advice. You should not base your decision on the basis of this recording alone. If you have any doubts whether the product is suitable for your needs, you should contact a financial adviser for advice. An adviser may charge for their services. The value of your pension can go down as well as up and you could get back less than the amount put in. 

Nowadays,...

...when going to the cinema,...

...do you notice how many different choices there are to make before we can even view the film?

Do we want Premier Seating? Do we want the popcorn and drink deal? Do we want to go extra large?

There’s a lot to think about and the same can be said when considering how we can take money from our pension savings.

When you reach age 55, or 57 from 6th April 2028...

...you are free to take the money you have saved from your defined contribution pension. There are 3 main ways to access your money:

Option 1:

If you prefer the security of a guaranteed income for life,...

...you can use your savings to buy an insurance policy, known as an annuity.

This income may be smaller than with the other options...

...but you won’t have to worry about running out of money in the future. Just be aware that once you’ve bought an annuity you can’t change your mind.

Option 2:

You can take money from your pension as and when you want it and the money you leave in your pot stays invested...

...- as it was when you were paying into your pension. Charges will still be taken but leaving it invested may give it more chance to grow.

There is a risk that the value of your investments could go down and you may not get back what has been put in. Remember, there is no guarantee that the money will last a lifetime with this option.

Option 3:

You can take all of your money out as cash,...

...but as tempting as that is, you’ll need to think carefully about any tax implications....

...and how long your savings will last, as taking large sums of cash...

...could push you into a higher income tax bracket...

...and you could run out of money in the future if you don’t budget carefully.

It's important to be mindful of scams if reinvesting.

It is possible to mix the different options too if you want to.

Before you do anything, you can take 25% from your savings tax-free,...

...so you could pay off any debts,...

...travel,...

... or just treat yourself to the small things in life.

Tax benefits are subject to change and individual circumstances.

The remaining 75% of the savings you will take will be treated like your salary and taxed as income.

You don’t have to do anything with your savings either. You can leave your pension exactly where it is.

Whatever choice you make, it’s worth reviewing the options carefully and getting advice. You should also shop around and compare the different levels of income you could get from different providers.

Here at Aviva, we have dedicated staff available to talk you through your options,...

...so whatever route you choose, we can help you set the scene for the retirement you want.

If you want more help thinking about pensions and retirement, a good place to begin is MoneyHelper, the government-backed free guidance service. 

If you are over 50 you can use the Pension Wise service, from MoneyHelper, online or by the phone on : 0800 138 3944. 

They offer a free face to face or telephone guidance session. They won't tell you what you should do, but they'll provide you with information to help you understand your options. 

For more tailored advice, you should speak to a financial adviser. Bear in mind they may charge a fee for this advice