Shape my future

We all want a good retirement. But why not aim for a great one?

We know you’re concerned about what coronavirus means for you – find out how it could impact you.

Log in now to take a look at your pension

MyAviva           Friends Life -  Membersite           Friends Life - My Money

If you're unsure which pension portal applies to you, please contact your employer.  If you have an individual personal pension with us, please select MyAviva.

What will your future look like?

Ever wondered what life might be like when you retire? Use our Shape my Future tool to find out.

Start shape my Future

Your retirement timeline

Whether your retirement's a long way off or just around the corner, having a clear idea of how to achieve your aims is important.  The timeline below relates to those invested in a defined contribution pension, who are building up a pension pot with their own contributions and possibly their employer's contributions as well.

See what you can do now and in the future to reach the retirement you want.

40 years

About 40 years to go

If you're in your twenties, retirement might seem like it's a lifetime away. But, remember when Prince William got married.  Doesn't seem long ago, does it?

That was 2011.

This certainly makes you think how quickly the years go by – and although retirement may not be at the forefront of your mind right now, it might arrive more quickly than you think.

Taking some action now could make that retirement a lot more enjoyable when it does come along.

What to do now

  • Begin by thinking about the kind of retirement you'd want for yourself:
    • Where would you like to live?
    • Do you think you'll want to travel?
    • What sort of activities and hobbies do you think you'll enjoy?
    • Will you be financially supporting anyone else?
  • Start to consider how you'll fund your retirement
  • Make a retirement plan
    • Set yourself some goals – think about what age you want to retire, how much income you want, whether you'll do any part-time work.
    • Think about how much you might need to save.
    • Also consider how much you can afford to save now.
    • Remember, even if you think you can't afford to save much, as little as £50 or £100 per month will help build your retirement fund. Please note, the value of your pension can go down as well as up You may get back less than invested.
    • Return to your plan regularly to check on your progress.

We recommend that you seek appropriate guidance or advice to understand your options at retirement. An adviser may charge for their services. You can visit www.unbiased.co.uk to find an adviser in your area.

20 years

About 20 years to go

If you're aged 35 to 45, you're likely to have plenty to think about already. Your career, your home, your family... busy times.

You've probably also thought about the need to provide for your retirement. You may have a pension, perhaps arranged through your work.

At the moment, retirement planning is more likely to be at the back of your mind than the front. But this is the stage in life when many people could benefit from taking a brief ‘time out' to make sure their retirement plans are on track.

What to do now

  • Contact your existing pension provider(s) to find out what your pension fund(s) are worth.
  • Understand whether you're on schedule to achieve the kind of income you're looking for when you retire.
  • Review your retirement plan and see if you need to change anything.
    • Consider if you are contributing the right amount into your pension
    • If you have more than one pension, would it make sense to combine them?
  • It's worth spending some time to consider what you can do, find out about what you need to think about and whether it is the right action for you to take. If you are not sure, you can speak to a financial adviser. They may make a charge for their services, but it could be money well spent.
  • Look at all your financial arrangements together.
    • Your pension is just one of the ways in which you can provide for your retirement. To get the full picture, think about things such as the value of your property and any savings accounts you may have.

We recommend that you seek appropriate guidance or advice to understand your options at retirement. An adviser may charge for their services. You can visit www.unbiased.co.uk to find an adviser in your area.

10 years

About 10 years to go

Even if you've kept a careful eye on your retirement planning, this is the time when it pays to do some serious thinking about the decisions you'll need to make.

What to do now

  • Contact your existing pension provider(s) to find out what your pension fund(s) are worth.
  • Take a long, hard look at your plans and check that they're on track.
    • Find details of any pensions you may have lost.
    • Make sure you know your options when it comes to taking the benefits from your pension, and how this will affect your tax position.
  • Find out what you'll be entitled to receive and when from the state

Although many people wouldn't want to manage on the State Pension alone, you need to know how much you'll be eligible to receive.

We recommend that you seek appropriate guidance or advice to understand your options at retirement. An adviser may charge for their services. You can visit www.unbiased.co.uk to find an adviser in your area.

5 years

About 5 years to go

Even with just five years to go before you're due to retire, it's not too late to make important changes which could help you enjoy a better retirement. This is a good time to start thinking seriously about how long your money may need to last you – many people underestimate how long they may be retired.

What to do now

  • Contact your existing pension provider(s) to find out what your pension fund(s) are worth.
  • Think about how much you'll need to live on when you're retired
    • You might find you don't have as many regular expenses when you retire – but it's important you know how much you're likely to be spending, so you can work out how much income you'll need.
  • Review your plans and consider if you'll have enough income
    • If you're not sure you'll have sufficient income, you could consider options, such as delaying your retirement or consider whether you could manage on less income.
    • Find details of any pensions you may have lost.
    • Make sure you know your options when it comes to taking the benefits from your pension, and how this will affect your tax position.
  • Your savings and investments are important as well as your pension
    • Making the most of your ISA allowance could help you to save and invest more tax-efficiently. Tax treatment depends on individual circumstances and may be subject to change in the future.
  • Find out what you'll be entitled to receive and when from the state
    • Make sure you know how much you'll get from the State Pension and any other benefits you might be able to claim.
  • Think carefully about how long your money may need to last
    • No-one can tell exactly how long they'll live – and most of us probably wouldn't want to! But it's important not to run out of money if you live to be a grand old age.
  • Consider how to provide for your loved ones
    • No-one likes to think about dying, but you can enjoy greater peace of mind if you know your loved ones will be provided for by making a will.

Pension Wise

This government service offers free and impartial guidance on your retirement options, either over the phone or face to face.

Visit Pension Wise

pension wise

We recommend that you seek appropriate guidance or advice to understand your options at retirement. An adviser may charge for their services.  You can visit www.unbiased.co.uk to find an adviser in your area.

Less than 1 year

Less than a year to go

Now’s the time to collect your thoughts about decisions of how you will take your benefits from your pension. There's a lot to think about:

What to do now

  • Make sure you can afford to retire on the date you've chosen
    • If you review your finances and feel you need to defer your retirement, make sure you tell your pension provider.
    • Find details of any pensions you may have lost.
  • Decide how much you’ll need to live on
    • You’ll need to have a clear idea of your regular outgoings, as well as thinking about paying for unexpected expenses and life’s little luxuries.
  • Find out about your retirement options

      From the age of 55, you have four main choices over how to access the money you've saved:

    • One - withdraw all your pension money
    • Two - take money whenever you need to
    • Three - use it to buy yourself an income for life
    • Or four simply leave the money where it is. You can make your choices later.
  • Read the information your pension provider sends you
    • You’ll receive statements showing how much your pension is worth, together with your options for taking cash from your fund and/or using it to buy an income.  This will normally be sent to you six months before your retirement date, with a further reminder of your options two months before you're due to retire.
  • Check how much you’ll get from the state
    • Your retirement date may not, of course, be at the age when you become eligible for the State Pension. But you should make sure you know how much you’ll get from this and any other benefits you might be able to claim.
  • Consider how to provide for your loved ones
    • No-one likes to think about dying, but you can enjoy greater peace of mind if you know your loved ones will be provided for by making a will.
    • If you're buying an income from your pension fund, you need to consider whether you want anything to be paid to your dependants when you're gone.

Pension Wise

This government service offers free and impartial guidance on your retirement options, either over the phone or face to face.

Visit Pension Wise

pension wise

We recommend that you seek appropriate guidance or advice to understand your options at retirement. An adviser may charge for their services.  You can visit www.unbiased.co.uk to find an adviser in your area.

Pension planning

Pension Planning: The Early Years

Please enable your browser JavaScript to view the video

Transcript

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 State Pension for the 2020/21 tax year is £175.20 per week. 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.

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.

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.

Tax and state benefits shown are for the 2020/21 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.

Pensions Planning: Building My Savings for the Future

Please enable your browser JavaScript to view the video

Transcript

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 State Pension for the 2020/21 tax year is £175.20 per week. 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.

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.

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.

Tax and state benefits shown are for the 2020/21 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. 

Pension Planning: Almost Done Saving

Please enable your browser JavaScript to view the video

Transcript

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 state pension for the 2020/21 tax year is £175.20 per week. You’ll need to have made 35 years National Insurance contributions to get this. Could you manage on that?

Think about any money you’re savings 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.

On reaching 55, you also have the option to take money from your pension pot.

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

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

You’ll find lots of information on retirement planning on our website. It’s brought to life with videos, calculators and online tools to help you see where you are now and plan where you want to be when you retire. If you’d like to learn more about your choices at retirement view our Pensions Freedom video.

If you are over 50, you can get free and impartial guidance on your retirement options on the government’s Pension Wise website at pensionwise.gov.uk or by calling 0800 138 3944.

Before you make any decision, it makes sense to talk to an adviser. Advisers can be found at www.unbiased.com. They normally charge for their services. Or, you can speak to us here at Aviva by giving our Financial Advice Support team a call on 0800 092 3107.

Take a look now – your future self will thank you for it!

Tax and state benefits shown are for the 2020/21 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. 

Pension options

What Are My Pensions Freedom Options?

Please enable your browser JavaScript to view the video

Transcript

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,...

...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. 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 the tax man...

...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 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.

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.

It's important to be mindful of scams if reinvesting.  Tax benefits are subject to change and individual circumstances.

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.

Pension Wise is a free and impartial service set up by the government for people over 50 with defined contribution pensions.  It will help you understand what your choices are and how they work.

You can receive Pension Wise guidance online, over the phone on 0800 138 3944 or face to face.  Visit www.pensionwise.gov.uk for details.

We recommend you seek appropriate guidance or advice to understand your options at retirement.

Transcript