7th May 2015 at 2:37pm
New pension rules mean there’s much more flexibility and choice over how you can take your pension money when you reach your mid to late 50s.
If you’re in your 40s or 50s, it’s time to sit up and take notice. These are the decades when you should be keeping a close eye on how much your pension savings are worth, and how they’re invested, to make sure you’re on track for the retirement you want.
Bring your pensions together
If you’ve changed jobs over the years, you may have more than one pension. It’s worth considering bringing them together – this is known as consolidating. You’ll have everything in one place, making it easy to keep an eye on them, as well as easier to manage how you take money out when the time comes.
Bringing your pensions together may not be right for everyone though, so make sure you won’t be penalised or lose out on any valuable benefits.
Check your Beneficiary Nomination is up-to-date
Your Beneficiary Nomination is where you name the person, or people, you want to inherit your pension after you’re gone. This is separate from your Will as it’s your pension company that deals with passing on your pension money after you die.
It’s really important to keep your form up-to-date in case you get divorced or your circumstances change.
No need to cash-in at 55
There’s no rule forcing you to take money from your pension at age 55 so don’t feel pressured. It’s perfectly normal to wait until you’re in your 60s before you start taking money out. The longer your money stays invested, the longer it has the potential to grow.
Do take the time to learn about your choices and consider the consequences carefully. Online tools and calculators let you try out different scenarios and can help you understand your options before you commit. Some let you see what kind of income your pensions might generate for you. You can find out using our Pension calculator.
The information in this blog or any response to comments should not be regarded as financial advice. A personal pension is an investment. Its value can go up or down and may be worth less than you paid in. Laws and tax rules may change in the future. The information here is based on our understanding in May 2015.