Almost done saving
Less than five years to retirement
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.
Transcript for video video
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.
This is the current weekly state pension for a single person. You need to have 35 years National Insurance Contributions to get this much, which is the full amount. Wouldn’t want to live on that? Maybe not.
So, what other money could 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.
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 a guaranteed regular income, or perhaps taking it as a more flexible income as and when you need to.
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 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/pensionsand-retirement/taking-your-pension/find-a-retirement-adviser
You can access MoneyHelper online at http://www.moneyhelper.org.uk or by phone on 0800 011 3797.
Tax and state benefits shown are for the 2024-2025 tax year. They depend on your individual circumstances and may change in the future. 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 paid in.
What can you do now?
1. 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.
- 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.
3. 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 in a more tax efficient way. Tax treatment depends on individual circumstances and may be subject to change in the future.
4. Find out what you'll be entitled to receive and when from the government
- Make sure you know how much you'll get from the State Pension and any other benefits you might be able to claim.
5. 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.
6. 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.
- Whether you’re planning on using your pension fund for income drawdown or buying a guaranteed income for life, you need to consider whether you want anything to be paid to your dependants when you're gone.
What happens when I reach my chosen retirement age?
Once you've paid money into your pension savings, your money can normally only be accessed and used to provide pension benefits from the minimum pension age. This is currently age 55. From 6 April 2028 this will be age 57 unless you have a protected pension age. To find out more visit www.aviva.co.uk/nmpa.
It is important to remember that there are two separate stages to a pension scheme. The first is the pot of money you build up in your pension scheme from the payments you invest. The second is the retirement benefits you access yourself from the pension pot you have built up.
You can use your pension pot to provide retirement benefits. There are different options available, and you should take financial advice or guidance before choosing your option(s).
As you approach your chosen retirement date, or when you tell us you wish to take your benefits, we will inform you of your options and the pros and cons of each. The options are set out below. You can choose more than one option.
Tax benefits are subject to change and individual circumstances.
Annuity
Lump sum
Transfer
Income Drawdown (also known as Flexi-Access Drawdown)
Contact us
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Contact your employer
- You can contact Nationwide’s Pension Services team (part of People Services).
- You’ll need to create a Service Request on PeopleCloud Help Desk and select ‘Pensions’ as the category.
Guidance and Advice
This site does not provide financial advice.