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Frequently asked questions
Before starting a retirement plan it's a good idea to think about how much income you're likely to need when you retire. Think about the lifestyle you would like to have when you retire - holidays, hobbies, time with family and friends.
Your financial adviser will be able to work out a realistic figure for you and help you plan how you are going to achieve that level of retirement income.
You may be able to supplement your retirement income with other sources of income, such as interest from other savings and investments, share dividends, rental income from property or part-time work.
Generally as soon as you can afford to.
Although saving for retirement might not be your first priority financially, the sooner you start the better. That way your hard earned savings will have longer to grow.
By starting to save in your 20s you could accumulate a substantial retirement fund by the time you retire. If you leave it until you are in your 30s or 40s you would have to save a much larger proportion of your disposable income to provide the same level of income in retirement.
Your plan can provide support to your dependants in the following ways:
- The value of your plan will be paid as a tax-free lump sum, normally to your family or to the person you nominated when your plan was set up.
- If extra life cover has been added to your plan, the appropriate amount will be paid out as well.
- You can tell us who would like to receive your benefits if you die by completing the nomination of beneficiaries form included in your plan documentation.
Don't worry. You can reduce the amount to a level that's more affordable. Or you can stop making contributions altogether then restart when you are ready.
There is no charge for reducing or stopping your contributions. However the amount you get back will be reduced if you choose either of these options.
If you have retirement savings built up with a previous employer, you can:
- Transfer the value of your existing retirement savings. Transfers are complicated, so if you're thinking of doing this you must talk to a financial adviser to make sure it's in your best interests.
- Contribute to both arrangements, so long as you don't exceed the Annual Allowance.
- Stop making contributions and leave the plan invested.
If you join your employer's own plan, you can:
- Contribute to both your plan and your employer's plan at the same time, so long as you don't exceed the Annual Allowance.
- Stop making contributions into your plan and leave it invested.
- Transfer the value of your plan into your employer's plan - provided it is able to accept transfer payments. Transfers are complicated, so if you're thinking of doing this you must talk to a financial adviser to make sure it's in your best interests.
You will be contacted before you start taking your retirement benefits. At this point you will receive information detailing the options that are available to you.
Depending on the type of plan you have, the options available to you may include:
- A regular taxable income by purchasing an annuity from us
- A regular taxable income by purchasing an annuity from another insurance company - this is known as an open market option
- A tax-free lump sum and a lower taxable income by purchasing an annuity from us/another insurance company
- A tax-free lump sum and a retirement income taken directly from your plan.
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