This section helps you to look at your pension savings all together.
One of the first things to do is to decide roughly when you are likely to want to start accessing your pensions savings. This is called your Target Retirement Date. You can change this at any time but it helps to look at the estimated value of your savings at a certain date.
The government offers a service to help you trace previous schemes at: http://www.gov.uk/find-lost-pension. This service does not cover personal pension schemes - you will have to write to the provider to get details of your benefits. The provider is usually the insurance company or other financial institution which invests your contributions until you retire.
You can transfer benefits from other pension schemes into Cheviot at retirement to access the new flexibilities.
Some might be money purchase, others might be final salary. You need to consider the benefits differently so make a list of each.
A money purchase scheme is a scheme which provides a fund at retirement rather than a guaranteed income. The level of income is not known and will vary depending on which options you choose. If you choose to access your fund early, it is likely to be smaller. A money purchase scheme is also known as a defined contribution scheme.
A final salary scheme is a scheme which provides benefits based on your salary at retirement or when you left the scheme. The amount of income at retirement is known and will usually increase from the date you leave the scheme to the date you take your benefits. You may have paid contributions to the scheme. A final salary scheme is sponsored by an employer who pays the balance of the cost. Final salary schemes are sometimes called defined benefit schemes. Contact the administrators of your scheme for more information. If necessary use the Government's tracing service.
Most money purchase schemes will provide annual statements. Some final salary schemes provide a statement when you leave but then do not contact you again until you are close to retirement. You might need to contact some of the schemes to get updated information. Use the relevant form to note the key information.
You need to list the value of your fund today for each scheme and the projected value at your Target Retirement Date. Projections are only estimates and your fund at retirement might be more or less than the projection. Make a note of the retirement date as it may be different for each scheme. Defined contribution schemes usually allow you to take your benefits from age 55 but this is not always the case.
If you have left your final salary scheme, your statement will show what your pension was at the date you left. It may also show (or you can request) an estimate of what the pension will be at your retirement date, whether any benefits are provided for your spouse or dependants and any pension increases. It is really important to check what the retirement date is under the scheme and so when the pension is payable. You may be able to take it early but it is likely to be reduced. If you take it later, then it may be increased.
Once you have gathered the information, you can use it to estimate how much income you will have in retirement. Remember:
Cheviot's online Compare Your Options tool can help you understand the choices. You to enter your own details, including any future contributions, and then compares the three main options for you. You can include any final salary benefits and State Pension benefits too.
You may find that the likely income is less than you need in which case you may need to consider whether to increase your contributions, invest your fund differently or change the date when you plan to retire. You can use our Compare Your Options tool to help you with this.
The information on this page is provided in good faith but is not legal or financial advice or binding on the Trustee. The trust deed and rules will override in the event of any inconsistency.
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