Your retirement options – watch our 3-minute video
Get a quick overview of all your available options in just 3 minutes. Our video will help you explore your options with confidence.
Step 1 Consider your priorities
When you retire you’ll need enough of an income to cover your outgoings and to keep buying the things you need or want. But what about what’s on your wish list of things you’ve always wanted to do or see? It's important to make sure you take your retirement savings in the best way for you.
We recommend you speak to an FCA-Registered Financial Adviser to help consider your options.
Get some inspiration from our example members.
Step 2 Explore your options
Currently, you can take your pension from the Plan at any time from age 55. If you take your pension before your normal retirement date, you will receive a lower regular amount as it will be paid for longer. If you earned benefits in the Plan before 1 September 2006, you may wish to make different decisions about separate parts of your pension. This flowchart explains more about the decisions you can make.
Take a pension from the Plan
- A regular, guaranteed income for life
- Typically increases in value to help protect against increases in the cost of living (inflation)
- An income for your eligible dependant if you die
- The option to take part of your pension as tax-free cash
- The Pensions Regulator believes, for most members, it’s likely in their best financial interests to take a pension from the Plan
- Limited flexibility to tailor benefits to suit your needs.
Or, transfer your benefits away from the Plan
- A pot of cash (called a transfer value) to secure a retirement income outside of the Plan which can be tailored to suit your needs
- The option to increase or reduce protection for your dependants
- You need to be aware of pension scams
- If your funds are invested following transfer, you will take on investment risk and pay ongoing investment charges and advice charges
- You’ll need to manage your money to make sure it lasts
- You could end up paying more tax if you take your money all at once.
If you transfer your pension out of the Plan
You will receive an amount of money called a transfer value in return for giving up your right to a pension from the Plan. You can use that transfer value to buy a guaranteed regular income (an annuity), take it a bit at a time (drawdown), take it all as cash, or mix and match. Regardless of the option you choose, you are able to take up to 25% of your transfer value, currently as a tax-free cash lump sum.
Transferring out can not be reversed so make sure you understand the risks and benefits.
We’ll colour code these options the same way throughout the site so you can navigate the site easily.
Transferring out cannot be reversed so make sure you understand the risks and benefits, this FCA webpage and FCA video provide additional information that can help you understand the option and what you could be giving up. You should also be aware of potential pension scams and only transfer out to a reputable provider. Speaking to an FCA-Registered Financial Adviser can help. As a rule of thumb, if something sounds too good to be true, it probably is.
You’ll find an estimate of your pension benefits in the retirement statement you may have recently received from the Plan. Once you’ve read through these details, type in your numbers into the Retirement Options tool to see what these different options could mean for you. If you do not have a retirement statement and are over age 55, you can request one from the Plan administrator, Willis Towers Watson on 01707 607616 or by email: howdenjoinerypensions@willistowerswatson.com
The MoneyHelper website also provides some tools to help with your options, including a pension calculator and annuity comparison tool
Transfer out and buy a regular income for life from an insurance company
- A guaranteed income for the rest of your life, called an Annuity
- Choose the level of benefits and cover you need to match your priorities
- A possible higher income if you have health issues
- You’ll need to shop around to get the best deal.
- Depending on the benefits you choose, the annuity may not provide protection for your dependants or against the effects of increases in the cost of living (inflation).
Transfer out and withdraw cash as and when you need it
- Take your money as and when you need it, called Drawdown
- If you die before 75, savings can often be passed tax-free to an eligible dependant
- You’ll need to ensure your money lasts as long as you need it
- No guaranteed income for your retirement; you’ll need to take on investment risk and pay ongoing investment and advice charges.
Transfer out and take a single cash lump sum
- Take all your benefits as a Cash lump sum
- You’ll be taxed on 75% of the amount you take, possibly at a higher level than you’re used to if you take it all at once
- No guaranteed income for your retirement.
Which option is right for you? – Consider your options
Mix-and-match your options
Consider options side-by-side
Use the Retirement Options tool
| Take a pension from the Plan | Transfer out and buy a regular income for life from an insurance company | Transfer out and withdraw cash as and when you need it | Transfer out and take a single cash lump sum | |
|---|---|---|---|---|
| * Comes at the cost of a reduction in how much money you get each month to start with | ||||
| ** This depends on if your investments perform well and how much risk you choose to take | ||||
| Option:The reassurance of a regular income for life | Take a pension from the PlanYes | Transfer out and buy a regular income for life from an insurance companyYes | Transfer out and withdraw cash as and when you need itNo | Transfer out and take a single cash lump sumNo |
| Option:Pension increases to protect against inflation | Take a pension from the PlanYes (for some elements of pension) | Transfer out and buy a regular income for life from an insurance company? Optional* | Transfer out and withdraw cash as and when you need it? Optional** | Transfer out and take a single cash lump sumNo |
| Option:A pension for my eligible dependant on my death | Take a pension from the PlanYes (included) | Transfer out and buy a regular income for life from an insurance company? Optional* | Transfer out and withdraw cash as and when you need itNo No, not a pension, but see ‘inheritance’ row below | Transfer out and take a single cash lump sumNo No, not a pension, but see ‘inheritance’ row below |
| Option:Leaving an “inheritance” (other than pension, above, or payment if I die within 5 years) |
Take a pension from the PlanNo | Transfer out and buy a regular income for life from an insurance companyNo | Transfer out and withdraw cash as and when you need itYes, Yes, you can leave any leftover funds to your beneficiaries (some of which may be subject to tax) | Transfer out and take a single cash lump sumYes, Yes, you can leave any leftover funds to your beneficiaries (some of which may be subject to tax) |
| Option:Something easy to manage | Take a pension from the PlanYes | Transfer out and buy a regular income for life from an insurance companyYes, after you’ve shopped around for the right annuity | Transfer out and withdraw cash as and when you need itNo, you need to manage money & investments | Transfer out and take a single cash lump sumYes, if you don’t invest the money |
| Option:Money to use now | Take a pension from the PlanYes, currently up to 25% of the value of your pension tax-free | Transfer out and buy a regular income for life from an insurance companyYes, currently up to 25% of your pension savings tax-free | Transfer out and withdraw cash as and when you need itAs much as you like (some of which is subject to tax) | Transfer out and take a single cash lump sumAll of it (some of which is subject to tax) |
| Option:The flexibility to change my income when I like / need | Take a pension from the PlanNo | Transfer out and buy a regular income for life from an insurance companyNo | Transfer out and withdraw cash as and when you need itYes | Transfer out and take a single cash lump sumNo, it’s a single cash lump sum |
| Option:The ability to invest my money myself | Take a pension from the PlanNo | Transfer out and buy a regular income for life from an insurance companyNo | Transfer out and withdraw cash as and when you need itYes, through your drawdown provider (investment and advice charges may apply) | Transfer out and take a single cash lump sumYes, through self investment (investment and advice charges may apply) |
| Option:Suitable if I expect to live a long time | Take a pension from the PlanYes, a guaranteed income for the rest of your life | Transfer out and buy a regular income for life from an insurance companyYes, a guaranteed income for the rest of your life | Transfer out and withdraw cash as and when you need it Possibly - you're in control of how long it lasts | Transfer out and take a single cash lump sum Unlikely – if your HJPP savings are not your only source of retirement income |
Step 3 Make your decision
This is a big decision. It’s important to have all the information you need to make it.
Get a recommendation from a financial adviser
Whether you take a regular income for life from the Plan or transfer your pension it’s a big decision and depends on what’s the right fit for you. We strongly recommend that you get guidance and/or advice if you’re thinking about transferring your pension. In fact, if your transfer value is £30,000 or larger, you have to take advice to transfer out of the Plan to a DC arrangement.
If you would like to speak to a financial adviser, you can find an adviser that is regulated by the Financial Conduct Authority (FCA) by visiting MoneyHelper.
Made a decision?
Great, you can find out more about the Next steps here, as well as learn more about financial guidance and advice.
Not ready yet?
No worries, you don’t have to do anything if you do not want to. These options will be available in the future for when you are ready to start receiving your Plan benefits.