Make your decision

How does guidance work?

Guidance is designed to help guide you through your retirement choices.

Often, it will be in the form of a short telephone discussion or online webchat, during which a retirement specialist will discuss the options you have for using pension savings, including:

• How the annuity, drawdown and cash lump sum options work
• Where you can get further information or advice
• What to do once you have made a decision.

Please note: Guidance does not usually:

• Provide you with financial advice or consider your wider financial position, including any other savings
• Give you a specific recommendation
• Cover your options for any other pension savings you may have
• Implement your chosen option – you are responsible for completing and returning the relevant paperwork to set up your retirement income
• Talk through the providers available for the different retirement options.

Getting free guidance from Pension Wise

As long as you are over 50 years old, you can have a free guidance call of up to an hour with a pension specialist from Pension Wise, a service that is provided by the Government.

To book your appointment, please call Pension Wise on 0800 138 3944 between 8am to 8pm, Monday to Friday. They will send you an email confirmation of your booking.

Or you can book an appointment online here

What is financial advice?

Unlike guidance, by taking financial advice on your retirement options, you’ll receive a specific recommendation on the most suitable option for you, based on your own personal circumstances and financial situation.

This advice must be provided by a person who is appropriately regulated by the Financial Conduct Authority (FCA).

How does this differ from guidance?

Guidance is intended to help you understand the different retirement options available, to enable you to make a decision.

Why might I want to take financial advice?

While the decision on whether to take financial advice is a personal one, there are some circumstances in particular where taking advice, instead of, or as well as, guidance, may be appropriate.

Examples of such circumstances include:

• You have a large pension fund
• You expect to be affected by the Lifetime Allowance (pension savings above this limit incur additional tax charges)
• You have complex income requirements in retirement
• You live overseas now or you’re planning to move abroad
• You have significant other assets outside your pension arrangement (excluding your own home)
• You are in serious ill health
• You have complex debts to manage.

Where can I find a financial adviser?

You can find a financial adviser by visiting the Money and Pensions Service’s page on choosing a financial adviser.

Who pays for financial advice?

You will be responsible for meeting the costs of financial advice. Your financial adviser should provide you with an estimate of their costs before they start the advice process.

What does my adviser need to know?

• Your current finances (for example, debts, income, outgoings, savings)
• Details of your pension savings and any other pension savings you have
• Your health and lifestyle
• Your plans for retirement
• Your dependants.