Your circumstances and priorities

Short / Long life expectancy

When making your decision, you should consider your spending needs for the estimated length of your retirement and the implications of death for your beneficiaries.

Predictability / Flexibility

When making your decision, you need to consider whether you prefer the comfort of knowing that you will have a regular income or the flexibility to withdraw funds according to your needs.

Main source / Part of retirement income

If you have multiple sources of income that provide you with financial security, such as other Defined Benefit (Final Salary) pensions, you could take more risk with your pension. The opposite may apply if this is your only source of income

Short-term / Long-term Income

When making your decision, you need to consider which option best suits your current and future spending needs, and ensure that you are managing your income throughout retirement.

Security / Opportunity

When making your decision, you need to consider the level of risk you are comfortable with as well as your ability or desire to manage your funds throughout your retirement.

Which option is right for you? – Compare your options

Understand the features of the retirement options you have and see what’s important to you. This will help you make your dream a reality.

Take your benefits from the Scheme Transfer out and buy a regular income for life (an annuity) Transfer out and withdraw cash as and when you need it (drawdown) Transfer out and take a single cash lump sum
1. Your Scheme may feature a guaranteed period where a lump sum could be paid to any dependants if you die within a certain time period after you’ve started taking your benefits.
2. If you have a shorter life expectancy you are likely to be entitled to a higher income
Option:Main source of retirement income Take your benefits from the SchemeYes Transfer out and buy a regular income for life (an annuity)Yes Transfer out and withdraw cash as and when you need it (drawdown)Yes Transfer out and take a single cash lump sumNo
Option:Part of my retirement income Take your benefits from the SchemeNo Transfer out and buy a regular income for life (an annuity)No Transfer out and withdraw cash as and when you need it (drawdown)Yes Transfer out and take a single cash lump sumYes
Option:Predictability Take your benefits from the SchemeYes Transfer out and buy a regular income for life (an annuity)Yes Transfer out and withdraw cash as and when you need it (drawdown)No Transfer out and take a single cash lump sumNo
Option:Flexibility Take your benefits from the SchemeNo Transfer out and buy a regular income for life (an annuity)Yes Transfer out and withdraw cash as and when you need it (drawdown)Yes Transfer out and take a single cash lump sumYes
Option:Security Take your benefits from the SchemeYes Transfer out and buy a regular income for life (an annuity)Yes Transfer out and withdraw cash as and when you need it (drawdown)No Transfer out and take a single cash lump sumNo
Option:Opportunity Take your benefits from the SchemeNo Transfer out and buy a regular income for life (an annuity)No Transfer out and withdraw cash as and when you need it (drawdown)Yes Transfer out and take a single cash lump sumYes
Option:Short-term income Take your benefits from the SchemeNo Transfer out and buy a regular income for life (an annuity)No Transfer out and withdraw cash as and when you need it (drawdown)Yes Transfer out and take a single cash lump sumYes
Option:Long-term income Take your benefits from the SchemeYes Transfer out and buy a regular income for life (an annuity)Yes Transfer out and withdraw cash as and when you need it (drawdown)Yes Transfer out and take a single cash lump sumNo
Option:Short life expectancy Take your benefits from the SchemeYes1 Transfer out and buy a regular income for life (an annuity)Yes1, 2 Transfer out and withdraw cash as and when you need it (drawdown)Yes Transfer out and take a single cash lump sumYes
Option:Long life expectancy Take your benefits from the SchemeYes Transfer out and buy a regular income for life (an annuity)Yes Transfer out and withdraw cash as and when you need it (drawdown)No Transfer out and take a single cash lump sumNo

People like me

Below you’ll find some example members. We talk about their lifestyle and circumstances, what was important to them (their priorities) and how that aligns to one the available retirement options.

Meet Sally

For Sally and her husband Jim, looking forward to a predictable week is their idea of perfection. There’s always time for a movie on a Monday, a bit of fish ‘n’ chips on a Friday, and that ballroom dancing class that they’ve always wanted to take…

Read the full factsheet

A pile of polaroid images

Sally prioritised…

Predictability

Sally liked knowing exactly how much she’d receive each month.

Security

She knew that her pension payments were not dependent on investment performance.

Long-term income

She took comfort knowing that her pension would be paid for the rest of her life.

Meet Harold

Harold’s always been a character. He didn’t expect to fall in love with the wildly successful owner of a large luxury goods retailer, but you can’t choose who you love. He’s thought about popping the question, but marriage was never for them.

Harold has decided to delay taking his retirement savings for the time being. He plans to transfer out and buy a tailor-made annuity, as it’s likely he won’t need to provide for his partner.

Read the full factsheet

A pile of polaroid images

Harold prioritised…

Predictability

Harold wanted a simple, low maintenance, regular income that he could rely on.

Flexibility

He valued the ability to delay his retirement and buy a tailor-made annuity with a higher income just for himself.

Long-term income

A tailor-made annuity meant Harold could rely on an income for the rest of his life.

Meet Privani

Privani worked part-time until she retired from her ‘day-job’ and opened up her dream B&B with her daughter Deepa. In the summer months, life can be hectic, but she loves the independence and thrill of running her own business.

Privani decided to transfer out, take the maximum tax-free cash lump sum and invest the rest in a Drawdown fund.

Read the full factsheet

A pile of polaroid images

Privani prioritised…

Opportunity

Privani kept some of her savings invested with the aim of growing them for the future.

Flexibility

She was able to withdraw more money in the winter when the business wasn’t quite so busy.

Short-term income

Her lump sum and Drawdown fund meant she could build her business in the short term.

Meet Ben

4 years. 4 FA Cup Finals. The prognosis had taken some getting used to. Ben had always been a fierce football fan. But the time limit that the doctor had given him felt like a red card. Now he’s determined to live the rest of his life to the fullest, and attend every match he can, before he hangs up his boots.

Ben decided to take the full transfer value as cash and retire early at 55.

Read the full factsheet

A pile of polaroid images

Ben prioritised…

Short-term income

Even though he had a large tax bill to settle, Ben wanted all of his savings as soon as he retired.

Flexibility

He wanted the freedom to retire early and fulfil his football dreams.

Short life expectancy

Ben doesn’t have a lot of time left and is determined to make the most of life.