Plan – Thinking about retirement

Thinking about retirement

As you enter the years approaching retirement, it’s a good time to start thinking about your goals for your future. What would you like your life to look like once you stop or cut down your working hours? How you will get there and are you are on track?

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Choosing when to take your pension savings

You should consider the age you plan to take your pension – your ‘target retirement age or TRA’. 

When you join the scheme your TRA is set to age 65, but it’s important to ask yourself if this is the right age for you. Maybe you’d like to start taking money from your pension earlier, or later.

If you’ve chosen for your pension savings to be invested in one of our Target Date Funds, this means that your pension savings are invested differently as you get closer to your target retirement age.

Your target retirement age tells us when we should start to change the way we invest your money, which is why it’s so important to check we have the right age for you.

We’ll also use your TRA to give you an estimate of how much your TPT pension savings could be worth in the future – this information is included in the Annual Pension Statement you’ll receive from us each year. Your TRA will also determine when we get in touch with you with details of how you can take your pension as you get closer to retirement.

If you want to update your target retirement age, you can easily do this in your online account using the link below.

Are you on track to reach your goals?

Your plans might change over the years, but thinking about them now can help you to get your savings in shape - and make your personal and financial goals more achievable. To find out more about setting your goals and checking you are on track, click the link below.

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  • How do pension investments work?

    Your TPT pension savings are invested in the stock market, in a range of assets or holdings that our fund managers believe will provide good returns, such as company shares, bonds and property. However, it's important to remember that positive returns are not guaranteed and that the value of your investment can go down as well as up.

    When you’re first enrolled with TPT, your pension contributions will be automatically invested in one of our default investment options, which are called Target Date Funds (TDFs).

    In the earlier stages of your pension savings journey, with a TDF, your money is invested in higher risk assets, to give it the best potential to grow. As you get nearer to your target retirement age, your money is moved into more cautious assets, to protect the value of your pension pot from any sudden falls in the stock market in the run up to your retirement.

    If you want to take a more hands-on approach, or have particular religious or ethical beliefs that need to be considered, you can instead choose to invest your pension savings in a range of self-select funds.

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Am I entitled to the state pension?

Don’t forget about the state pension! This can make up a crucial part of your income when you retire, so it’s important to know what you might be entitled to, and when you can start receiving it. Click below for more information.

Are my details up to date?

As you start to plan your retirement, it’s a good idea to check that your beneficiaries are up to date and that we have the correct target retirement age for you - especially if your pension savings are invested in one of our Target Date Funds, as this will affect the type of funds your savings are invested in.

To check your personal details and to make any changes, simply sign in to your online account.

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  • What are my options for accessing my pension?

    Did you know there’s more than one way to take your pension? When you're ready to start accessing your pension you can choose from a number of options:

    1. Take your whole pot in a single cash lump sum. You can take all your pension savings as a one-off cash lump sum, with 25% tax free
    2. Take a series of lump sum payments from your pension pot. You can take lump sums directly from your pension pot, a bit at a time, and 25% of each withdrawal you make will be tax free
    3. Draw a flexible retirement income - also known as flex-access drawdown. You can take your 25% tax free cash up front and move your taxable pension savings into a drawdown product to carry on investing.
    4. Purchase an annuity. You can use your pension savings to buy an 'annuity' that'll give you a guaranteed regular income, either for the rest of your life or up to a specific age or date. If you choose an annuity, you're still able to take 25% of your pension savings tax free

    To find out more about these options and how they work, click the link below.

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How can I learn more about investments?

If you want to find out more about how pensions, investments and retirement work, our Pensions Learning Hub is for you! 

Our Pensions Learning Hub contains a mixture of video guides and live online seminars, designed to guide you through your pension journey – from the start of your career until retirement. There are even dedicated sessions on mid-life pension planning and how to make sense of retirement and understanding your options.

Can I talk to someone about my retirement plans?

As you approach retirement, there are a lot of things to consider when it comes to taking your savings and you might not know quite where to begin. Thankfully, the Government offers a great free service called Pension Wise that can take you through your options and help you make the right decisions.

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What if I want more help?

Do you feel like you want more help understanding your pensions, or assistance with working out how much you need to save for the future? If this sounds like you, you might benefit from financial guidance, or even an appointment with a financial adviser.

For more information on financial guidance and financial advice, including what the differences are and how you can access them, click below.

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