Getting ready for retirement

You have more choice and flexibility in how you set up your retirement income than ever, so there is much more you need to know. For example tax rules, legislation and how the decisions you make now will affect the options available to you in the future.

There are lots of ways we can help with your retirement planning: you can call our retirement specialists on 0800 368 6882 if you’d like personal advice or simply want to talk about your retirement options.

Your retirement income options

So what will you be able to do with your money? Below are your main options, but remember that if you have a final salary pension scheme (defined benefits) these are not automatically accessible to you in the same way.

Flexible income (drawdown)

Taking lump sums

Guaranteed income (annuity)

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The government's Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access the guidance online at www.pensionwise.gov.uk or over the telephone on 0800 138 3944.

Be prepared

Have a plan

A good plan can help you understand what your retirement goals are and how you will afford to achieve them.

Multiple pensions

If you have savings in several pensions – which is likely if you’ve changed jobs during your career – you could bring them together into one pension. With its low cost and range of funds, the Fidelity SIPP could be an ideal way to access your pension benefits from one place.

The Lifetime Allowance

If the value of your pensions reaches £1 million, the Lifetime Allowance rules could see you facing unwelcome tax charges depending on how and when you access your pension pots.

Final salary pensions

These pensions give you an income for life, so they’re usually worth hanging on to. In some situations moving the savings into a personal pension could better meet your needs, and even allow you to get more for your money. Our retirement specialists can provide advice for a fee.

Leaving something to your loved ones

It will hopefully be years – and, ideally, decades – before you leave a legacy to anyone. But if you do want to leave something you need to plan for it. This will help ensure there is money to leave, that it is left to the people you intend and the appropriate tax pitfalls are considered.

Drawdown with the Fidelity SIPP

If you want to go into drawdown then you can choose to do it with the Fidelity SIPP (Self-Invested Personal Pension).

  • You can take up to 25% as a tax-free lump sum straight away or in stages.
  • You can choose how much to take and how often.
  • You can choose where to invest your pot (though remember that investments can go down as well as up, so you may get back less than you invest).
  • Our low pricing has no hidden charges or fees, so you know exactly what you pay for and when you pay it.

If you choose Fidelity for your pension drawdown then you’ll need to transfer your existing pensions to our SIPP.

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Making the right investment choices

As you are likely to be in retirement for 20 years or more, it’s important to consider where you invest your pension to match your retirement goals. You might be comfortable selecting your own investments, or you may need a bit more support - either way we can help. Please remember that investments can go down as well as up, so you may get back less than you invest.

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Get some expert help

Whether you're getting ready to retire and need a bit of help navigating the options and pitfalls, or if you just want to talk it all through with someone, our retirement specialists can help.

Our Fidelity's retirement service has retirement specialists who are able to provide both guidance and advice about your retirement needs. The service we offer is based purely on helping you find the most appropriate solution for your personal circumstances and our flat-rate advice fee is one of the lowest of any other leading providers. Call us on 0800 368 6882

Please remember that the value of investments can fall as well as rise, so you may get back less than you invest. It’s important to understand that pension transfers are a complex area and may not be suitable for everyone. Before going ahead with a pension transfer, we strongly recommend that you undertake a full comparison of the charges, features, and services offered.

Remember, you won’t be able to access money invested in a SIPP until the age of 55.

To find out what else you should consider before transferring, please read our Fidelity SIPP Transfer Factsheet.