Three tools to help you plan for your retirement

Whether your retirement is still a little way off or coming up quickly, it’s worth taking some time to think about the income you’ll need for the lifestyle you want. This can seem like a difficult decision – who knows what they’ll be doing in five years’ time, let alone for a decade or two – but we have three tools that could help you make effective plans for your retirement.

1) Retirement calculator.
Understand the income you’ll need for the lifestyle you want

Whether you see retirement as a chance to travel the world, concentrate on new projects or simply spend more time with your family, you’ll want to make sure you have enough money to do it all.

Our handy retirement planning calculator assumes a basic cost of living amount and you can add other spending options to give you an idea of the annual income you might need, to suit your desired lifestyle. 

2) Pension drawdown calculator.
Estimate the income you could receive from pension drawdown

Once you have an idea of the lifestyle you’re planning (and if you’ve saved enough to do this), you’ll want to understand how much you could take from your pension, and how long it may last.

Pension drawdown is an increasingly popular option for many. One of its main attractions is the flexibility it offers – you can take what you want from your pension, when you want it, and leave the rest invested. However, while drawdown offers many advantages, you also need to be aware of the drawbacks. For example, drawdown doesn’t provide you with a guaranteed income and there’s a risk you could run short of money in later retirement if you take too much early on.

Our pension drawdown calculator can help you understand how much income you could take and how long your pension might last.

3) Retirement income estimator.
Compare the income you could receive: Drawdown vs an annuity

Our easy to use retirement income estimator can show you the estimated annual income you could expect to receive from your pension savings for the two most common pension income options - annuity (buying a regular income that is guaranteed to last as long as you live) or drawdown (taking as much as you want, whenever you want out of your pension, and changing it if you need to) - as well as a combination of both.

The tool provides more information on both options but please remember there are other choices available to you.

Get support with your plans

There are some big decisions to make at retirement. Our retirement specialists are on hand to help. You can call us on 0800 368 6891. We’re open 9am to 5pm, Monday to Friday. 

You may also want to contact the Government’s free and impartial Pension Wise guidance service which can help you understand your options at retirement. You can access their guidance online at www.pensionwise.gov.uk or over the telephone on 0800 138 3944.

None

More from Fidelity

None

Pension drawdown

Free drawdown access to your pension with our low cost SIPP

None

Tax-free cash options

A free guide to taking cash from your pension

None

Fidelity's SIPP

Bring your pensions together and get £20 to £1,000 cashback. Exclusions, T&C’s apply.

Important information

The value of investments and the income from them can go down as well as up, so you may not get back what you invest. Tax treatment depends on individual circumstances, and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55.

Pension and retirement planning can be complex, so if you are unsure about the suitability of a pension investment, retirement service or any action you need to take, please contact Fidelity’s Retirement Service on 0800 368 6891 or refer to an authorised financial adviser.