As you get closer to retirement, you may start thinking about when to take your pension, how much you might need, and what your income could look like in the years ahead.
The good news is that you don't have to make these decisions on your own. There are different types of support available to help you understand your options and feel more confident about your next steps.
Many people start with guidance to learn more about their retirement choices. Others choose to speak to a financial adviser if they would like recommendations based on their personal circumstances. Guidance can help you understand your options, but it won't tell you which choice is right for you.
This information is for general guidance only and does not constitute personal financial advice. Current legislation and your personal circumstances may change.
Start with guidance
For many people, guidance is a helpful first step.
It can help you understand:
The different ways you can access your pension
How you might take your money
The key things to think about before making a decision
At Scottish Friendly, our online tools and retirement support resources <add link when available> are designed to help you explore your options at your own pace and build a clearer picture of what retirement could look like for you.
Scottish Friendly doesn’t provide advice. The information provided can help you decide if the product is suitable for you and your family. If you’re not sure which product is suitable, you should contact a professional adviser for advice. Advisers may charge for providing such advice and should confirm any cost beforehand.
Consider Pension Wise
Before making a decision about taking money from your pension, it's worth considering a free appointment with Pension Wise.
Pension Wise is a government-backed service available to people aged 50 and over. They offer free, impartial guidance to help you understand your options and the things you may want to think about before accessing your pension.
They can help you understand:
The different ways you can take your pension benefits
How your choices could affect your retirement income
Important factors to consider before making a decision
Many people find Pension Wise appointments helpful for talking through their options and gaining a better understanding of what lies ahead.
Taking your next steps
Once you've explored your options, you may feel ready to make a decision, or you may decide you'd like additional support.
Common decisions at this stage include:
When to start taking your pension
How much to take, and how often
Whether to take lump sums, a regular income, or a combination of both
Where financial advice may help
Some people feel comfortable making their own decisions using guidance and the information available to them. Others prefer personalised support before making a choice.
You may wish to consider financial advice if:
You have more than one pension or older pension plans with valuable guarantees
You would like help understanding how long your retirement savings may last
You're considering your wider financial situation and retirement goals
You would like support before making an important financial decision
You're thinking about how to pass on your pension savings to your loved ones
A financial adviser can look at your individual circumstances and provide recommendations based on your personal needs and objectives. If you decide to seek financial advice, MoneyHelper provides guidance on finding and choosing a financial adviser and understanding the advice process.
Stay alert to pension scams
Unfortunately, pension scams are becoming increasingly common and can have a serious impact on your retirement savings.
Be cautious of unexpected contact, promises of high returns, offers that seem too good to be true, or anyone pressuring you to make a decision quickly. Scammers often create a sense of urgency to encourage people to act without taking the time to consider their options.
Before making any decisions about your pension, take time to check that the information and advice you receive is from a trusted source. If something doesn't feel right, pause and seek further guidance.
For more information on how to identify and avoid pension scams, please read our: