Aviva pension

Retirement may seem a lifetime away, so it might be tempting to do nothing in the short term. But the sooner you start saving, the better your chance of enjoying the future you want. All the money you put into a pension now — even if it’s a small amount each month — has many years to grow.

Paying into your pension now

You already have a pension with Aviva, which is a great start. But what’s the right amount to put into your pension? We suggest as much as you can afford, which will depend on your circumstances, and will be different for each person. A good rule of thumb is to put 12% of your monthly salary into your pension, with the aim of saving at least 10 times your annual salary by the time you retire. With your retirement a way off, kickstarting your savings now could help you build up a decent pot to fund the retirement you're looking forward to.

Check in on your workplace pension

It's worth keeping a regular eye on your pension to make sure you're on track to hit your retirement goals. You can do this using your Aviva account, either online or in the app. We can help you work out how much money you'll need in your pension by the time you retire through our Shape my Future tool.

When you change jobs

If you’ve moved to a different job, your old workplace pension is still here working hard for you, and you've got options about what to do with it, such as simply leaving it where it is, or putting all your pensions in one pot to help make things easier to manage. Find out more about transferring pensions. Capital is at risk.

Ready to learn more?

If so, we have articles, tools and more to help you feel pension confident.

By now, it’s likely that you’ve had a few different employers and roles, and you’re entering your prime earning years. And, at home, you may well have a mortgage and a family.

You might have also had a few workplace pensions, so you may need to take a more active role in managing them.

Keeping track of your pensions

Several employers probably means several workplace pensions. It can be easy to lose track of what you’ve got, which means you won’t be sure how much you’ve saved. If you’ve got physical paperwork, like annual statements, keep it all together in a safe place. If you've lost track of any pensions, there's a free government Pension Tracing Service to help you trace them.

Nominating your beneficiaries

It's important to make sure you've nominated one or more beneficiaries for your pension savings, particularly if you have a family. Your beneficiaries are the people who will usually inherit any remaining pension pot when you die. They don't have to be your spouse or civil partner — you can nominate charities, for example. If you don't nominate a beneficiary, we'll usually distribute your pension pot to your next of kin, but nominating a beneficiary makes your intentions clear. You can do this quickly and easily through your Aviva account, either online or in the app. We're not legally bound to act on your nomination but we will take it into account when choosing a beneficiary.

Think about what kind of retirement you’d like to have

It’s never too early to do a bit of retirement planning. The big questions to think about are: what do I want my retirement to look like, how much income will I need, and how long will it need to last?

Your pension statements will be a good way to help you work out whether you’ll have enough money in retirement. How well do the monthly figures compare with what you’ll need?

Paying more into your pension

You’ve tracked down all your pensions, and you’ve worked out how much money you may need at retirement. Even if your finances seem in good shape, it’s always better to save more than you think you’ll need, so you may want to consider if you can afford to pay more into your pension. Your retirement may still be a way off, so your pension pot has time to grow.

Consolidate your pensions into one place

If you’ve got several pensions, think about whether to move them all into one place. It’s not right for everyone, so grab all your pension paperwork and look through details like special features, guarantees, fees and exit charges. Also look at the pension you’re thinking of consolidating the others into. Are there charges for transferring in? What are the ongoing fees? If in doubt, speak to a professional. You may have to take advice when transfering some pensions, for which the adviser will charge a fee.

Your capital could fall or rise in value, and you could get back less than has been transferred. Find out more about transferring.

Want more guidance?

If you’re ready to learn more about pensions, we have more detailed guidance to help you feel confident about your choices.

By now, your retirement age is getting closer, which means soon you’ll hopefully have more freedom to do the things you enjoy.

However, there are a few more decisions to consider when it comes to your pension to ensure you have the retirement you’re looking forward to.

Keeping track of your pensions

Several employers probably means several workplace pensions. It can be easy to lose track of what you’ve got, which means you won’t be sure how much you’ve saved. If you’ve got physical paperwork, like annual statements, put them all together in a safe place. If you've lost track of any pensions, there's a free government Pension Tracing Service to help you trace them.

Nominating your beneficiaries

It's important to make sure you've nominated one or more beneficiaries for your pension savings, particularly if you have a family. Your beneficiaries are the people who will usually inherit any remaining pension pot when you die. They don't have to be your spouse or civil partner — you can nominate charities, for example. If you don't nominate a beneficiary, we'll usually distribute your pension pot to your next of kin, but nominating a beneficiary makes your intentions clear. You can do this quickly and easily through your Aviva account, either online or in the app. We're not legally bound to act on your nomination but we will take it into account when choosing a beneficiary.

Think about when and how to start taking your money

From age 55 (57 from 6 April 2028 unless you have a protected pension age), you can take a cash lump sum, withdraw money from your pension when you need it, buy a guaranteed income for life or do a combination of these things. Find out more about the changes to the minimum pension age.

There are lots of options to consider, and you can even mix and match. Pension Wise from MoneyHelper is a free, impartial, government-backed service. If you're 50 or over and you want to understand your retirement options, make it your first port of call. Visit the MoneyHelper website or call 0800 138 3944 for details. 

Before you make any decisions, it makes sense to talk to your financial adviser. If you don’t have an adviser, we can help put you in touch with one.

Want more guidance?

If you’re ready to learn more about pensions, we have more detailed guidance to help you feel confident about your choices.

You’ve worked hard to build up your retirement savings, but there’s still more you can do to make your pension work as hard as it can.

You have options: will you take your pension all at once or take your money as and when you need it, or choose a guaranteed income for life - or use a combination of options? You may know what you’d like to do next, but it’s always good to consider your options and understand them fully. You're also able to leave your retirement savings where they are if you're not ready to access them.

If you choose an option where some or all of your money is still invested, remember that its value may fall as well as rise and you may get back less than you invested. 

When you start to think about taking your pension, you should consider shopping around different providers, as dependent on your needs and personal circumstances, other providers may offer a higher level of income.

Keeping your pension money where it is

Things to consider:

• If you're still contributing to your pension, do you know the annual contribution limits for the type of pension you have?
• If you aren’t making pension contributions, are you missing an opportunity?
  

Things to consider:

• Have you calculated how much income you’ll have from all your pensions when you retire? Don’t forget to use the government’s Pension Tracing Service to track down all your pensions
• Have you checked whether you’re entitled to the State Pension and, if so, how much you’ll receive? This depends on how much National Insurance contributions you’ve paid. You might also be able to claim Pension Credit

Taking a guaranteed income for life

You can take up to 25% of your pension pot tax-free, then with the rest you can buy an annuity to give you a guaranteed income for as long as you live. You'll have to pay tax on this income. You can have an idea of what this income might look like using our pension annuity calculator.

Things to consider:

• Once an annuity’s up and running, you can’t make changes
• There are different types of annuities, depending on your health and lifestyle — an enhanced annuity could provide a higher income.
• We’ll pay your annuity income for at least a year — if you pass away in that time, the money will still go to your estate
• If you die within 90 days of setting up your annuity, your estate will receive the money you used to buy the annuity minus any payments you had already received

Taking all your pension money as a lump sum

You could withdraw all the money from your pension. You can take up to 25% of this tax-free, but you’ll have to pay income tax on the rest at once. Read more about taking all your pension in cash.

Things to consider:

• Are you aware of the tax implications and can you afford the potential tax bill if you take out all your money?
• Could emptying your pension now leave you short of money later on?
  
• Be aware of pension scams. Read more about how you can protect yourself from fraud

Want more guidance?

If you’re ready to learn more about pensions, we have more detailed guidance to help you feel confident about your choices.