Leave your money where it is for now

• The ins and outs of your pension
  Make sure you read through the terms and conditions of your pension.
  Some pensions can have rules which mean you could lose out if you don’t use your money at certain times.
  For example, you may need to use your money to buy an income or annuity when you reach 75, or you may need to take your money at the age you originally planned to avoid losing valuable guarantees.
  So, make sure you know how your pension works and note down any questions you want to ask your provider when you contact them.
  If you’ve got a pension with us, you can find out how to contact us or manage your pension quickly and easily by logging in to MyAviva.
• Your money will still be invested
  As with all investments, there’s a risk that the value of your pension could go down, as well as up. If that’s a concern you can choose to change how your money is invested to lower the amount of risk involved.
  Plus, you’ll still need to pay any fees or charges associated with your pension, so make sure you’re taking those into account. 
• Tax allowances and state benefits
  There may be tax implications to consider if you delay your retirement. Any regulatory changes to income tax, inheritance tax or government allowances could affect your pension.
  

• Annuity rates can change
  If you eventually decide to buy a guaranteed income for life (an annuity) with your pension pot, you may not get as good a deal as you would buying one now. This is because the rates they’re based on can go down as well as up. 
  Although, as an annuity is based on your potential life expectancy, you could receive a higher income if you are older when you purchase one, due to your life expectancy being shorter.
• Life insurance as part of your pension
  If you have life insurance under your pension policy, your life insurance will come to an end at your original retirement date, not necessarily when you take your pension money.
• If you die before taking any of your pension money
  If you die before age 75 your pension pot can usually be passed on to your beneficiaries free of income tax. On or after 75, your pension pot still gets passed on to your beneficiaries, but they may have to pay Income Tax on it. Inheritance Tax is not normally paid on any money that’s passed on, regardless of your age when you die. Keep in mind that tax treatment depends on your individual circumstances. This information is based on our understanding of current UK tax legislation and may be subject to change in future. 
• The retirement date on your pension
  You'll need to let your pension provider know if you plan to defer your pensions nominated retirement date.

Pension Wise

Pension Wise from MoneyHelper is a free, government-backed service offering clear, impartial and specialist guidance on your retirement options. If you’re aged 50 or over, this service is available to you.

Visit the MoneyHelper website or call 0800 138 3944 for full details of the service.