Over 55? When it comes to your pension plan, here are a few things to review

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Thinking about retiring soon? Already started taking money from your pension plan? Whatever the case, here are a few pension-related things worth reviewing if you’re over 55.

Review how much you have now – and what you could have later

Still got money in a pension plan? Then it’s important to know how much you’ve got, as this can help you plan for the years ahead.

If you have an online account with your pension provider or you use their app, you can usually see how much is in your pension plan by logging in.

You’ll probably also have some paperwork that you can check. For example, if you have a ‘defined contribution’ pension plan, you should get an annual statement. This tells you how much your plan is worth at its anniversary date. Or if you’re taking your money already, you might get a statement telling you how much you’ve taken. 

If you have a ‘defined benefit’ plan, you might not get statements. But you can ask your provider if you want more information about your plan.

Oh, and one more thing. Your State Pension is different from any pension plans that you’ve set up yourself or got through your work. But you can still check how much you might get in future. How much you’ll be entitled to really depends on your National Insurance record. You can find out how much you’re on track to get, and how to potentially boost it, on the government’s website. You can also look at your National Insurance record on the same site.

Review your pension investments

When money is paid into a pension plan, it gets invested. You can usually check how and where your money’s invested online or through your provider’s app. If not, you can get in touch with your provider.

You might’ve picked your own investments from a range of fund options. Alternatively, you might be in a ‘ready-made’ investment option where experts choose for you (sometimes known as a ‘lifestyle profile’).

If you’re in a lifestyle profile, the investment manager will usually gradually move your money into lower-risk investments for you as you approach your chosen retirement date. And they’ll normally choose investments based on how you’ve said you want to take your money. Why? Well, some investments might be better for you if you’re planning to buy an annuity. Others might be better for you if you’re opting for, say, drawdown (which is an option that lets you set up a regular income – for example, the same amount each month – or take money when you want to).

The bottom line is: whether you’ve had the work done for you or chosen your own investments, it’s worth reviewing them to make sure they line up with what you’re planning to do with your money. And ask yourself whether you’re happy with the level of risk involved. Remember, when you’re close to or in retirement, your money has less time to recover from dips in the market than a younger person’s would. 

You might find you don’t want to make any changes to your investments – but it’s important to make sure you’re comfortable with them. 

To find out more about what to consider when checking and choosing pension investments, you can read our article. You can also get more information about pension investments on MoneyHelper. When it comes to your investments, the decisions you make can have a big impact on your finances. So if you’re unsure, it could be worth getting financial advice from a financial adviser.

The value of your investments can go down as well as up, and you could get back less than was paid in. 

Review your information

Make sure your contact details, like your home and email addresses, are up to date on all of your pension plans. This helps your providers contact you with important information. 

If you haven’t started taking your money yet, make sure that the date on your pension plans reflects when you intend to take it. This is important as the retirement date on your plan can actually affect your investments.

It’s also a good idea to make sure you’ve told your providers who you want your pension savings to go to when you die – known as your ‘beneficiaries’. And be sure to review your beneficiaries to make sure you’re still happy with your choices. Your provider isn’t legally bound by your wishes, but they’ll take them into account. Keep in mind not all pension plans will give you the option of naming a beneficiary.

You may be able to do all of this online or through your provider’s app. If not, contact your provider. You may need to fill out a form to name your beneficiaries.

It’s Pension Engagement Season 2024

We’re proud to sponsor Pension Engagement Season, which is all about getting people to pay their pension more attention. So use these three steps to invest some time in yourself and your pension today.

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The information here is based on our understanding in September 2024 and shouldn’t be taken as financial advice.

A pension is an investment. Its value can go down as well as up and could be worth less than was paid in.

Standard Life accepts no responsibility for information in external websites. These are provided for general information.