(Updated 21/07/2023)
Preparing your finances for your retirement
When you get near to your retirement date you'll need to start getting ready to make sure your income is all in place in time. As well as claiming your State Pension, you may need to decide how to invest your personal pension.
When can I start claiming my pension?
You can claim state pension when you reach state pension age. Check when you'll reach state pension age with GOV.UK's state pension calculator.
You might be able to put off claiming your state pension if you want to carry on working after state pension age - this is called 'deferring' your state pension. You can still retire if you defer, or carry on working and take your pension too. GOV.UK has more information about deferring your state pension.
The earliest you can start getting a workplace or personal pension is usually when you’re 55 - you should check this with your pension provider. You might be able to get your pension sooner if you’re retiring due to ill health.
What should I check before retirement?
It's a good idea to start planning when you're nearing retirement age. Here's a checklist of things to do so that you'll be ready:
- work out what money you’ll have coming in and think about how your spending might change once you’re retired - the budgeting tool can help with drawing up a budget
- if you get benefits, let the benefit provider know when you’ll retire - you might have to claim a different benefit or the amount you get might change
- check whether you're entitled to any new benefits - you might be able to get benefits like Carer's Allowance, Housing Benefit or Council Tax Reduction
- work out how much is left to pay on your mortgage (if you have one) - you might want to pay off what's left with a lump sum, but you should get financial advice first
- get an estimate of your state pension - the GOV.UK state pension calculator can help you with this
- track down any pension providers that you’ve lost contact with - the Pension Tracing Service can help with this. Call them on 0845 6002 537 or use their online form to find a lost pension
- get in touch with all your pension providers and let them know you’re planning for retirement - they'll usually send you important information about your pension
- get financial advice or help from Pension Wise if you have a personal pension so that you know your options for how to take your pension - you might have to pay for financial advice but it can save you money in the long term
- consider leaving your pension pot to someone when you die - there’ll be tax implications for doing this, so you should talk to your pension provider or an independent financial adviser
Get help with pension wise
Pension Wise is a free and impartial service to help you understand what your pension options are.
You can find out more about Pension Wise on the MoneyHelper website
