Retirement Pensions - What to Expect
As people approach retirement they are understandably concerned about their future finances. This is partly because the vast majority of us know that we will have less income in retirement and that the income we do have will be affected by factors such as interest rates, inflation and so on. It’s also partly because many people aren’t quite sure how their retirement pension will work.
For many people, an understanding of how much income they will receive from their pension(s) in retirement will be a key factor in deciding when to retire, so it is vital that everyone has good information about their pension income.
On that note, it's worth pointing out that, once we get to state pension age, we no longer pay national Insurance contributions. So bear that in mind if you are trying to work out what your income in retirement is likely to be - you no longer have to deduct 12% of your income
above the Earnings Threshold and 2% for earnings above the Upper Earnings
Limit). It also makes the pension go that little bit further!
So this short section of the website is designed to give you a brief overview of the different types of retirement pension and how you can get more detailed information on your pension.
When you have read it, you might like to go to our Planning Retirement Guide, which will give you some more thoughts and ideas for making the most from your retirement. Take a look, too, at the page on retirement pensions in the Finance section of the website.