Your options at retirement
Deciding to start taking your pension benefits is an important decision. It’s the point where your years of contribution turn into a secure income for the future. Your pension is designed to support your next chapter – whatever that is – clearly, fairly and with care.
Taking your pension from the Scheme
For most members when they reach retirement age, the next step is to take the pension you have built up in the Scheme.
Your pension is based on your pensionable service and your pensionable salary. For more information visit How your pension builds.
When you come to take your pension, the Scheme automatically provides an annual pension paid monthly. You can also choose to take up to 25% of your pension as a tax-free one-off cash lump sum, which will reduce your annual pension. This is often called commutation.
You will generally have the option to choose a higher lump sum for a reduced annual pension but this will be subject to tax. This is optional and choosing this does not affect benefits payable upon your death. Full details will be included in your retirement quotation to help you make the right choice for you.
Additional Voluntary Contributions (AVCs)
If you paid AVCs whilst a member of the Scheme, your AVC fund must be taken at the same time as your main Scheme benefits. Most members can take up to 100% of their AVC fund as a tax-free cash sum.
Learn more about AVCs and how you can take these at retirement, visit What happens to my AVCs at retirement?
