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Managing a schemeIn this

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    Key points

    • The people running your pension scheme need to give your pension scheme members information about their retirement options, and tell them where they can go for further independent retirement advice.

    Thinking about retiring

    Most defined contribution (DC) pension schemes write to their members up to five years before they expect them to retire. Your staff can check their possible retirement income on the Money Advice Service website and request an estimate of their State Pension on the GOV.UK website.

    If your staff are trying to track down a previous workplace pension they can contact the Pension Tracing Service – a free, government service on the GOV.UK website to help find lost pensions.

    Retirement options and decisions

    Your pension scheme must send members information about their options and the decisions they need to make. This includes telling members about Pension Wise, the government’s free and impartial service that will help them understand their choices.

    The member will need to:

    • decide whether they want to retire now or later
    • decide which of the retirement options they want to choose
    • decide what to do if they only have a small pension pot
    • decide what to do if they have more than one pension pot

    Retirement options

    Members of your scheme are likely to have four different options for their pension pot, either available directly from the scheme or on transfer to a different scheme:

    • using their pension to buy a guaranteed income for life (known as a 'lifetime annuity')
    • using their pension to provide a flexible retirement income (known as 'flexi-access drawdown')
    • taking a number of cash sums at different stages
    • taking the whole pot as cash in one go

    For more information about these options, see the Money Advice Service guide Your pension: it's time to choose.

    Further advice for your staff

    For free, unbiased independent retirement advice, including guidance on retirement options, go to the Money Advice Service.

    For free independent information and guidance on pensions go to the Pensions Advisory Service.

    To find a retirement adviser, use the Money Advice Service retirement adviser directory.

    Direct your staff to information on how to protect themselves against pension scams.

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