Your retirement timeline

Retirement Investments Insurance Health

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IntroductionWhether you’re fast approaching retirement or are still many years away, there’s always something you can do – or think about – to help improve your chances of enjoying the kind of lifestyle you’d want for yourself.

If you’re not sure what options are available to you and when it’s best to take action, using our timeline may provide you with some helpful pointers.

The timeline suggests things you may want to consider – or actions you might need to take – at different stages as you approach your retirement.

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About 40 years to goIf you’re in your twenties, retirement might seem like it’s a lifetime away. But, remember when the Ipad first came out. Doesn’t seem long ago, does it? That was 2010.

We don’t want to depress you – but it’s probably only about five times that long until you’ll be retired!

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What to do now• Begin by thinking about the kind of retirement

you’d want for yourself:

– Where would you like to live?

– Do you think you’ll want to travel?

– What sort of activities and hobbies do you think you’ll enjoy?

– Will you be financially supporting anyone else?

• Start to consider how you’ll fund your retirement

• Make a retirement plan

– Set yourself some goals – think about what age you want to retire, how much income you want, whether you’ll do any part-time work

– Think about how much you might need to save

– Also consider how much you can afford to save now

– Remember, even if you think you can’t afford to save much, as little as £50 or £100 a month will help build your retirement fund

– Return to your plan regularly to check on your progress.

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About 20 years to goIf you’re aged 35 to 45, you’re likely to have plenty to think about already. Your career, your home, your family... busy times.

You’ve probably also thought about the need to provide for your retirement and you may have a private pension arranged through your work.

At the moment, retirement planning is more likely to be at the back of your mind. But this is the stage in life when many people could benefit from taking a brief ‘time out’ to make sure their retirement plans are on track.

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What to do now• Find out what your pension fund(s) are worth

• Understand whether you’re on schedule to achieve the kind of income you’re looking for when you retire. If you’re not sure how much you should be saving, you can find out using our Shape my Future tool

• Review your retirement plan and see if you need to change anything

– Can you afford to contribute more to your pension?

– If you have more than one pension, would it make sense to combine them?

• Look at all your financial arrangements together

– Your pension is just one of the ways in which you can provide for your retirement. To get the full picture, think about things such as the value of your property, any savings accounts you may have – as well as outgoings such as your mortgage or other loans.

If you require financial advice, please contact a financial adviser. You can visit www.unbiased.co.uk to find an adviser in your area.

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About 10 years to goEven if you’ve kept a careful eye on your retirement planning, this is the time when it pays to do some serious thinking about the decisions you’ll need to make in the lead-up to retirement.

What to do now• Find out what your pension fund(s) are worth

• Take a long, hard look at your plans and check that they’re on track

– Find details of any pensions you may have lost or forgotten

– Make sure you know your options when it comes to taking cash from your pension, and how this will affect your tax position

• Find out what you’re entitled to receive from the state and when you can start to receive it

– Although many people wouldn’t want to manage on the State Pension alone, you need to know how much you’re eligible to receive.

If you require financial advice, please contact a financial adviser. You can visit www.unbiased.co.uk to find an adviser in your area.

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About 5 years to goEven with just five years to go before you’re due to retire, it’s not too late to make important changes which could help you to enjoy a better retirement. This is a good time to start thinking seriously about how long your money may need to last you – as many people underestimate just how long they may be retired.

What to do now• Find out what your pension fund(s) are worth

• Think about how much you’ll need to live on when you’re retired

– You might find you don’t have as many regular expenses when you retire – but it’s important you know how much you’re likely to be spending, so you can work out how much income you’ll need.

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• Review your plans and consider if you’ll have enough income

– If you’re not sure that you’ll have sufficient income, you could consider options, such as delaying your retirement or consider whether you could manage on less income

– Find details of any pensions you may have lost

– Make sure you know your options when it comes to taking cash from your pension, and how this will affect your tax position

• Your savings and investments are just as important as your pension

– Making the most of your £20,000 a year (for the 2019/20 tax year) ISA allowance could help you to save in a more tax-efficient way.

• Find out what you’re entitled to receive from the state and when you can start to receive it

– Make sure you know how much you’ll get from the State Pension and any other benefits you might be able to claim.

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• Think carefully about how long your money may need to last

– No one can tell exactly how long they’ll live – and most of us probably wouldn’t want to know. But it’s important not to run out of money.

• Consider how to provide for your loved ones

– No-one likes to think about dying, but you can enjoy greater peace of mind if you know your loved ones will be provided for by making a will

– Whether you’re planning on using your pension fund for income drawdown or buying a guaranteed income for life, you need to know whether anything would be paid to your dependants when you’re gone.

If you require financial advice, please contact a financial adviser. You can visit www.unbiased.co.uk to find an adviser in your area.

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Less than 1 year to goNow’s the time to collect your thoughts on decisions such as whether to take a cash lump sum from your pension. There’s a lot to think about:

What to do now• Make sure you can afford to retire on the date

you’ve chosen

– If you review your finances and feel you need to defer your retirement there are some important things to consider

– Find details of any pensions you may have lost or forgotten

• Decide how much you’ll need to live on

– You’ll need to have a clear idea of your regular outgoings, as well as thinking about paying for life’s little luxuries

• Find out about your retirement options.

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• Read the information your pension provider sends you

– You’ll receive statements showing how much your pension is worth, together with your options for taking cash from your fund and/or using it to provide an income. This will normally be sent to you six months before your retirement date, with a further reminder of your options two months before you’re due to retire

• Check how much you’ll get from the state

– Your retirement date may not, of course, be at the age when you become eligible for the State Pension. But you should make sure you know how much you’ll get from this and any other benefits you might be able to claim

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• Consider how to provide for your loved ones

– Nobody likes to think about dying, but you can enjoy greater peace of mind if you know your loved ones will be provided for by making a will

– If you’re using your pension fund to provide an income, you need to know whether anything would be paid to your dependants when you’re gone.

If you require financial advice, please contact a financial adviser. You can visit www.unbiased.co.uk to find an adviser in your area.

FE3937 ES01006 11/2019

Aviva Life & Pensions UK Limited. Registered in England No. 3253947. Registered office: Aviva, Wellington Row, York, YO90 1WR.Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Firm Reference Number 185896.Telephone 0345 602 9189 – calls may be recorded.aviva.co.uk

If you require financial advice, please contact a financial adviser. You can visit www.unbiased.co.uk to find an adviser in your area.