Pensions and retirement
Whether you're looking for ways to save towards retirement or trying to work out when you can retire, at Bestinvest, our aim is to provide you with the tools and information to make informed decisions.
The value of a pension and the income from it can go down as well as up – and you could get less than the amount that's been put in.
You should consider charges, investment choices and any valuable benefits that could be lost before combining any pensions.
Important information: The Best SIPP is for people who want to make their own decisions when investing for retirement. As investment values can go down as well as up, you may end up with a retirement fund that’s worth less than what you invested. Usually, you won’t be able to withdraw your money until age 55 (57 from 2028). Before transferring your pension, check if you’ll be charged any exit fees and make sure you don't lose any valuable benefits such as guaranteed annuity rates, lower protected pension age or matching employer contributions. If you’re unsure about opening a SIPP or transferring your pension(s), you should speak to an authorised financial adviser.
Saving for retirement
The earlier you start planning and saving for your retirement the better. How you choose to save towards and invest for retirement will depend on your circumstances. Paying into a private pension like the Best SIPP can help supplement your workplace or state pension savings. Pensions are free from UK income and capital gains tax.
Personal pension (SIPP)
Planning ahead for retirement? Get flexibility with a Self-invested Personal Pension (SIPP).
Junior SIPP
Give your child a financial boost in retirement and kick off their pension.
Tools to help you plan for retirement
The Retirement simulator, available to Bestinvest clients, allows you to set a high level plan for when you want to retire and how much money you think you’ll need to fund your retirement. You can then see how you might achieve this based on how much money you can invest now and over time and the investment growth you are targeting.
The calculations do not factor in pension products specifically and the figures provided are not guaranteed and you could get back more or less than the amount shown.
If you're an existing Bestinvest client, log in to your online account and head to the Life plan section.
Approaching retirement
There's lots to consider when it comes to your retirement.
Some of our clients find it helpful speaking with a member of our coaching team as they approach retirement. Our Coaches can provide guidance and education about your options but they cannot give you specific investment advice. All of our Coaches hold the Level 4 qualification in financial planning from the Chartered Insurance Institute (CII).
The government's free and impartial Pension Wise service can also help you to understand all of your options.
Accessing your pension
There are three main ways to take your personal pension, which you can usually do from age 55 (57 from 2028). What you choose to do with your pension is an important decision. You should check you're making the right decision for your circumstances and that you understand all your options and their risks.
Income drawdown
Read our handy definition of what income drawdown involves – and see how it could provide you with a valuable source of retirement funding. While offering a flexible solution, it’s important to remember that your income won’t be guaranteed.
Lump sum withdrawals
Taking lump sums from your pension can help with holiday costs, mortgage payments or even covering a housing deposit for your children. Weigh up your different options and learn how much you can withdraw as tax-free cash with this Bestinvest guide.
Annuities
Annuities can offer a guaranteed retirement income, providing a series of regular payments and more certainty about the amount you’ll get. But there are plenty of pros and cons to consider, as our bite-sized explainer article highlights.
Pension guides and information
From the basics to the baffling, untangle the world of pensions with our range of handy articles and guides in our Pensions explained hub.
What is a Self-invested Personal Pension (SIPP)?
A SIPP is a type of personal pension that gives you more control over your pension investments but they are not suitable for everyone.
How do pensions work?
Explore the ins and outs of defined contribution schemes with the help of our pension life cycle.
What are the different types of pensions?
The state pension, workplace schemes and personal pensions all have very different purposes, features and benefits.
Understanding pension tax reliefs, benefits and allowances
Pensions offer a range of tax benefits to encourage you to save towards the future. But you’ll need to stay within certain allowances to steer clear of any tax charges.
Pensions for self-employed
Read our self-employed pension guide which covers some of the main benefits of paying into a pension scheme..