If you decide not to take your pension plan right now and leave your money invested, you should check that your fund choices are still right for you - generally funds with the greatest risk have the potential for greater returns but also the potential for greater loss. The money in your pension plan could continue to grow but it could also go down in value, as with any investment. If you want to change the funds you're invested in, please go to the 'Manage your pension' page and select Fund details.
Why would I choose this option?
If you don't want, or need, to take any of your pension savings now, you can leave them where they are.
There are various reasons why this option might be right for you including not enough in your pension fund for the retirement income you need or, simply not yet being ready to call it quits at work.
How does it work?
Your pension plan will continue as before, with your money staying invested. You might still be able to pay in to it, which also means any contributions from your employer can continue too.
It's a good idea to regularly review your fund choices to make sure they're still the best option for you.
When the time is right, your pension savings will be waiting for you to draw upon.
You should bear in mind that, as with any investment, the value of your pension pot could go down as well as up, and you may get back less than you originally invested.
Good to know
You don't have to fully retire to start claiming your pension savings. In fact, more and more people are choosing to take their pension savings gradually while they scale down their work hours.
So, from the age of 55, there is an option to access your pension savings and ease into retirement gently, but don't forget you need to make sure that you have enough to last for the whole of your retirement. You can retire earlier than age 55 if you are in ill health or have a protected retirement age. This may be relevant to you if you were employed in certain (special or hazardous) occupations or were a member of an occupational pension scheme which gives you the right to take pension benefits earlier. Please refer to your policy/scheme documentation or contact us if you are unsure.
What other things do I need to think about?
Leaving your money where it is for the time being is absolutely fine, but you will need to consider a few things.
When you start a pension plan, you’ll have estimated a date for your retirement. If your plans have changed, you’ll need to let your pension provider know so they can make sure they contact you at the right time with information to support your decision making. This is especially important if you are invested in a Lifestyle strategy which automatically de-risks your pension savings as you approach your selected retirement date. If you don't inform your pension provider this may mean your pension savings are invested in funds that have a lower level or risk and less opportunity for growth earlier than would otherwise normally be the case.
Many pension plans will effectively close when you reach the age of 75. This means you won’t be able to make payments and it’s likely you’ll be required to take all your retirement savings out. It’s certainly worth bearing this in mind.
Some pension plans have a maximum age written into the contract giving you a deadline to make your decision about how to use your pension savings. For Zurich pension plans, this is usually age 75.
Made up your mind?
If you think you want to leave your money invested, please don't hesitate to get in touch. Our team will be happy to help.
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