We are often asked how long before retirement should I start thinking about pensions? I think that a sensible timeframe is to start to gather information up to five years before retirement. This will include going to DWP website and asking for a forecast of State pensions using form BR19 as well as making sure that all other pension providers have an up to date address – really important when it comes to old company schemes.
The time to really start to look around is about twelve months before retirement. It is at this point that you will learn a whole new vocabulary – guantee periods – widow’s pensions, capital protection etc etc. Take your time – think about the options – make sure you understand the implications. Remember you can only buy an annuity once – so the message is get it right. Look at a variety of quotations – quotes can be gained from www.annuitydirect.co.uk - the service is free and you can run as many quotes as you like as often as you like.
Annuity Direct Website
Presumably the answer to “We are often asked how long before retirement should I start thinking about pensions?” is about 40 years (or more via stakeholder).
Whereas your question is more to do with when to start considering how to take the income from the pension.
In that five year run up to retirement, people should also be considering the funds in which their pension is invested (assuming its not a final salary scheme).
Comment by Tim — February 26, 2010 @ 5:25 pm |