Getting started with retirement planning

Each year we issue annual benefit statements to LGPS members who are not yet receiving their pension. Annual benefit statements are designed to help you plan for your retirement.

If you’re no longer paying in, you may have already received your statement. If you’re still contributing to your LGPS pension, you’ll be issued a statement by 31 August.

Preparing for retirement is an essential part of financial planning, but if you haven’t started yet, you’re not alone. According to government research only 23% of people have an idea of how much they might need to live on in retirement.

If retirement seems like a long way off, you may find it hard to imagine a time when you’re no longer working. If you’re closer to retirement, you might find there’s so much to think about that it can easily become overwhelming.

The good news is that wherever you are in your savings journey, there lots of free tools and resources available to assist you to take stock of your current circumstances and make plans for the future. Here’s a selection of some you may wish to take a look at:

• The government’s ‘plan your retirement income: step by step’ walks you through all the considerations you may need to make in planning your retirement and contains links to further resources and information.
• If you’re between age 45 and 65, take a look at the government’s mid-life MOT website. You can use their tools to check the status of your work, health and money, and get an instant shortlist of resources tailored to your priorities.
• ‘My pension online’ has recently been upgraded to include a new retirement planning tool. This tool takes into account income from the LGPS pension you have built up and you can add in income.
• If you’re thinking of retiring from soon, take a look at the retirement section of our website. If you’re no longer paying in, see ‘taking your deferred pension’.
• Age UK has an excellent retirement guide to help you make all the appropriate considerations at retirement. This includes tips on how to trace old pensions, boost income and deal with debts.
• You can also get free money and pension advice from MoneyHelper. Their website is full of useful information to assist you in your retirement planning and you can book a pension advice appointment with them to discuss your options for free!

If you’re currently paying in and want to save more towards your retirement, you can do so either by making AVCs (Additional Voluntary Contributions) or APCs (Additional Pension Contributions). Both of these methods have different features and the one that is right for you will depend on your retirement goals and personal circumstances.

See ‘increasing your pension’ for a comparison table of AVCs and APCs as well as details on how to apply.

Before you make any decisions which could affect your finances, we recommend you get advice from an FCA (Financial Conduct Authority) registered financial advisor.

For more information, see ‘get help with a decision about your pension’.