Millions of people will now be given FREE pension advice – are you eligible?
IF you're 50 or over and about to access your pension, you might want to get some guidance from a professional first.
The Government service, Pension Wise, will now be offering a free guidance session for retirees looking to take money out of their pension pot.
How can I get free advice?
Free guidance has been available to those approaching retirement for a while, but the Stronger Nudge campaign comes as part of a drive in increase take-up of the service.
It is aiming to encourage more people to take advice on their savings when they reach retirement age.
To qualify for the scheme, you must be aged 50 or over and have a UK-based workplace or private pension pot.
Your pension provider must let you know that you are being offered such service - and you do have the choice not to take the advice (though it's not recommended you do this).
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Pension Freedoms were introduced in 2015 and gave people more control over their retirement savings, but many people are unsure what to do with their pension once they stop working.
Becky O'Connor, head of pensions at interactive investor, said the scheme should help people understand their options.
"It is a useful guidance service for hundreds of people who approach the age they can access their private or workplace pension savings every year, but who are not sure what to do with it at that point," she said.
However, she points out that the service doesn't offered tailored advice, so if you want more specific help you might need to speak to a financial adviser.
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The service also won't be available to those with a defined benefit pension which is based on your final salary and years of service rather than your own contributions.
That's because these schemes tend to be more complicated and can have lucrative benefits that you could lose by moving your money elsewhere.
If you're not sure who your pension firm is, check you latest pension statement or ask your company's HR department if it's a workplace scheme.
You can also call Pension Wise on 0800 138 3944 from Monday to Friday between 8am and 8pm or use the
You can rebook another free guidance session if your pension circumstances change or you want to discuss a family member's or friend's matter.
To discuss someone else's pension, you need to have written consent or show proof of a power of attorney.
What do I need to bring?
Before you head to your appointment, make sure you have all the information needed on each pension scheme that you have.
If you lost track of your pension schemes over the years, you can use the , which will help you locate any lost pots.
You should also have an estimate of how much state pension you might get.
The state pension increases each year to keep up with the rise in living costs - this is known as the triple lock.
The state pension for the 2022-23 tax year is £185.15 a week. But bear in mind that this is the maximum amount you can get and will depend on how many years you made National Insurance (NI) contributions.
We previously explained everything you need to know about the state pensions, how much you earn, at what age and how you claim it.
Why is it important to get guidance on your pension?
There are many pension scams out there, and guidance can help you to keep your eyes open when transferring money out.
It can also help you plan to make sure your money lasts through retirement.
There are lots of different options, such as taking out an annuity (which gives you a guaranteed income for life) or keeping your cash invested.
Pension schemes come with different limits and rules and it can be very confusing to try and figure them out on you own.
O'Connor said: "Many retirees cannot afford or may not want to seek independent financial advice.
"And there remains a risk that in not knowing what to do, people make decision that put their retirements at risk, such as transferring their pension pot to cash rather than leaving it invested for growth.
"So this service is really crucial, can help people save and make more money to put towards their retirement and take-up does need to improve."
What other help is available?
Many people may not even realise they are saving into a pension.
But under auto-enrolment rules, once you earn a certain amount, you are automatically enlisted in your company pension scheme.
It is compulsory for an employer to put any staff between the age of 22 and state pension age, 55, and are earning more than £10,000, to enrol them in a pension scheme.
The scheme was launched in a bid to encourage more people to save for the future, as millions were chronically under-prepared for retirement.
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Both employer and worker pay contribute to the pension pot, and some workplaces are more generous than others.
We've previously looked at pension auto-enrolment and how much you could save.
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