Your annual update is on its way this September! It’s your window into understanding your pension and helping you to prepare for the future. It includes information about your pension, such as your contributions, investment performance, and projected benefits. It's a snapshot of your future financial well-being and a valuable tool for planning your retirement journey. But don't forget, if you want to see how your money is building up and what you might get at retirement, simply log into your Pension Account for an update.
Changes to your update since last year
Due to recent changes in the law, the assumptions used to calculate your projected pension at retirement have changed. As a result, your update may look slightly different from last year. In addition, this year it’s been assumed that you’ll use your entire Pension Account to provide an income, rather than taking 25% as tax-free cash. But you still have the option to take a tax-free cash lump sum if you want to. Full details of the assumptions used this year can be found on the Atlas Master Trust website.
Three actions you should take
- Read your update: Take the time to review your annual update to gain an understanding of your contributions, investment performance, and projected benefits. Looking at your numbers can help you see where you are now and where you’re likely to be in the future.
- Use the retirement planning tool: Not sure what you’ll need in the future? Take a look at the Retirement Living Standards set out by the Pensions and Lifetime Savings Association. These standards outline three levels of retirement living – minimum, moderate, and comfortable – based on annual income. They can help you to understand the amount you need for the type of lifestyle you want for life after work. Use this and the retirement tool on your online account to see if your current contributions and investment choices align with your retirement goals.
- Take charge of your future: Reviewing your annual update isn’t just about the numbers. It’s about feeling confident you have the knowledge you need to make informed decisions about your pension. Check your numbers, review your retirement goals and make the changes you need to improve your future. Make sure you open your diary and book in a time in 6 months to check in and do another review.