partnership
Retiring
How big will my pension be?
The amount of your pension will depend on:
- the amount of money that both you and your employer have contributed each month
- the investment returns that your chosen fund (or funds) achieved
- the annuity rate which is used to convert your pension pot into a monthly income when you decide to take your partnership fund as a pension.
It is important that you give your pension fund a regular ‘health check’ over the years to make sure you are on track to get the sort of retirement income you want. Remember that contributions made while you are young are going to have more years to grow with investment returns.
When can I draw my pension?
Under current legislation, you can draw your partnership pension at any time between the ages of 50 (55 from 2010) and 75. You choose the timing to fit in with your personal circumstances. You also decide whether you want to provide a pension after your death for your dependants. When you draw your pension, you can choose to take up to 25% of your pension pot as a tax-free lump sum, subject to the Lifetime Allowance.
What happens when I retire and how do I get my pension?
Remember that you choose when you start to draw your pension. It does not have to be when you ‘retire’ from the Civil Service; you can draw your pension at any age from 50 (55 from 2010) to 75. However, you may want your pension to start as soon as your Civil Service pay finishes. When you come to retire, you will need to turn your pension pot into an income for life – a pension. This is known as an annuity. For more information about buying an annuity, see the ‘partnership pension account’ booklet.
Can I carry on working after I draw my pension?
Yes. Drawing your pension does not have to be linked to retiring from work.
