Frequently Asked Questions

In the UK, there are three main types of pensions: State Pensions, Workplace Pensions, and Personal Pensions. The State Pension is a regular payment from the government that you can claim when you reach State Pension age, provided you’ve paid enough National Insurance contributions. Workplace pensions are usually arranged by employers, while personal pensions are set up by individuals. Each type of pension comes with its own rules, benefits, and tax implications.

The age you can start claiming your pension varies depending on the type of pension you have. The State Pension age is currently 66, but this is rising to 67 by 2028. Workplace and Private Pensions often allow you to start accessing your pension savings from the age of 55 (rising to 57 by 2028), though you may decide to defer taking your pension to receive larger payments later.

The full new State Pension amount is £230.25 per week (as of the 2025/26 tax year). However, the amount you receive depends on your National Insurance record. You will need 35 qualifying years to get the full amount. If you have fewer qualifying years, your State Pension will be lower. If you want to check your forecast, you can use the government’s pension checker tool.

When it comes to thinking about retirement one of the first thoughts is how much is in your pension pot or more importantly where are they located. After spending your entire working life in different jobs it’s pretty normal to forget where your pension is or to even have lost them. If you think you have lost a pension, you’ll need to contact each of your previous employers to find out who your scheme was with. You can use the pension tracing service to help you find them. Or you can get in touch with us, and we’ll find them for you.

Pension Drawdown is a method of withdrawing funds from your pension to supplement your income during retirement. To access your money in this way, you must be 55 years or older. For more information, visit our Pension Drawdown and Annuities page.

Your Defined Contribution pension is portable, meaning you can transfer it to your new employer’s scheme or a personal pension without losing any benefits.

Yes. Defined Contribution pensions can be combined with other pensions of this type. By doing so, you can simplify management, potentially reduce your fees, and make retirement planning easier. Take a look at our Pension Consolidation page for more information.

Yes, thanks to Pension Freedoms, you can typically access your pension from age 55 (rising to 57 in 2028). Early access might incur penalties and affect your long-term savings, so it’s advisable to plan carefully. Read our Pension Freedoms blog for more information.

Contributions to your pension receive tax relief, and the investment growth is tax-free. However, there may be tax implications when you start to withdraw from your pension pot. For more details about the 2025/2026 UK Tax Allowances, read our free guide here.

If you’ve come from one of the industries mentioned in the previous question, or have worked in the public sector, there’s a good chance you have a Final Salary Pension. Your employer, pension provider or an Independent Financial Adviser such as Joslin Rhodes will be able to clear up which scheme you’re in.

If you’re already in retirement when you die, your pension will be passed on to your spouse, civil partner, or other dependent — but only if your pension includes spousal benefits. Even then, it will generally be reduced by as much as 50%.

If you pass away before you take your pension, many schemes will pay out a lump sum, which can be tax-free if you die before age 75. Your spouse, partner, or dependants can also potentially receive a taxable ‘survivor’s pension.’

Enough for what? How do you want your retirement to look? Before you consider taking advice on your Pension options — or even thinking about your scheme — you need to think about your retirement lifestyle. Knowing what you’ll be doing helps answer whether you’ve enough or not.

Defined Benefit (DB), often referred to as ‘Final Salary’ or ‘career average’ pensions, provide a guaranteed income in retirement based on your salary and the number of years you’ve worked for your employer. Although you still need to make personal contributions to a DB pension, the annual pension income you receive is not based on how much you have paid in. As they are guaranteed for as long as you live, DB pension schemes can provide more security. However, few employers still offer them to new employees.

Need advice on your current Defined Benefit Plan or looking to set one up? Get in touch today.

Final Salary Pensions are commonly found in both the public and private sector. Traditionally, they were common within industries such as oil, gas, chemicals and engineering. However, in the modern world, they are more common in public sector roles such as teachers, NHS workers, emergency services, the armed forces and many others.

There are many members in a Final Salary Pension scheme. Generally speaking, each member pays a percentage to the scheme. Some Final Salary schemes don’t request member contributions, but these are less common. Your employer then subsidises — sometimes paying as much as three times the amount you put in or more.

Generally speaking, Final Salary Pensions are very good as they provide a secure income for life which is risk-free. You don’t need to manage anything, and they generally increase in value every year typically in line with inflation. However, like any pension scheme, it has its advantages and disadvantages.

Advantages:

• Guaranteed – payments continue throughout your life and are protected by the state or the Pension Protection Fund (PPF).

• Simple – you know how much you’re going to get every month, like a wage.

• Subsidised – you’ll likely get a lot more back than you paid in.

Disadvantages:

• Inflexible – once you’ve set what you’re getting, you can’t change this and take more or less at a later date.

• Hard-wired – if it comes with spousal benefits you can’t turn these off, even if you don’t have a spouse or partner.

• Dies with you or your spouse – when you die the payments stop, so generally no money is passed to children. However, if you have children under age 18, then benefits can be payable to them upon the member’s death.

Transferring from your Final Salary Pension can give you more options, but it’s not for everyone. Just because a colleague or family member has done it doesn’t mean it’s right for you.

You should speak with a Financial Adviser for the best possible advice on whether transferring or remaining in the scheme is the correct decision for you.

Generally speaking, the default decision is that remaining in the scheme is most appropriate.

Looking for the Pension Transfer Gold Standard can help you recognise good practice and ethical and professional standards when looking for pension transfer advice. It’s a series of nine principles that set out a robust and comprehensive code of practice for advising on Defined Benefit/Final Salary Pensions, above standard industry regulations set by the UK financial services regulator, the Financial Conduct Authority (FCA).

Yes, it’s possible, but it’s a major decision that requires professional advice. As FCA-authorised Financial Advisers, we can assess your personal situation and explain all the risks to you so that you can make an informed decision as to whether you want to move your pension or not.

Not necessarily. Turning 55 gives you access to your pension under UK pension freedoms, but whether to transfer your investments or drawdown depends on your long-term Financial Plan. You can continue growing your pension pot so there’s potentially more money to enjoy later.

It really depends on your personal circumstances. Taking the lump sum can give you flexibility and funds for immediate needs, but it also reduces your remaining pension pot and the funds you’ll have further down the line. So, before many any big decisions about Pension Drawdown, we’d recommend speaking with one of our UK pension specialists who can help you weigh up the benefits and the risks.

A common reason for looking to take advice about your Defined Benefit (DB) scheme is the possibility of greater flexibility. If you’ve got a Final Salary Pension, in most cases you can opt to transfer it to a Defined Contribution (DC) scheme, which gives you the option to move your pension into Drawdown. However, giving up a secure income requires careful consideration. Too much freedom isn’t always a good thing. If you use that flexibility to overspend, your pot could run out quicker than expected. There are also investment risks and tax implications if you take large amounts from a drawdown pension. Additionally, there are investment and advice charges that aren’t payable in a DB scheme. Another common reason for transferring to access drawdown is the option for a death lump sum. Under current rules, if you die before you’re 75, your pot will be passed on tax-free. If you’re over 75, it can be passed on as a lump sum that may be taxed at the heirs’ personal income tax rate. To find out more, visit our Final Salary Transfer Advice page here.

Buying an Annuity at 55 might not be the best option, as annuity rates increase with age. Other options, like income drawdown, may offer more flexibility. However, if you want a guaranteed income for life, an annuity could be suitable. If you’re unsure though, we can help you explore all your options and decide what’s best.

Yes, many people choose income drawdown, meaning your pension stays invested while still allowing flexible withdrawals. This can be a good option if you want to continue growing your savings while still taking some income.

Under current UK taxation rules, you can withdraw up to 25% of your pension tax-free. Any further withdrawals are taxed as income, so it’s important to plan carefully to avoid paying more tax than necessary.

Your pension can usually be passed on to your beneficiaries. Defined Contribution Pensions can be left as a lump sum or income, often free of tax if you die before 75

In many cases, yes. But it really depends on the type of pension and your overall retirement goals. Our expert Financial Advisers can talk you through the process of combining your pensions as well as take a look at the various features and benefits of your current pensions to make sure it’s in your best interest to consolidate. Find out more about our Pension Consolidation Services here.

Pension Consolidation is when you combine multiple pensions into one plan. It can make managing your retirement savings simpler and potentially reduce your fees, but it’s not without its risks. We always recommend that you speak with a qualified professional before making any major changes with your pensions. Take a look here to find out about our Pension Consolidation Services.

Definitely not. It depends on your individual circumstances. Consolidation may not be suitable if you have certain benefits, like a guaranteed income from a Defined Benefit pension, or if there are exit fees on your current pensions. Download our Pension Consolidation Guide to find out more.

Combining your pensions can make them easier to manage, reduce costs, and give you a clearer view of your retirement savings. Read more in our free Pension Consolidation guide.

Yes, potential risks include losing valuable benefits, paying exit fees, or moving to a plan with higher charges. At Joslin Rhodes, we’ll review your options carefully to ensure consolidation is a smart move for you.