When savers are approaching retirement
In the six years before your target retirement year, we’ll automatically prepare your savings for when you cash them in on retirement.
We’ll gradually start to move you into investments that are generally considered to be less risky.
Then, in the last three years, we’ll move your savings into cash so you can take your benefits and spend them any way you like.
When you retire, your fund will be 100% invested in cash, and will remain in cash until you tell us what you want to do with your pension savings. Cash isn't suitable for long-term investing as inflation can reduce the spending power of your savings, meaning you can buy less.
If you choose to cash in your benefits all at once, you can normally take 25% of your pension pot as tax-free cash. The remainder will be subject to income tax at your marginal rate. This is based on our understanding of current taxation law and HMRC practice, which may change.