Getting your pension ready
for your retirement

Transition Planning

Standardised pre-retirement approaches are no longer suitable. Everybody's retirement will be different and a more personalised approach is needed to maximise your retirement objectives.

Effective transition planning can deliver the personalised approach by matching your pension investments to your likely retirement income solution. We achieve this with our clients by constructing a personalised retirement model (see example below) where we can show virtually any scenario you may wish to consider (e.g. retiring early, taking lump sums). Importantly, the modelling process allows us to establish the most appropriate retirement income solution for your needs and how best to invest to maximise your selection.

Retirement Model Example.jpg

The information below provides a brief overview of suitable transition strategies:

Annuity - De-risking your pension investments. 

  • If you plan to buy an annuity at retirement, you should consider de-risking your pension investments.  This would involve reducing the amount of equity investments that you hold and increasing the amount of lower risk investments.

Flexi-Access Drawdown - Maximising your investment strategy.

  • Pension drawdown involves keeping your pension fund invested and taking an income directly from your fund. Your investment choices need to be tailored to your individual circumstances and your need for cash and income in retirement (as driven by your retirement model).

  • If equity investments are not your current main pension assets, we would recommend you seek immediate investment advice.

  • If you are looking to take tax-free cash or a larger lump sum, you should consider de-risking (see above) the amount of cash you are planning to take.

Cash-Out Options (available from April 2015)

  • Similar to annuities, you are looking to de-risk your pension investments so that you do not face any nasty surprises just before taking your pension benefits.


“It is estimated 80-90% of people with DC pensions are invested in the default fund option. Typically, default funds are predicated on you buying an annuity at retirement and will therefore de-risk your pension investments as you approach retirement. It is now forecast that fewer than 40% of people will buy an annuity at retirement. That means over half are heading in the wrong direction - if you think you might be one of them, seek help, and quickly!”

- Intelligent Pensions


Try our 'annuity or not'

Will an annuity be right for you?

Try our Retirement
Income Forecaster

What pension income will you get?

Book an online
consultation today

Speak to an expert

Get in touch with
Intelligent Pensions

Contact us