Britons urged to snap up 'free benefits' in their workplace pension before they retire
The government has announced new plans to extend legislation, so workplace schemes will give employees options around their pension pots - but there are plenty of benefits to be had now
Savers are being urged to take advantage of the free benefits, help and additions available through their pension schemes before they retire.
Many Britons nearing retirement may be overlooking the added perks that come with their workplace or government pensions. Given the importance of every penny in later life, missing out on this free assistance could have significant consequences.
The government has revealed plans to broaden legislation, enabling workplace schemes to offer employees more choices regarding their pension pots.
Some companies are already taking the initiative, with experts predicting that providers will collaborate with external firms to offer a wider range of products beyond retirement age.
Workplace pensions currently provide free assistance, which can include anything from basic information packs to subsidised financial advice, depending on the scheme.
Some schemes may also invite savers to participate in workshops, webinars and seminars to educate them on how to manage their finances effectively during retirement.
Personalised coaching and individual financial coaches may also be available to provide tailored advice on complex pension and retirement planning scenarios.
Clare Stinton, Head of Workplace Saving Analysis at Hargreaves Lansdown, highlighted that their scheme offers one-on-one consultations throughout the savings journey.
Interactive tools such as free pension calculators and drawdown models are widely available, providing savvy savers with the chance to assess their retirement savings progress and explore various retirement income structures. Some schemes, like Aviva, may also offer tax calculators to help savers understand potential liabilities under different drawdown options.
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Workplace pension schemes commonly provide 'wake-up packs' to members when they reach 50, 55 and 60 years of age, as well as a few months prior to their chosen retirement age. These informative packs outline the options available to savers and may include warnings if investment adjustments are needed ahead of retirement.
Even for those without a workplace pension, or who are enrolled in a scheme that doesn't offer free financial advice and tools, there's a £500 allowance available. Savers can withdraw this amount from their pension tax-free to cover the cost of financial advice.
This tax-free withdrawal can be made once per tax year and up to three times during a person's lifetime.
The government also provides free pension assistance through Pension Wise, a service accessible to individuals aged 50 and over, offering guidance on defined pension pots. Those under 50 or with a final salary pension can seek help via the MoneyHelper service.
