Pensions can be a real mystery for many of us. Have we started saving early enough? Are our savings being invested safely? For many young people, it’s easier to just keep putting it off rather than start putting in.
Today is Pensions Awareness Day, created to help people understand how much they will need in the future and what they need to do to reach their saving goals.
If you're affected by cancer, thinking about pensions could be useful for many different reasons. Here are a few questions you might want to ask, and information about how to find the answers.
What kind of pension do I have?
Most people are entitled to a State Pension once they reach a certain age. This is a regular payment paid by the government. The age that you start getting the State Pension is rising. You can find out how much State Pension you have built up by calling the Future Pension Centre on 0345 3000 168.
Many people also have a private or personal pension. You can find out more about different types of private pension on the Macmillan website.
What if I need to stop working?
You may have to take time off work or stop working when you have cancer. If you stop working and paying into your pension, the final pension amount will be smaller. However, you may have insurance that continues to pay your contributions if you can’t work. You can talk to your employer, HR department or pension scheme manager for more information about your situation.
Can I access the money I’ve saved?
There are different ways of accessing your pension. This depends on the type of pension you have and your illness.
If you have or have had cancer, you may be able to retire early and claim your pension. If you have a life expectancy of less than 12 months, you may be able to get your pension as a one-off lump sum.
It’s important to speak to a financial adviser before deciding what’s best for you.
What happens to my pension if I die?
Your pension can be passed on to the people who you have chosen to inherit, but they may have to pay income tax or inheritance tax on this. Our financial guides can help you understand more about pensions and inheritance tax. You can call them for free on 0808 808 00 00.
Where can I find more information?
The government gives free guidance on private pensions through a scheme called Pension Wise. You can book an appointment with a pensions specialist by calling them for free on 0800 100 166. Our financial guides can also talk to you about pensions. You can speak to them for free on 0808 808 00 00.
Both Pension Wise and Macmillan will provide impartial advice, but they can’t recommend specific products or services. A professional financial adviser will be able to help make sure you get the highest income from your pension. Financial advisers charge for their services but many won’t charge for the first meeting.
Your family or friends may be able to recommend a financial adviser. Or you can search online. Make sure that the financial adviser is authorised by checking their information on the Financial Services Register.
If you would like more information, we have a booklet called Pensions. This is a guide to planning for and making the most of your retirement savings. It includes information on state, personal and company pensions.
We also have information about pensions on our website.
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We're with you every step of the way
The Macmillan team is here to help. Our cancer support specialists can answer your questions, offer support, or simply listen if you need a chat. Call us free on 0808 808 00 00.
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