Annuity planning timetable
As the time draws closer to your retirement, it's a good idea to check with your pension provider and/or chosen annuity provider to see how long things will take. There is normally a delay between buying your annuity and receiving your first payment from your pension fund.
These timings may help you draw up a plan of action to ensure you get the pension income that best suits your needs.
Timetable for turning your pension into income
12 months before, or earlier
Start thinking about what life will be like when you've retired. Consider topping up your pension and preparing for retirement. Our Retirement Calculator can help you see how close you are to meeting your financial goals.
Three to six months before
It's worth getting all your paperwork together and start looking at what options are available to you. You may want to ask your pension provider for a fund valuation - but bear in mind that this is likely to change by the time you actually retire.Eight to 10 weeks before
By now you should have a reasonable idea of what your options are. Make sure you ask your provider for a number of different annuity scenarios. This will allow you to see clearly what your options are and how much you could get, both today and in future years. The Open Market Option means you are free to shop around and choose who you purchase your annuity from. Annuity rates can vary considerably between providers and, even with one provider, the rates can differ accordingly to the annuity options you choose. The top provider for one set of options may not come out on top for another set. Decide which options best meet your needs and then call your provider to discuss your choices and ask for a quote. You may also want to speak to a financial adviser. Narrow down your options to a shortlist.Four to six weeks before
Six weeks before your actual retirement date you'll also receive a quotation pack from your pension provider. If you are moving pensions from different sources, you will need to apply four to eight weeks in advance of this date.Two to four weeks before
By now you are likely to have most of the information you need to choose your annuity. You might like to discuss your options with family or friends before making a final decision.It normally takes a few weeks between applying for your chosen quote and your pension fund being converted into an income, so make sure you have some funds set aside to cover any gap before your first payment.If your needs change or you change your mind, there is normally a 30-day cancellation period from the date your first quote is issued. Some companies may allow you to cancel right up to the last minute, but all being well you'll have the confidence to start enjoying your savings from your pension fund. The amount returned may be less if funded from another provider.
