Retiring is a major life change, and you need to take some time to prepare. The information below will help you get everything ready for a smooth transition to retired life.
One year before your retirement date
- Your retirement may not be linear. You may choose to work part time and take some of your benefits from other pension pots you might have, or you may want to carry on working past your Normal Retirement Age. These are important decisions, and your choices will depend on your individual circumstances. Please note that you cannot take partial benefits from your Santander (UK) pension if you decide to work part time.
- Make sure you have all the information you need, read Planning your retirement for information on early and late retirement and things you need to know if you want to carry on working.
- Choosing a retirement date a year before you plan to retire gives you plenty of time to get everything together and make some plans.
- You might have a number of different pension pots across various employers and private saving. Gather together all the information you have about how much money you’ve saved and what you may be entitled to.
- If you’ve lost track of old pensions the Government’s Pension Tracing Service can help.
- You may also be entitled to a State Pension, you can check your eligibility on gov.uk.
Six months before your retirement date
- Decide how you want to take your benefits.
- Your Santander (UK) pension provides an income in retirement for life. You can choose to take a lump sum out of that, reducing your monthly income. You can take up to 25% of your total pension benefits as a lump sum when you first retire, of which up to £268,275 is usually tax free. In April 2024 the government introduced the Lump Sum Allowance, which may mean you incur a tax charge on some of your lump sum. Read about the Lump Sum Allowance for more information.
- Read more about taking a cash lump sum on the What you could get at retirement page.
- Most members can run their own retirement quotes on the member portal. Just log in and visit the ‘Benefit Quotation’ section. Choose ‘retirement quotation for scheme benefits only’ and put your expected retirement date in. You will see two options, ‘full pension’ and ‘reduced pension plus cash lump sum’. You can read more about these options on the What you could get at retirement page. A small number of members can't use the member portal to run retirement quotes and will need to contact the Scheme administrator. Further information is available in the member portal.
- You may also be able to transfer some or all of your benefits to another Scheme, this could give you greater flexibility over how you access your pension benefits, for example, transferring your pension benefits into cash and taking it in a series of large payments known as drawdown. However, you may also lose some valuable benefits such as annual pension increases in retirement and a pension for your loved ones after you die. Read the Transferring your benefits out of the Scheme section for more information.
Three months before your retirement date
- Request a formal quotation.
- You can do this online via the member portal, or you can contact the administrator to request your quotation. The administrator will prepare your formal quotation.
- If you submit your formal quotation request via the portal, it can be sent to your portal mailbox and you’ll receive an email letting you know it is available. You can also choose to receive a full copy by email or in the post. Please make sure your address details are up to date before you submit your request.
- If you are registered on the member portal, you’ll be able to track the progress of your request in the online case tracker.
- If you live in the UK, you can submit your retirement request online. Once you’ve received your formal quotation, and you’re happy that it reflects the decision you’ve made about how much to take as a cash lump sum, you can choose to ‘Take My Benefits’ in the online case tracker. You can then upload your confirmation form and any other documents required to the member portal and complete your retirement request online.
Need some help?
Our Pension Decision Service (PDS) can help you decide which option to take. The PDS can provide you with helpful information and generic guidance. Watch this video for more information about how the PDS can help you. You will also receive some further information about the service when you request a retirement quote.
Read the transcript
At Mercer, we know how hard you have worked to save for your pension.
These days, there are so many different ways to take your pension income, and it’s important to make the right choice as the decision you make now is likely to have an impact on the rest of your life.
You have some important decisions to make, and whether you find planning your retirement daunting, or exciting, what’s most important is that you make the right choice for you.
Through your pension scheme, you have access to Mercer’s Pension Decision Service which provides guidance to support you in making the right retirement decision for you and your family.
At Mercer, we have dedicated retirement relationship managers on hand to support you with making your decision on how to take your benefits. Your retirement relationship manager will talk you through your pension options, build your confidence, and develop your knowledge to help you make the right decision.
Details of how to get in touch are included in your retirement pack. Reach out to our Pension Decision Team and relax in the knowledge that you have made an informed decision. Spend your retirement doing exactly what you want to do.
Mercer private wealth. To us, it’s personal.
Getting financial advice
Neither Gallagher, nor Santander UK plc, nor the Scheme Trustees can give you advice about what you should do with your pension benefits.
If you would like personalised advice about how to take your pension, tax planning or leaving money to your dependants, you should think about speaking to a qualified independent financial adviser who is regulated by the Financial Conduct Authority (FCA) and is on the FCA’s register of authorised firms.
The government’s MoneyHelper website has a guide to finding a financial adviser and a directory of financial advisers who can give advice on pensions. All the advisers in the MoneyHelper directory are regulated by the FCA.
Alternatively, you can look at the Personal Finance Society's What we do for the public section. This includes a directory of independent financial advisers. You can filter the advisers to find those that specialise in retirement planning.