thepeoplespension.co.uk/all-your-options

Thepeoplespension.co.uk aims to provide members with a range of options regarding their pension, encompassing how they manage it, how it’s invested, and how they eventually access their savings. While the core framework is a workplace pension, the platform offers flexibility within this structure. Members can choose their investment path, consolidate multiple pension pots, and explore various avenues for withdrawing their funds upon retirement. This focus on “all your options” empowers individuals to tailor their pension journey to their specific needs and financial goals, albeit within the confines of a conventional pension scheme.

Investment Choices and Profiles

One of the primary areas where members have options is how their pension funds are invested.

• Risk-Based Profiles: The website highlights three distinct investment profiles: ‘cautious,’ ‘balanced,’ and ‘adventurous’. These are designed to align with different risk appetites, from those who prefer stability to those seeking higher potential returns through greater market exposure.
• Default Fund Options: While members can choose, there is typically a default fund for those who do not actively make a selection. This default is often a diversified, balanced fund designed to be suitable for most savers.
• Lifecycle Approach: Many pension schemes, including potentially The People’s Pension, might offer a ‘lifestyle’ or ‘lifecycle’ investment approach, where the investment mix automatically de-risks as a member approaches retirement, gradually shifting from higher-risk to lower-risk assets.
• Ethical/ESG Screening (Potential): While not explicitly stated on the homepage for Sharia-compliance, some large pension providers offer ethical or ESG (Environmental, Social, and Governance) screened funds. Members would need to investigate if such options are available and if they align with their specific ethical criteria beyond conventional ESG.
• Review and Change Options: Members typically have the flexibility to review their chosen investment profile and switch between options if their risk appetite or financial circumstances change over time, all accessible through their online account.

Managing Your Pension Pot

Beyond investment choices, members have options in how they manage the logistics of their pension.

• Pension Consolidation: A significant option offered is the ability to “Combine your pensions” by transferring old pension pots from previous employers into The People’s Pension. This simplifies management and provides a single, consolidated view.
• Online Account Management: Members can choose to manage their pension entirely online via thepeoplespension.co.uk/your-online-account/ or through the mobile app. This digital access provides control over personal details, communication preferences, and investment choices.
• Contribution Flexibility (Limited): While auto-enrolment sets minimum contributions, members may have options to increase their contributions voluntarily, either as a percentage of salary or as lump sum payments, to boost their retirement savings.
• Opting Out (thepeoplespension.co.uk/opt-out): Although discouraged, employees who are auto-enrolled have the option to opt out of the pension scheme. The website provides information on this process, ensuring individuals are aware of their rights, even if opting out means losing employer contributions.
• Updating Personal Details: Members have the option to update their personal information, contact details, and nomination of beneficiaries through their online account, ensuring their pension records are accurate and up-to-date.

Accessing Your Pension Money (Retirement Options)

Perhaps the most crucial set of options pertains to how members can access their savings once they reach retirement age.

• Flexible Access (Pension Freedoms): In the UK, pension freedoms allow individuals aged 55 and over (rising to 57 from 2028) to access their defined contribution pensions flexibly. This includes options like taking a tax-free lump sum, flexible drawdown, or purchasing an annuity.
• Drawdown Options: Members can choose to take a regular income from their pension fund while the rest remains invested, known as flexible drawdown. This allows the remaining fund to continue growing, but it also carries investment risk.
• Annuity Purchase: Another option is to use the pension fund to purchase an annuity, which provides a guaranteed income for life or a specified period. This offers certainty but less flexibility.
• Lump Sum Withdrawal: Members can also choose to take their entire pension pot as a single lump sum. The first 25% is usually tax-free, with the remaining 75% subject to income tax.
• Guidance and Support: Thepeoplespension.co.uk offers a “Retirement planning guide” (thepeoplespension.co.uk/retirement/retirement-planning/get-ready-for-retirement/) and “Accessing your pension money” sections to help members understand these complex options and make informed decisions about their retirement income.