Retiring from your employer
Retiring from your employer
Preparing to make decisions will give you the best chance of having enough to live on in retirement. It’s also important that you keep playing an active role in your money matters after you leave your employer
Your two important retirement savings decisions
Should I retire now or later?
What type of pension is right for me?
Where can I find out how much I’ve saved with Alexforbes?
Sign up or log in to our website to get this information.
You can also visit the app store to download our app.
Find out more about your retirement savings options as you prepare to retire from your employer
For information that’s specific to your fund or employer’s benefits find out more
Why consider financial advice?
The information on this site is designed to help you make informed decisions, as you get ready to retire. Once they’re informed, many people need or rely on a financial adviser to help them make the choices that are right for them based on their personal circumstances.
Is someone you know retiring soon?
Email them a link to share this information that will also help them with the decisions they need to make about their retirement savings, as they prepare to retire.
Other useful information about your retirement fund
When you’re no longer earning a salary at the end of your working life, you can use your savings in your retirement fund to buy a pension that will give you regular income. Your employer has provided you with a provident or pension fund.
How does a retirement fund work?
Every month, you, your employer or both make contributions to your fund.
These contributions are saved towards your retirement. You can use your retirement savings to buy a pension that will give you a regular income in retirement.
How much your pension will be depends on:
how much you or your employer contribute during your working life
how investments have performed
whether you keep your retirement savings invested instead of taking them in cash when you change jobs
the cost of buying a pension when you retire
A benefit statement shows:
how much you’ve saved so far for retirement
the pension you can expect based on the information we have about you
Here’s an explanation of your benefit statement.
View your benefit statement by logging onto the Alexforbes website or by downloading the AF app on the Apple App Site or the Google Play Store.
The amount of money you need to save for retirement will depend on what your expenses will be during retirement. Generally, you should try to save enough money to cover your monthly expenses for as long as you or your spouse, if you have one, expect to live after you retire. It’s important to keep in mind that people often live much longer than they think they will, after they retire.
One way to figure out what your expenses will be and whether you’ve saved enough to cover those expenses is to work through the guided journey in the My Retirement Picture tool. One of the benefits of the tool is that it helps you to explore the adjustments you can make if you find that your expected pension won’t be enough to cover the expenses you think that you’ll have.
Watch this short introduction video which explains how My Retirement Picture works.
Getting started with My Retirement Picture
To get started, you’ll need to know:
How much you have already saved towards your retirement.
You can find the amount you’ve saved with Alexforbes by logging on to our website or by downloading the Alexforbes app free from the app store on your phone
How much you are saving towards your retirement each month.
If you don’t know how much you’re saving, you can find the information on your payslip.
You can retire early on the grounds of ill-health, if you:
become too sick to carry on working
AND
have not reached the fund’s normal retirement date BUT don’t qualify for a disability benefit
AND
are totally and permanently unable to do your job
The benefit you get will be the value of your retirement savings in the fund.
A financial adviser can help you to make a financial decision that is right for you based on your individual circumstances. Financial advisers charge fees that are based on the financial products they help you select. For example, if a financial adviser helps you to use your retirement savings to buy a flexible pension or a guaranteed pension, you will be charged a fee.
Fees can be charged up front when you buy a pension and on an ongoing basis if you choose to receive ongoing advice. The up-front fee a financial adviser charges is limited to 1.5% + Vat of the amount you use to buy a pension, but the actual amount is negotiated between you and your financial adviser. The fees are usually deducted from the amount you use to buy a pension.
Please contact our My Money Matters Centre, where you can receive retirement benefit counselling and advice from our qualified financial consultants.
If you need to start receiving your pension in the month following your retirement date, you will need to meet with a financial adviser at least three months before your retirement date.
The administration processes including completing and signing forms that are necessary for you to start receiving a pension take time to do, so it is a good idea to start early.
Your retirement savings can be divided between flexible pensions (living annuities) and guaranteed pensions (life annuities). There may be up-front and ongoing fees but the amounts will differ depending on the type of pension you choose and what is agreed on by you and your financial adviser.
In the case of a flexible pension, there will be investment fees on your investment portfolios. Investment portfolio fees are deducted from the value of your investments and won’t be shown separately on your statements. An administration fee is also charged for the administration involved to pay your pension to you and for preparing and submitting your tax information.