What happens when I'm ready to retire?

The Scheme’s Normal Retirement Age (NRA) is 65; however you can retire anytime after age 55, which is the minimum age set by the Government.

If you are considering retiring before your NRA, you should contact the FDR Pension Scheme helpline who will provide you with the information you will need. You can find their details on the Contact us page.

There are many options available to you as a member of the DC Section of the Scheme. What you will be able to do will depend on the value of your Member Account when you retire; some of the options available to you are as follows:

  • an annuity: you can choose to take a traditional annuity, which will provide you with a regular income in retirement. you can also choose whether or not to provide benefits to your dependants in the event of your death
  • flexible drawdown: you can take lump sums from your Member Account as and when you need it, and leave the rest of your account invested
  • all as cash: you can, if you choose to, take the full amount of your Member Account as a one off lump sum. 25% of your Account will be paid tax free, and the rest will be taxed at the appropriate rate
  • a mixture: if you want the security of an income but the flexibility of taking cash out when you need it, you can take a mixture of all the options listed above
This list is not exhaustive and the options available to you when you retire may differ.

You can also find support to help you with financial decisions by visiting our managed retirement service or through our countdown to retirement page.
Pension Wise

To help people make the best decision for them, the Government introduced a requirement for free, impartial guidance to be offered to all members of when retiring from DC schemes like the FDR Limited Pension Scheme. This guidance, Pension Wise, was created with Citizens Advice and the Money Advice service, and is a free service available to all retiring members of DC pension schemes.

You can find out more about them at www.pensionwise.gov.uk

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