Making it happen

Retirement procedures – what you need to do.

There are some administrative steps to go through to set up your pension.

Retirement usually means leaving the service of your employer so you need to tell your employer and provide at least as much notice as is required in your contract of employment.

You need to contact the administrator, XPS Administration, to get the retirement process started. They will provide you with an options pack that sets out what you can do with your Retirement Account. Your pack will also include details about Smart Pension.

Let the administrator, XPS Administration, know what you have decided. If you select Smart Pension, they will issue you with a member pack and then create a member account for you, ready for the transfer of your pension savings.

If you want to transfer your money to another pension provider, please be aware that XPS Administration may need to carry out a couple of checks before the payment can be made. Some schemes are deemed ‘safe’ – for example, authorised Master Trusts like Smart Pension – and won’t require any additional checks, but others may require the administrator to look for specific warning signs of a pension scam or high-risk investment – known as red or amber flags. A red flag means the Trustees can stop the transfer from going ahead – thereby overriding your statutory right to a transfer. An amber flag means the transfer can only go ahead if you can show you’ve received expert scams guidance from MoneyHelper, the government’s free money and pensions guidance service.

You are recommended to use an independent financial adviser who can help you make the best decision for your circumstances. Please make sure you understand any costs of advice that may apply.

Once you have made your decision, and completed the relevant forms, the administrator will transfer the money to Smart Pension or your chosen alternative pension provider. If you have chosen an annuity, the administrators would pay any cash sum to you before the transfer. The Trustees will then cease to have a liability and you would look to the pension provider to pay the pension in accordance with the terms you have selected.