It’s important to understand your pension is a long-term investment. Its value can go down as well as up and you could get back less than was paid in.

How pensions work

This video explains the basics of how pensions work:

Your pension investments: a quick intro

This video explains

  • Why people invest
  • The different types of investments
  • How to balance risk and return

Choosing investments

It's up to you how your plan is invested - and how involved you want to be.

You may decide to leave it to an expert and use a "ready-made" lifestyle profile. Or if you have the knowledge, time and confidence, you might decide to manage your investments yourself.

Your investment options

Responsible investing

There are many different approaches to this area - and if you're invested in the "Help me do it" option then it's possible that it's already investing responsibly. You can check by logging into your online account and seeing where your plan is invested.

If you'd like to learn more about the other approaches and options we offer, including avoiding harmful practices, focusing more on responsible companies or tapping into specific ethical, environmental or social themes, read our Responsible Investing guide on standardlife.co.uk 

Your options in retirement

You can normally access the money in your pension from age 55 (rising to 57 from 6 April 2028).

You don’t have to decide yet, but when you get to that stage it's up to you how you use your pension money.

You can:

  • Get a flexible income: Leave the money in your pension pot invested and take a regular income from it. You can change the amount as you go.
  • Get a guaranteed income for life: Buy an annuity, which gives you a guaranteed income for life. You can't change this later.
  • Take a lump sum(s): Take cash from your pension pot in one or more lump sums. The first 25% is normally tax free.
  • Combine your options: You can take a combination of any of the options above, for example take a lump sum and buy an annuity.

When it comes to arranging your retirement income, we would always recommend that you shop around because other providers may offer a higher level of retirement income and access to different options that could suit you better. We also recommend you seek appropriate guidance or advice to understand your options at retirement. From age 50 you can get free impartial guidance from Pension Wise - a service from MoneyHelper  

You can also log in to your online account and use our personalised tools to help you understand which options might be right for you.

Looking for financial advice?

A financial adviser can help you plan for the future and help you get the most out of your pension plan. Financial advice will cost money, but it could help you be better off in the long run. An adviser may provide their first consultation for free and then discuss their fees for ongoing support.

If you want to use a financial adviser, you should always make sure they're authorised by the Financial Conduct Authority (FCA). The government's MoneyHelper service has a useful guide to help you find a financial adviser

If you're looking for help with your company pension, or other financial matters, but don't think you need a financial adviser, you can always use the government's free, impartial Money Helper service

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