Follow the steps below to plan your retirement

10 years before retirement 

Make the most of your pension contributions

  • Can you pay in more to your pension savings? It might be worth looking at how much you’re currently paying in each month and checking to see whether you could pay any Additional Voluntary Contributions (AVCs) to boost your pension savings for when you retire.

Track down any lost pensions

  • If you’ve worked for different employers, you may have other workplace pension pots and it’s easy to lose track of those pots. It’s a good idea to try and track them down.
  • You can use the government’s free Pension Tracing Service to get in touch with the pension providers. Find lost pensions. 

5 years before retirement 

Start thinking about your retirement options

  • As a member of the Diageo Pension Scheme there are a few options available to you when it comes to taking your pension. Whether that be taking your Retirement Account as a lump sum, buying a pension for life (an annuity), transferring it to a new provider and accessing it flexibly (flexible income drawdown) or a combination of these options.
  • You can find out more about the ways to take your pension on the MoneyHelper website.

Decision on Retirement Age

  • Start planning for when you want to retire. This may depend on individual circumstances, financial considerations, and health.
  • Normal Retirement Age (NRA) is the age at which you can normally take your pension without reduction.
  • You can opt to take all your benefits at once, but any benefits taken before NRA may be reduced for early payment.
  • • You may be able to take your benefits early without a reduction if you are suffering from ill health.

Check pension pot and State Pension entitlement

  • Review the savings you have.
  • Review your pension statements to understand the size of your pension pot from different employments.
  • Check your State Pension entitlement with the Government.

Budget planning

  • Start thinking about how much you will need at retirement. You can use MoneyHelper's useful budget planner to get an idea for how much your lifestyle would require.

If you’re interested in retiring and you’d like more details about how much you might get at your chosen retirement date, you’ll need to contact Capita to request a retirement quote using the details on the Contact us page.

You can also use our pension illustrator tool by signing in to the Online Portal.

Calculate your pension

It’s also worth thinking now about whether you would like any financial advice to help you plan ahead. Find out more about taking advice here.

6 months before retirement

You'll be contacted to see if you still intend to retire at your Normal Retirement date. If you decide you want to retire later, please let Capita know.

If you want to proceed with your planned retirement, you will be sent a pack with details of your retirement options (either at your request or automatically as you approach the Scheme’s Normal Retirement Age).

NRA is the age at which you can normally withdraw your Retirement Account without reduction.

You should select the retirement option that best suits you and return your completed forms with any other documentation requested in your retirement pack.

If you are at all unsure of what options you should take regarding your retirement, we recommend you take professional financial advice. Find out more about taking advice here.

At retirement

Once your retirement has been processed, you’ll receive a letter confirming that your retirement account has been settled.

If you request a cash lump sum this will be paid by the Scheme. If you decide to transfer to another provider either to buy a pension for life (an annuity) or to access your money flexibly (flexible income drawdown) we will confirm the amount that has been paid to your retirement provider.

How to start planning

When it comes to planning your life after work, we understand that it can be daunting, and you might struggle with knowing where to start. There are plenty of things you can do to prepare your finances for when you’re no longer working, such as looking at what you currently have coming in, working out what you’ll need and what you want your retirement to look like (money for holidays or hobbies etc.).

Early retirement or Ill health retirement

The minimum age at which you can access your retirement account is 55. This is known as early retirement. Be aware your retirement account may be subject to early retirement reduction if you retire at this age. Please note that this minimum age may be increasing to 57 in April 2028.

Ill health can significantly impact your retirement plans, and the Scheme offers provisions for individuals facing qualifying health challenges. If you experience ill health, you may be eligible for early access to your retirement account. The specific criteria for ill health retirement may vary between different pension schemes you are a member of, but generally it involves demonstrating that you are unable to work due to your health condition.

You will need to provide medical evidence to take your benefits in this way. Diageo will consider your claim. To establish whether you qualify for immediate payment of your benefits on ill health grounds, you will need to contact us to apply.

Choosing early retirement allows you to access your retirement account sooner but might result in lower benefits. Depending on your circumstances, delaying your retirement could lead to an increased retirement account. It’s essential that you evaluate your financial situation, lifestyle and health to make an informed decision.

Budget planner guidance

Budget planning is incredibly valuable when it comes to effective retirement planning. Assessing your current financial situation will allow you to identify areas for potential savings, and help you set realistic retirement goals. You should think about the type of lifestyle you want to have when you retire.

Consider the following questions:

Remember, your full retirement pot could consist of income from multiple pension schemes, savings accounts, investments and the State Pension. Don’t forget to make a plan to manage any outgoings you might have including bank loans, rent or mortgage and bills.

By understanding how much money you need to achieve the retirement lifestyle you want; you can check whether your current pensions savings, and any other sources of income you’ll have at retirement, can support this. Taking a proactive approach early will enable you to make informed decisions about your contributions into your current pension and how you choose to invest (if applicable). It will also help you understand if you need to make any lifestyle adjustments to support your move towards a more secure financial future.

If you would like to view the pension income you might get based on your balance today, you can use the modeler on the pension website.

Your options

With different options to consider, you may wish to consult WPS Advisory to support you with your decision-making. We’ll go into more detail about your options below:

Your options

Getting quotes

Your estimate, whether obtained from the Online Portal or from Capita directly, will include details of the value of your retirement account available to provide pension benefits. You’ll then need to make the decision on what pension options to secure using your retirement account.

Getting quotes

State Pension

In addition to your Diageo Pension Scheme pension, you can also receive the State Pension. This is a regular payment from the government and most people can claim this when they reach State Pension age. Your State Pension age depends on when you were born, but for most people it is now age 66.

However, it will rise to age 67 for anyone born after 6 April 1960 and to age 68 if you were born after 6 April 1977. If you were born before 6 October 1954, your State Pension age is between 60 and 66 depending on when you were born and whether you are a man or woman.

The amount of State Pension you’ll get depends on how many ‘qualifying’ years of National Insurance payments you have paid. This includes National Insurance contributions that you pay when you are working and contributions that are credited to you when you are unable to work, for example if:

  • you've been out of work because of illness, unemployment or maternity leave
  • you're a parent of children under age 12 for whom you're claiming child benefit
  • you're a carer for someone sick or disabled, or a foster carer, or received Carer's Allowance

You'll also receive National Insurance credits if you are in work, but don't earn enough to pay it.

To find out the maximum basic State Pension visit the Government website.

More info about the State Pension

Guidance

Pensions can be a complex subject and it's important that you have all the information you need when it comes to retiring and taking your pension. Making an informed decision about when to retire will help you have a rewarding retirement.

Getting guidance

There are lots of resources to help you at whatever stage you are with your retirement planning.

The Trustee has appointed WPS to provide financial advice on retirement. You are entitled to one free session with WPS at retirement. For further information, please visit the Getting financial advice page within the Resources section.

Below are two platforms that provide useful information to help whatever stage you're at.

MoneyHelper brings together a number of helpful services, including Pensions Wise, which can provide guidance around your pension savings, but also wider financial issues like debt and savings.

MoneyHelper

Pension Wise is a government service that offers free, impartial pensions guidance about your defined contribution pension options. An appointment will help you understand what your overall financial situation will be when you retire. It will focus on your options to help you make the right decision for you and also allow you to find out about the other factors you need to consider when deciding on your options before retirement.

Pension Wise

During a Pension Wise appointment, an independent pension specialist will:

  • explain your pension options
  • explain how each option is taxed
  • tell you what your next steps are

If you are not taking regulated financial advice, we strongly recommend that you book an appointment with Pension Wise to discuss the options available to you. The appointment will take between 45-60 minutes and can be over the telephone or somewhere local to you.

These appointments can be booked online directly with Pension Wise, or you can call them on 0800 138 3944 to book an appointment.

Book your Pension Wise appointment online

What you can do to increase what you have

You’ve already made valuable contributions for your future by paying into your Diageo pension. You should also consider any other workplace pension pots you have.

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