Start by thinking about it in three smaller steps:
What will you need?
For a moderate lifestyle (where you could have a foreign holiday each year and eat out a few times each month, for example) you'd probably need a retirement income of £31,300 after tax per year or £43,100 for a couple.
To work out what you might need, use our Retirement living standards tool:
What will you have when you retire?
Check what value your Legal & General pensions might be worth when you retire. You can find this in your latest Pension Benefit Statement, or by requesting your Pension Maturity Pack through your account and clicking on your pension.
Results
These examples give you an idea of the income our retirement products might provide. They assume you take the maximum 25% tax-free cash sum available but you can choose to take less. The annual result is made up of 12 equal monthly payments. The results are examples only and aren't advice. The actual income you can get will depend on your individual circumstances.
A guaranteed income for the rest of your life
Pension Annuity
- Can pay a higher income if you have health conditions or lifestyle risks.
- Can provide an income for your spouse, civil partner or beneficiary after you die.
- Can’t change your options once the plan has started.
The figure above shows the gross income before any tax is deducted. We've assumed you're in perfect health, your postcode may impact any subsequent quote.
A guaranteed income for a set period and lump sum at the end
Fixed Term Retirement Plan
- You decide the amount of income and lump sum.
- Option to make withdrawals from lump sum or cash in whole plan.
- Higher income not available for health conditions and lifestyle risks.
The figures above show the gross income and lump sum before any tax is deducted. You are able to change the term and lump sum selected above.
A guaranteed income for a set period
Cash-Out Retirement Plan
- You decide the amount of income and how long it's paid.
- Option to cash in whole plan.
- Higher income not available for health conditions and lifestyle risks.
The figure above shows the gross income before any tax is deducted. You are able to change the term selected above.
A flexible income
Personal Pension Drawdown
- You decide the amount of income and when it’s paid
- The value of your pension can go up or down and you could get back less than you paid in
- Income isn't guaranteed, you could run out of money
The 'Annual income' figure shows the amount before any tax has been deducted. You can change it using the drop-down – the more you take, the less time your money will last. You can see the effect of three different rates of return on the size of your pot by using the 'Investment return' drop-down.
Take it all as cash
The total cash payment shown below includes the 25% tax-free amount
- Take whole pension pot in one go.
- You could pay more tax than other options.
- Money might not last as long as you need.
Mix your options
You don’t need to choose just one type of income product
You can combine some or all of them, either at the same time or one after the other, to meet your changing needs now and in the future. For example, using your pension pot to buy a flexible income, as well as a guaranteed income.
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Ready to find out more about your options?
From comparing products to understanding how much tax-free cash you can take or deciding not to take any action at all, there’s more information about your options, including benefits and considerations of each, here:
Are your details up to date?
It's important to keep your details up to date - including your planned retirement age. You can do this online in your account, by logging and clicking on your pension details.
Need some help?
There are different retirement income products to choose from and the rates they offer can vary. Shop around to make sure you get the best deal for your situation and use available guidance and advice services before you apply. Other providers may have more appropriate products or be able to offer you a higher level of retirement income.
Retirement guidance
Pension Wise from MoneyHelper
You can get guidance from the government's free and impartial service to help make your money and pension choices clearer.
The availability of appointments can vary between a few days and several weeks, so if you need guidance, it's a good idea to book an appointment slot now:
0800 100 166
8am to 6.30pm, Monday to Friday.
Calls may be recorded and monitored.
Get financial advice
Legal & General Financial Advice
We provide a retirement advice service, which can help you review what you have and need before giving you expert advice about how to make the best use of your hard earned pension savings. It will also let you know more about the costs of the service.
9am to 5pm, Monday to Friday.
Calls may be recorded and monitored.
Get financial advice
Unbiased lists financial advisers that aren’t limited to providing retirement advice and can help you with all your financial planning. Like Legal & General Financial Advice, you’ll usually need to pay for their service.
To find and compare financial advisers please visit their website below.