Research shows that those who plan ahead for life after work are more likely to feel positive about their current and future financial situation. They’re also more likely to enjoy better retirement outcomes and experiences than those who don’t.* The more prepared you are for retirement, the more likely you are to lead a better retirement lifestyle as a result.

You can read about why planning ahead is so important, and learn why it might be beneficial for you to take financial advice in The power in preparing for your future part 2: Why it’s so important to think ahead.

As a member of the British Transport Police Force Superannuation Fund (BTPFSF) you have access to a wide range of pension planning tools to support you on your planning journey. You’ll need a myFund account to use the planning tools, so make sure to register for one if you haven’t already.  

How to plan ahead:

If the thought of planning for retirement leaves you scratching your head, take a look at these 4 cost-free practical tips.

You could work through them one at a time over the course of a few weeks, breaking them down into manageable tasks.

1. Think about your current financial situation

   If other financial commitments are getting in the way of your retirement planning, you’re not alone. As the cost of living increases, statistics show that we’re having to fork out more money to pay for life’s essentials, which makes it more difficult to put money aside for your future.

   If you find yourself tightening your purse strings, you might start by thinking about how you currently manage your money, beyond your pension.

   MoneyFit can help you with this – it’s a cost-free, simple tool which can help you take control of your financial wellbeing. It offers practical tips to manage your money, budget and possibly free up more to save for your life after work. MoneyFit is completely anonymous, and your results are tailored to your personal financial circumstances. You can try MoneyFit in the ‘Planning for the future’ section of your secure myFund account.

    

2. Work out how much income you might need

   It’s proven that if you have a target to aim for, you’re more likely to achieve your goal. And, the earlier you set your target, the more time you’ll have to achieve it. You could set your target by thinking about how much retirement income you’ll need to live the lifestyle you want.

   To work out how much retirement income you might need, think about how much you’re likely to spend on essentials such as bills, rental or mortgage costs and medical expenses. You could also consider any other costs, such as holidays and hobbies. Write your expected costs down so you can refer back to them. To help you on your way, there’s a general guide to retirement costs on the ‘Saving for retirement’ page.

   To get a personalised estimate of how much you might need when you retire, try the Retirement Budgeting Calculator. You can add your own individual costs to find out how much the lifestyle you hope for could cost each year. The total cost will give you a general target to aim for with your retirement income.

    

3. Think about how you’ll pay for your retirement

   It’s likely you’ll have several sources of income when you retire. This could include your Fund pension, your State Pension, other pensions and savings or investments. Find out what they’re each likely to be worth, and add them together to see how much you might have in total.

   To find out what your Fund pension might be when you retire, request an estimate in your myFund account.

   If you’ve ever changed jobs, it’s possible that your Fund pension is not your only workplace pension. By spending some time tracing your old pensions, you could recover pension money that might help to pay for your retirement lifestyle. You can find more information on tracing lost pensions at Gov.uk.

   Remember, the total amount of income you might have in retirement may change depending on your life expectancy, changes in the law such as tax allowances and rates of inflation.

   You could then compare your total likely income with your income target from the Retirement Budgeting Calculator.

   If the numbers don’t add up, there are a number of things you can do before you stop work. You might decide to:

   • Top up your pension with Additional Voluntary Contributions (AVCs)
   • Think about when you’ll take your pension. If you delay taking your pension, it could give you longer to save for retirement
   • Clear your debts before you retire

      

     There’s more information about saving for retirement, including how to work out if your savings are on track in the ‘Planning for retirement’ section of your Fund member website.
     
     

4. Explore your retirement options

Your income from your Fund pension may change depending how and when you take your pension. Taking the time to understand your options could really pay off, as it could mean you’re able to afford a better retirement lifestyle.

To learn more about the ways you can take your Fund pension, visit the ‘My retirement options’ page.

Your Guide for Members includes more detail on your options to take your benefits, and the rules for your section of the Fund. To read your Guide for Members, log into your myFund account.