Pensions in payment
Once you are getting your pension, it will normally be paid to you for the rest of your life. You should receive a payslip from your scheme or provider telling you what you will be paid and how much tax has been deducted. It is up to your scheme or provider how often they send you a payslip but they must normally send you one once you have had an increase applied to your pension.
The pension is taxable income so the scheme or provider will normally pay you the net amount after tax. Click here to find out more about the tax treatment of your pension income.
It’s important to check your pension income at least once a year. You should check that:
- You are receiving the right amount – if the scheme or provider overpays you, they will have a right to reclaim the excess from you at the later date
- The tax deducted is correct
- Any increases to the pension have been applied.
If your income is from a defined benefit scheme, it will increase according to the Rules of your scheme. Dependent upon the age of your pension, you may find that some parts of your pension increase while others do not. You should check with your scheme administrator/provider to understand how the increases are applied to your pension.
If your income is from an annuity purchased from a pension pot from a defined contribution scheme, it will only increase if you chose this option at the time of purchase.
Click here to find out more about increases to pensions in payment.
Always tell your scheme or provider of any changes to your contact details.
Change in circumstances
Always tell your scheme or provider of any changes in your circumstances; for example if you remarry, your partner dies, you are in poor health etc.
Where can I find out more?
If you need more information, please contact us. A pension specialist from our team will be happy to help with whatever pensions-related question you have. Our help is always free.