RETIREMENT COMMUNICATION and RETIREMENT AGE

What communications will I receive as I approach retirement?

As you approach retirement our Defined Contribution (DC) administrator Standard Life will automatically contact you at the following points before your selected 'Normal Retirement Age'. Remember, you can update your Normal Retirement Age at any point by contacting Standard Life.

 

  • ‘5 years before’ - a communication is issued by Standard Life highlighting where you're invested and your investment glide path information.
  • ‘31 weeks before’ - a communication is sent by Standard Life providing an overview of your options at retirement.
  • ‘10 weeks before’ - a further pack is sent by Standard Life reminding you of your options at retirement.
  • ‘6-8 weeks before’ you reach your normal retirement age - Hargreaves Lansdown provide an annuity broking service and will contact you with information on how you could obtain an annuity quote.
  • ‘Age 75’ - a communication is sent by Standard Life to highlight how you haven’t yet taken your retirement benefits.

 

If you're still in employment with Telefónica, making regular pension contributions and you're planning to take your pension savings at the specific date of your NRA, you may wish to avoid any final pension contributions being invested into the Plan during the month before your NRA. Any final contributions you make immediately before your NRA will be invested and this may result in a delay in you being able to access your pension savings at your chosen NRA. Please contact Standard Life or Steria for more information about not investing your final pension contribution into your Pension. If any action results in your opting out of the Pension Plan then please be aware of the consequences of doing so. Please click here for more information.

 

Remember, if you're still in employment and have reached your State Pension Age (SPA) you may wish to inform your current employer's payroll team. This will ensure you no longer pay National Insurance Contributions. You would need to send your payroll provider evidence of your date of birth. For more information please click here. If you’re employed at Telefónica you would need to contact our Payroll team Steria, please click here to find their contact details. 

 

What age can I retire from?

We've summarised the key ages within the below table. You can also click on the tabs below to find out what age you can retire from along with the conditions and rules in place.

 

 

You can currently retire and use your Retirement Account to purchase benefits at any time from the age 55. You may be able to request early retirement on the grounds of ill health before the age of 55. See ill health early retirement for more details. 

 

If my expected retirement age is 65 then does it matter if I take my Pension sooner?

Your Pension savings are likely to be lower than if you took your benefits from the age of 65 because you would have had less time to add more contributions into your retirement account. Equally, if you choose to buy an income for life, the income you get is likely to be lower than had you not retired early. This is because it is expected to be paid for a longer period and therefore is more expensive to purchase.

 

What if I want to retire later?

The law used to require you to take your benefits no later than your 75th birthday. Although this has now changed, the Trustee will contact you prior to your 75th birthday about putting your benefits into payment or transferring them outside of the Plan.

 

What happens if I don't select my expected retirement age?

If you don't make an active choice, the Plan will assume you wish to retire at age 65.

 

If you choose a Lifestyle retirement option

Under the Lifestyle option you need to select a target retirement age. To find out more about theLifestyle option, see Investment options.

 

To update your expected retirement age, please contact Standard Life.

For the purposes of calculating and paying your pension under the Plan, your Normal Pension Age is age 60.

 

Minimum retirement age

The minimum pension age is the earliest age you can choose to retire and start receiving your pension. Effective from 6 April 2010 this changed from age 50 to age 55. However, as an ex-final salary member, you have an unqualified right to early retirement. You will therefore continue to be able to take early retirement benefits from age 50, provided certain legal conditions are met.

 

These are that:

  • You must become entitled to all of your benefits under the Plan at the same time. We expect that this would be the case for most people. However, if you have built-up other benefits under the Plan (e.g. additional voluntary contributions and DC benefits) then if you want to take your final salary benefits before age 55, you must draw all of these other benefits from the Plan at the same time; and
     
  • You must not become employed by any employer participating in the Plan after you become entitled to your early retirement benefits. In other words you can’t take your pension early and keep working for Telefónica (flexible retirement).

 

If you retire from the Plan on or after your minimum retirement age you may take an immediate pension subject to your pension not being less than any Guaranteed Minimum Pension (GMP). The Plan Administrators will be able to tell you more.

 

Should you draw your pension prior to your 60th birthday it will be reduced to make allowance for the fact that it is being paid earlier and so will be paid for longer.

 

Maximum retirement age

If you are considering delaying your retirement, you will have to take your benefits no later than your 75th birthday or move them out of the Plan.

 

Our intranet pages provide more information on your employment rights.

You can currently retire and use your Retirement Account to purchase benefits at any time from the age 55. You may be able to request early retirement on the grounds of ill health before the age of 55. See ill health early retirement for more details. 

 

If my expected retirement age is 65 then does it matter if I take my Pension sooner?

Your Pension savings are likely to be lower than if you took your benefits from the age of 65 because you would have had less time to add more contributions into your retirement account. Equally, if you choose to buy an income for life, the income you get is likely to be lower than had you not retired early. This is because it is expected to be paid for a longer period and therefore is more expensive to purchase.

 

What if I want to retire later?

The law used to require you to take your benefits no later than your 75th birthday. Although this has now changed, the Trustee will contact you prior to your 75th birthday about putting your benefits into payment or transferring them outside of the Plan.

 

What happens if I don't select my expected retirement age?

If you don't make an active choice, the Plan will assume you wish to retire at age 65.

 

If you choose a Lifestyle retirement option

Under the Lifestyle option you need to select a target retirement age. To find out more about the Lifestyle option, see Investment options.

 

To update your expected retirement age, please visit Telefónica Rewards.