There’s more to retiring than you might think…
Whether you’re getting ready to take your Scheme pension, or only just starting to think about retirement, you have more options for using your pension savings than you might think.
Get started in 3 minutes
Watch our retirement options video…
Get a quick overview of all your available options in just 3 minutes with our animated video. It has subtitles if you need them and you can go full screen using the button on the bottom-right of the video.
After watching it, you can explore your options with confidence.
Step 1
Consider your priorities
There are a number of things that may affect the retirement option you choose. On this page we’ve detailed a few important things to think about and compare your options side-by-side. You’ll be able to read about:
- What option might be right for you?
- How much is enough?
- How long might you live?
- Protecting against inflation
- Example members (Case studies)
We recommend you speak to an FCA registered financial adviser to help consider your options. If you wish to transfer to a DC arrangement from a Defined Benefit scheme like the Silver and Gold levels of the Scheme, you are required by law to take advice if your transfer value is more than £30,000 (excluding AVCs/DC benefits).
You may be eligible for financial advice paid for by the Scheme. The Trustee has appointed Origen Financial Services, a firm of financial advisers regulated by the Financial Conduct Authority (FCA). They can help you understand your options and decide which one is right for you. You can read more about Origen Financial Services, as well as how to find your own adviser, on the Decide page by using the button below.
The Government’s Money Helper website has further information about your pension options.
What option may be right for you – Compare your options
Choosing which option is right for you will depend on your personal circumstances and what your priorities are. Here are the most common priorities that we hear from those preparing to retire.
| Your pension from the Scheme | (A) regular income for life (annuity) | (B)it at a time (drawdown) | (C)ash out | |
|---|---|---|---|---|
| The reassurance of a regular income for life | YES |
YES |
NO |
NO |
| Income increases to protect against inflation |
YES (FOR SOME ELEMENTS OF PENSION) |
OPTIONAL * | OPTIONAL ** | NO |
| Money to use now |
YES UP TO 25% OF THE VALUE OF YOUR PENSION TAX-FREE |
YES
UP TO 25% OF YOUR PENSION SAVINGS TAX-FREE |
AS MUCH AS YOU LIKE
(SOME OF WHICH IS SUBJECT TO TAX) |
ALL OF IT
(SOME OF WHICH IS SUBJECT TO TAX) |
| Something easy to manage | YES | YES
AFTER YOU’VE SHOPPED AROUND FOR THE RIGHT ANNUITY |
NO
YOU NEED TO MANAGE YOUR MONEY AND INVESTMENTS |
YES IF YOU DON’T INVEST THE MONEY |
| Leaving an inheritance(other than pension, above, or payment if I die within 5 years) | NO | NO | YES
YOU CAN LEAVE ANY LEFTOVER FUNDS TO YOUR BENEFICIARIES (SOME OF WHICH MAY BE SUBJECT TO TAX) |
YES YOU CAN LEAVE ANY LEFTOVER FUNDS TO YOUR BENEFICIARIES (SOME OF WHICH MAY BE SUBJECT TO TAX) |
| The flexibility to change my income when I like / need | NO | NO | YES
THROUGH YOUR DRAWDOWN PROVIDER. THIS INTRODUCES SOME INVESTMENT RISK. |
YES THROUGH SELF INVESTMENT. THIS INTRODUCES SOME INVESTMENT RISK. |
| Suitable if I expect to live a long time |
YES IT’S A GUARANTEED INCOME FOR AS LONG AS YOU LIVE |
YES
IT’S A GUARANTEED INCOME FOR AS LONG AS YOU LIVE |
POSSIBLY
YOU’RE IN CONTROL OF HOW LONG YOUR MONEY LASTS |
UNLIKELY PARTICULARLY IF THIS IS YOUR ONLY RETIREMENT INCOME |
* Comes at the cost of a reduction in how much money you get each month
** This depends on how much you take in the early years of your retirement, as well as if your investments perform well and how much risk you choose to take
How much money is enough?
How much is enough to live on in retirement is an interesting question. Some of your costs will reduce, like not having to travel to work, but you’ll have more leisure time and will probably want to spend more on doing the things you enjoy.
The Pensions and Lifetime Savings Association (PLSA) published the Retirement Living Standards to show you what life in retirement can look like at three different levels of income and what a range of common goods and services would cost for each level. The amounts shown below are yearly and before tax (Gross).
MINIMUM
RETIREMENT INCOME
If you’re single: £14,400 a year
For a couple: £22,400 a year
Covers all your needs, with some left over for fun
MODERATE
RETIREMENT INCOME
If you’re single: £31,300 a year
For a couple: £43,100 a year
More financial security and flexibility
COMFORTABLE
RETIREMENT INCOME
If you’re single: £43,100 a year
For a couple: £59,000 a year
More financial freedom and a few luxuries
Please note: these amounts would fund this lifestyle for people living outside London. See the detailed information on the Retirement Living Standards website for more information.
These are just a bit of a starter for 10 if you like, you may need to add other costs depending on your circumstances. You can read more on the PLSA website: retirementlivingstandards.org.uk. If you fancy doing a bit of your own budget planning, you can try out the minimum income calculator: minimumincome.org.uk or the more in-depth budget planner by Money Helper.
A financial adviser can help you to consider your income needs in retirement.
How long might you live?
Knowing how long you might live is important in helping you know how long your pension savings may need to last, especially if you’re considering the drawdown or cash options.
Did you know, a typical 65-year-old, in good health, retiring in September 2020 could expect to reach at least the ages of:
- 86 for a Woman
- 84 for a Man.
So, if you are retiring at age 65, you could live for at least 20 years after that (based on data from the Office of National Statistics). That’s 20 years of paying for the things you’ll need and want.
But we’re not all ‘typical’, it’s possible you could live a shorter time or much longer than this. In fact, there’s at least a 3% chance a 65-year-old retiring now could live to 100 so they’d need to manage their money wisely! You can read more and use an easy calculator to figure out your own life expectancy.
Protecting against inflation
Inflation is the increase in the cost of living. When there is inflation, the cost of goods and services you pay for increase.
Continued increases in inflation over time affect how much the pound in your pocket is worth and what you can buy with it.
The Scheme pension typically provides some protection against the effects of inflation.
If you transfer out, any inflation protection will depend on the option you choose. If you are considering the annuity option, you can ‘buy’ an income for life that increases in value to protect against these rises in the cost of living, although this is at the cost of a lower income to begin with. If you’re considering the drawdown or cash options, you need to be aware that things will cost more in the future. You can read more and view some examples of inflation.
Your other pension savings
If you have multiple sources of income that provide you with financial security, such as other Defined Benefit pension, then the predictability and security from your Scheme pension may be less important to you. If this is your main or only source of retirement income, you may want to be more cautious. We recommend that you speak to an FCA registered financial adviser before making any decisions in this respect.
If you’ve worked at more places than just First Bus, the chances are you may have other pension savings in other plans. Now’s the time to dig through your paperwork and find out what you’ve got elsewhere, to give you a view of your total retirement income. If you need help tracking down any old pensions, you could use the website here: gov.uk/find-pension-contact-details
Some example members
Here are a few examples of people who thought about how to pay for life after work. Each example member picked a different option, we’ll explore why and what their own priorities were. What they picked is colour coded just like the options throughout this site e.g. Scheme pension, annuity, drawdown and cash.
These are just examples to help explain the different options. They should not be read as suggesting or indicating which particular option could be right for you.
SALLY’S CHOICE
For Sally, a pension that could provide a regular income for life for her, and her husband Jim if she died first, and which provided protection against future increases in the costs of living gave her the peace-of-mind she needed. So, she decided not to transfer out and took the Scheme pension.
HAROLD’S CHOICE
What was important to Harold was a regular income each month, similar to the Scheme pension, but tailored to better suit his circumstances. Harold took financial advice and decided to transfer out of the Scheme and buy an annuity from an insurance company.
PRIVANI’S CHOICE
Privani wanted flexibility to take her money a bit at a time, changing how much she took and when. After taking financial advice and confirming that this was the right thing to do, she transferred out of the Scheme and took Drawdown.
BEN’S CHOICE
Because Ben had other pension savings, which would provide him with more than sufficient income in retirement, he wanted to take his Scheme pension as a cash lump sum. So, after taking financial advice, he transferred out of the Scheme, cashed out and used the money, after tax, to enjoy his hobbies.
Step 2
Explore your options
Get a quick overview of all your available options in just 3 minutes with our animated video. It has subtitles if you need them and you can go full screen using the button on the bottom-right of the video.
As well as the information on this website, there is a wealth of additional tools and information available on the internet from reputable Government backed sources. Here are some extra things to look at to help you understand your options.
You can take your Scheme pension from age 55. The consent of either the Company or Trustees (depending on your category of membership) is needed if you take your pension before Normal Pension Date. Your pension will be reduced to take account of the longer period it’ll be paid if you take it before Normal Pension Date.
These options usually apply to the Silver and Gold levels of the Scheme.
Please be aware that if your transfer value is over £30,000 (excluding any Defined Contribution(DC) benefits/Additional Voluntary Contributions (AVCs) you will need to prove that you have received independent financial advice before you can transfer out of the Silver and Gold levels of the Scheme to a DC arrangement (although it is not mandatory to act on the advice you have received). Please note that under the Scheme rules it is not permitted to transfer you benefits from either the Silver or Gold sections of the Scheme to the Bronze level section of the Scheme. You should ensure that the financial adviser you use is registered with the Financial Conduct Authority (FCA) and has regulatory permission to provide pension transfer advice.
If you transfer out, you will receive an amount of money called a transfer value in return for giving up your right (and the right of your eligible dependants) to a pension from the Scheme.
You can use that transfer value to buy a guaranteed regular income (an annuity), take it a bit at a time (drawdown), take it all as cash, or mix and match. Regardless of the option you choose, you’re able to take up to 25% of your transfer value, as a tax-free cash lump sum.
We’ll colour code these options the same way throughout the site so you can navigate the site easily.
Transferring out cannot be reversed so make sure you understand the risks and benefits – this FCA webpage and FCA video provide additional information that can help you understand the option and what you could be giving up. You should also be aware of potential pension scams and only transfer out to a reputable provider. Speaking to an FCA-Registered Financial Adviser can help. As a rule of thumb, if something sounds too good to be true, it probably is.
You’ll find an estimate of your pension benefits in your Retirement benefits statement.
The Money and Pensions Service (Money Helper with effect from June 2021) website also provide some tools to help with your options, including a pension calculator and annuity comparison tool which you can access here.
If you transfer your benefits out of the Scheme
How much is enough?
It’s a good idea to know how much money you might need to buy the things you want during retirement.
How long might you live?
Or, how long do I need my money to last? Good question indeed, fortunately we have some good answers.
FAQs – your questions answered
Answers to frequently asked questions about retirement and the options available to you at retirement.
More information
Visit this section of this website to find frequently asked questions, information on tax and allowances and our retirement options factsheets.
MoneyHelper retirement information
From an easy to understand pension savings timeline to detailed information on retirement income options, you’ll find it all on MoneyHelper (MH).
FCA guide to transferring out of a defined benefit pension scheme
More information about transferring out from the Scheme and what to think about from the FCA.
MoneyHelper pension calculator
Find out your likely retirement income. In a few easy steps, the MoneyHelper pension calculator can give you an estimate of your retirement income.
MoneyHelper annuity comparison tool
According to the FCA, 8 out of 10 people lose out by not shopping around for the best annuity for their personal circumstances. This tool from MoneyHelper can help.
Step 3
Decide what to do
This is a big decision and depends on what is right for you. It’s important to have all the information you need to make it.
To help you consider your retirement options, the Trustee has appointed Origen Financial Services, a firm of financial advisers regulated by the Financial Conduct Authority to provide eligible Scheme members with tailored financial advice. They have knowledge about the Scheme, so are able to explain how your Scheme benefits and the transfer options work and make a recommendation about the most appropriate option for you. The Trustee will pay for eligible members to have one round of advice from Origen Financial Services. To find out if you are eligible for paid-for advice, see below. You can, of course, use your own financial adviser if you prefer; however, the Trustee will not pay for this advice. You can read more about Origen Financial Services, how to find your own adviser, information on advice in general, and find contact details below.
We strongly recommend that you get guidance and/or advice if you are thinking about transferring your pension out of the Silver or Gold Section of the Scheme. In fact, if your transfer value (excluding any DC benefits/AVCs) is £30,000 or larger, you have to take advice from a permitted FCA authorised and registered adviser to transfer out of the Scheme to a DC arrangement.
Advice
What is financial advice?
By taking financial advice on your retirement options, you’ll receive a specific recommendation from the adviser on the most suitable option for you, based on your own personal circumstances and financial situation.
This advice must be provided by a person with FCA permission who is appropriately regulated by the Financial Conduct Authority (FCA). This register shows firms that are regulated and authorised to provide advice on pension benefit transfers and pension products.
The Trustees are unable to provide you with advice. They are not responsible for any advice provided to you, or any decisions/actions you take as a consequence of receiving advice, so any concerns you have about advice you receive should be addressed to the financial adviser.
How does advice differ from guidance?
Guidance is intended to help you understand the different retirement options available, to enable you to make a decision.
Why might I want to take financial advice?
While the decision on whether to take financial advice is a personal one, there are some circumstances where taking advice, instead of, or as well as, guidance, may be appropriate or required.
Examples of such circumstances include:
- Your transfer value is greater than £30,000 (excluding DC benefits/AVCs) and you are considering transferring to a DC arrangement. Advice is a legal requirement in this situation.
- You expect to be affected by the Annual Allowance and/or Lump Sum Allowance (when additional tax charges may apply).
- You have complex income requirements in retirement
- You live overseas now or you’re planning to move abroad
- You have significant other assets outside of your pension savings (excluding your own home)
- You are in ill-health
- You have complex debts to manage
You can find a financial adviser by visiting the MoneyHelper website.
The FCA also provides information about transferring on their website, including a video about transfer advice.
Guidance from MoneyHelper and Pension Wise
If you have any defined contribution (DC) savings like AVCs, and are over 50 years old, you can have a free guidance call of up to an hour with a pension specialist from Pension Wise (part of MoneyHelper), a service that is provided by the Government.
Pension Wise cannot provide you with guidance about the options available for your Defined Benefit Company Pension.
If you have DC savings, to book your appointment, please call Pension Wise on 0800 138 3944 between 8am to 8pm, Monday to Friday. They will send you an email confirmation of your booking.
Or you can book an appointment online here.
Further information
MoneyHelper are available to provide information about defined benefit schemes like the Company Pension
There is a lot of information available on their website or you can talk with them by:
- Calling their helpline on 0800 011 3797 (9am to 5pm, Monday to Friday).
- Webchat (available 9am to 6pm, Monday to Friday. Just visit their website and select ‘Talk to us live’.
Please note: Guidance does not usually:
- Provide you with financial advice or consider your wider financial position, including any other savings
- Give you a specific recommendation
- Cover the options for any other pension savings you have
- Implement your chosen option – you are responsible for completing and returning the relevant paperwork to set up your retirement income
- Talk through the providers available for the different retirement options.
Financial advice from Origen Financial Services
The Trustee has appointed Origen Financial Services (Origen), a firm of financial advisers that is regulated by the Financial Conduct Authority (FCA), to provide eligible members with one round of financial advice at retirement paid for by the Scheme. Origen can help you understand your options and decide which option is right for you.
The Trustee will pay for eligible members to receive advice from Origen once, so make sure you access this service at the right time – most likely when you’re ready to retire and take your benefits.
You don’t have to use Origen, you can choose your own FCA-registered financial adviser, but you’ll need to meet the cost of their advice.
Although the Trustee is paying Origen, the advice from Origen will be completely impartial. If you take advice from Origen, the advice contract would be between you and Origen.
Origen’s advice process
Origen’s advice process is made up of two main stages; although, many members will only need to go through Stage 1.
- Stage 1: Once Origen understand your situation, they will either recommend that you retain benefits within the Scheme or that it is unclear whether you may benefit from transferring to an alternative
- Stage 2: Depending on whether you choose to proceed to Stage 2, Origen will undertake detailed financial analysis to determine whether a transfer to another arrangement is likely to be in your best interests. If they recommend that you transfer, this will automatically include a recommendation on where to transfer to and, where relevant, what funds to invest in.
If, at either stage, Origen recommends that you stay in the Scheme and draw your benefits, their recommendation will also explain which Scheme options would suit you.
One ‘round of free financial advice’…
…means that you would receive a Stage 1 recommendation paid for by the Scheme. If Origen recommends that you then go on to Stage 2, you will receive a Stage 2 recommendation, also paid for by the Scheme. You would need to meet the cost of any subsequent advice; for example, if after receiving advice from Origen, you decide that you’re not ready to make your retirement decisions and you want to revisit your options (with advice) at a later date.
How to take advice from Origen
When the time is right, you will receive (or request) a retirement pack which will include Origen’s contact details. If you choose to speak with Origen, they will need to know certain information to help them advise you on your Scheme benefits. This includes knowing your Scheme pension entitlement, date of birth and your gender, as well as the information you supply via their financial questionnaire, including:
- Your current finances (for example, debts, income, outgoings, savings)
- Your health and lifestyle
- Your plans for retirement
- Your dependants and their financial circumstances.
It will also require information about your partner, if you have one. Origen need this information to ensure that their advice is tailored to your circumstances, so please answer as fully and openly as possible. They will also ask to see a copy of your retirement pack. To give your adviser time to go over your answers, you should aim to return your questionnaire at least 2 days before your appointment.
You should also note that to provide advice, Origen need to know about your other pension savings; however, the free advice session will only provide advice on what to do with your Scheme benefits.
Sharing your information with Origen
The Trustee can provide your information to Origen, but will only do so once you have requested the Trustee do this on your behalf. When you contact Origen, they will ask you to provide your name, date of birth, Scheme reference (in your retirement pack) and National Insurance number. By providing these details to Origen, you provide permission for Origen to contact us and instruct the Trustee share your information (including your retirement pack) with Origen on your behalf, so they can provide their advice to you
Origen will be an independent data controller over the personal information they collect from you or which we share with them on your behalf. Origen will provide you with a privacy notice setting out how and why they process your personal information and who they might share it with in providing their financial advice, together with a summary of your rights in relation to your personal information. The Trustee and Mercer are not responsible for how Origen process your personal information.
Talk with Origen
You will have an over-the-phone or online discussion with an Origen adviser. The length of your appointment will depend on your situation but can typically last for around 1 to 1.5 hours. If it would be helpful, a family member or trusted friend can join this call with you (but they cannot act on your behalf). For some members, a follow-up call may be required so that Origen can fully understand your circumstances.
Once Origen have all the information that they need, they will issue you with a recommendation report. If you choose to proceed with Stage 2 of Origin’s advice process (outlined in the above section), and the advice you receive is to:
- …take your pension benefits from the Scheme
Origen can help you complete your retirement forms (if you proceed with this advice). Their recommendation will also cover how you should take your Scheme benefits (for example, all as pension, pension and some cash, etc.). - …consider a transfer
Origen will contact Mercer to obtain a transfer quotation, which will include a transfer value that’s guaranteed for 3 months. Once they have this, Origen will arrange to speak to you again to discuss your options and next steps.. - …defer retiring
Origen will provide you with reasons why they have made their recommendation. Your benefits will be retained in the Scheme. You can consider your options and made a retirement decision at a later date.
Who is Origen?
Origen is one of the UK’s leading national financial advisers, with a history of providing advice for over 130 years. They have received numerous awards in recognition of their service, including Retirement Planning Advisory Firm of the Year on a number of occasions.
Origen supports pension scheme members like you every day and they are here to help you make an informed decision. Their advice is entirely independent from the Trustee and First Group and is based on your own personal circumstances and financial objectives.
If they make a recommendation to transfer, the solution they advise will be chosen from their selected range of providers. This does include their parent company, Aegon; however, Origen is not incentivised or rewarded in any way to recommend them.
Do I qualify for paid for financial advice?
The following members are eligible to access paid-for advice:
- You’re 55 or over (or are otherwise eligible to retire); and
- Your transfer value is over £30,000; and
- You’re a UK National who resides in the UK (see below if not).
If you satisfy, the above criteria you would be eligible for paid-for advice on the benefits described on this website.
* Note that the paid-for advice is only available once. If you take the free advice but then decide not to retire or transfer your benefits, you will need to pay for any advice at a later date.
Do you live outside of the UK or have an overseas tax status?
If so, Origen’s ability to advise you may be impacted by this, as this is a very complex area. If this applies to you, please speak with Origen to find out if they’re able to provide you with advice. The Scheme will not meet the cost of advice provided by another adviser.
How do I contact Origen?
If you’d like to use Origen, contact them using the details below:
- Call Origen on 0800 124 4891
- Email Origen at FirstGroup@Origenfs.co.uk
The telephone helpline is open from 8:30am to 5:30pm, Monday to Friday (excluding Bank Holidays).
Do I need to follow Origen’s recommendation?
You don’t have to follow Origen’s recommendation if you don’t want to but if you are considering transferring when you have been advised it is not in your interests to do so, the Trustee strongly recommend you discuss this with your financial adviser so that they can ensure you understand the risks of not following their advice. Please note that Origen are under no obligation to assist any individual who wants to go against the advice provided.
Next steps
If you’re ready to do something and choose from the available options, please follow the process below.
Taking your pension from the Scheme
If you’re ready to take your pension from the Silver or Gold levels of the Scheme, you need to contact the Scheme administrator:
Aptia (formerly Mercer)
Telephone: 0370 850 0712
Email: FirstPensions.UK.GMPe@Mercer.com
Address: Aptia (formerly Mercer), Maclaren House, Talbot Road, Stretford, Manchester M32 0FP
Transferring your benefits out of the Scheme
If you want to transfer your benefits out of the Silver or Gold levels of the Scheme and choose from one of the available options discussed on this site, you need to contact:
Aptia (formerly Mercer)
Telephone: 0370 850 0712
Email: FirstPensions.UK.GMPe@Mercer.com
Address: Aptia (formerly Mercer), Maclaren House, Talbot Road, Stretford, Manchester M32 0FP
Not ready yet?
No worries, you don’t have to do anything if you do not want to. These options will be available in the future for when you are ready to consider taking your pension savings.
More Information
Contact details
Need additional help and can’t find the answers you need on this website? Here are some useful contacts.
FAQs – your questions answered
Here you can find the answers to frequently asked questions about retirement and the options available to you at retirement.
Small pensions
If you have a pension of under £10,000, or a transfer value under £30,000 there are additional considerations.
Tax and Allowances
When you are deciding how you want to take your pension account, it is important to consider the tax you would pay.
State Pension
Find out more about the State Pension, what it is worth and how to get a quote.
Avoiding pension scams
Don’t get stung and let a scammer enjoy your retirement. Find out how to avoid pension scams.
How long might you live?
Understanding how long you might live is important for retirement planning and how long your money needs to last.
Inflation and how to protect against it
Make sure you can continue to afford the things you want and need in retirement as goods and services go up in price.
Other tools and resources
Explore your options further with a wealth of additional tools and information available on the internet.
Scheme pension factsheet
Learn more about the Scheme pension, what it offers and how it is taxed.
Annuity factsheet
There are lots of options available with an annuity, find out more with this factsheet.
Drawdown factsheet
Interested in investing your pension savings and withdrawing them as and when you like?