A new planning tool designed to help members manage regular income withdrawals during retirement has been unveiled.
People’s pension, which serves seven million savers, developed the feature as part of its in scheme drawdown offering.
The launch comes as growing numbers of People’s Pension members approach retirement age, increasing demand for support as they transition out of the workplace.
This addition forms part of a wider programme of enhancements aimed at helping savers manage their pension pots more sustainably after they stop working.
People’s Partnership, which operates People’s Pension, is developing what it describes as a fully guided retirement experience in response to the changing needs of members.
Eligible members can access the new tool through their online accounts, where a nine step process taking around 15 minutes guides them through understanding, planning, consolidating and setting up their regular income.
Users can select either a specific income amount or choose a target duration for their withdrawals, with projections powered by modelling from Hymans Robertson.
The tool includes inflation protection, with annual reviews measured against CPI to help ensure payments maintain purchasing power.
Members can return to the tool at any time to make changes as their circumstances evolve.
The feature integrates into existing online accounts, allowing savers to explore what level of income their accumulated pension savings might support.
A new tool has been launched to help retirees plan and manage regular income withdrawals
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To encourage sustainable withdrawals, the system displays an updated projection of how long a member’s income is expected to last each time they log in.
The tool also issues alerts as pension pots decrease, helping savers monitor their remaining funds.
Those eligible can additionally access telephone support from the People’s Pension team through a newly launched retirement guidance service.
This combination of digital tools and staff assistance is intended to provide comprehensive support to members navigating the drawdown process.
The feature remains available at all times, allowing users to revisit plans and adjust withdrawal arrangements as their needs change.
Kirsty Ross, proposition director at People’s Partnership, said: “As more savers move from building up their pensions to drawing them down, they need tools that make the transition easier.
“Our new tool supports members in that shift, offering flexibility backed by clear information and modelling.”
Ms Ross said: “Retirement isn’t a single moment, it’s a series of choices that evolve over time.
“We’ve designed this tool to help members manage those choices with confidence, giving them a clear view of how long their income could last and the flexibility to adjust as their circumstances change.”
Stuart Reid, distribution director, said employer clients are focusing more on supporting staff as they move into retirement.
“Our employer customers are increasingly aware of the duty of care they have; to support staff beyond the workplace and into retirement.
“Financial wellbeing doesn’t stop at the point of leaving work, and helping employees make confident, sustainable decisions about their pension income is an essential part of that responsibility.”
GB News spoke to the CEO about his journey to the top of People’s Pension.
Mr Reid said: “What we have announced today helps employers feel confident that their employees are better prepared for life after work.
“It’s another step in strengthening the link between good workplace benefits provision and long term financial security.”
Paul Waters, partner and head of DC markets at Hymans Robertson, said demand for comprehensive guidance is rising as more savers reach retirement relying solely on defined contribution pensions.
“As the DC only generation come to take their pension in ever greater numbers, there is a clear need for comprehensive support and guidance from providers.
“Financial advice will not be practical for some.
“However, with the right guidance and tooling, as the People’s Pension are delivering here, it can make a daunting moment far easier and help members maximise their income while spending sustainably.”
Hymans Robertson is supporting the project through its Guided Outcomes APIs.
The new tool sits alongside existing People’s Pension resources, including a pension consolidation calculator and pension finder service.