What other benefits might be available from a workplace pension?

Some of the other benefits that might be available from a workplace scheme may include:

  • the ability to take a tax free lump sum when you retire (in return for a reduced pension);
  • choice about retirement date;
  • ill health retirement arrangements*;
  • 'death in service' benefits*; and
  • pensions for a surviving spouse or partner, and sometimes for children as well.

*Money purchase schemes generally do not provide ill health retirement or death in service benefits, but a good employer will provide these through separate insurance arrangements.

Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.