Every year, Aviva sends you a benefit statement that tells you how much your savings in the Babcock Retirement Savings Scheme (the Scheme) are worth now and what they could be worth in the future.

This projected figure is called a Statutory Money Purchase Illustration (SMPI) and it shows what the yearly income from your Scheme savings could be if you were to buy an annuity (an insurance product that provides a regular income) when you retire.

But how do you know if your savings will be enough to give you the retirement lifestyle you want?

Using Aviva’s Shape my Future modeller, you can key in a few simple details about yourself and your retirement savings, and then answer some questions about the lifestyle you see yourself living when you retire. The modeller will then let you know if you’re on track to meet your retirement goals.

Don’t worry if you’re not quite there yet – there are still plenty of small changes you can make now that could help you reach them.

Unless you decide to change it, your Target Retirement Age (TRA) in the Scheme is 65. As part of your retirement planning, you should also consider when you’ll reach your State Pension age (SPA). If there’s a gap, for example if your SPA is 67, you might decide to change your TRA to 67 too. This would give you more time to build up your Scheme savings and generate investement returns.

Whether you’re invested in the Scheme’s Lifestyle funds or you’re managing your own investments through Self-Select, it’s always a good idea to keep any eye on your investments. As you approach retirement, your funds should start to move into lower-risk investments. Remember, if you change your TRA, how your funds are invested will need to reflect this. You can change your investment choices at any time by logging into your membersite account or by contacting Aviva.

One of the key decisions you’ll have to make when you’re planning your retirement is how you’ll use your Scheme savings. You can take all of your fund as a cash lump sum, leave it invested and take income from it as and when you need it, or use your fund to buy an annuity from an insurance company.

You can also take up to 25% of your savings in the Scheme as a tax-free cash lump sum when you retire.

Explore your retirement options

If you’ve been awarded a payrise or you’ve cleared a major debt (house or car repayments, for example), why not divert some of that extra cash into your Scheme account? If you want to change your contribution rate, email payroll with the percentage you would like to pay (include your payroll reference number or National Insurance number). Alternatively, complete the change of contribution form.

Remember your employer will match your contribution rate to a maximum percentage. If you are not aware of the maximum rate your employer will pay please contact your local HR representative for confirmation.