Currently retired
If a customer is already retired, the relevant pension income fields should be completed.
Please ensure that any additional retirement income, such as rental or investment income (excluding pensions), is also entered in the appropriate fields.
Packaging guidance:
For a private pension:
- Lastest months’ pension payslips (if paid more frequently than monthly, 3 months’ equivalent payslips), or
- Latest pension statement or annuity letter, and
- Lastest months’ bank statements
For a state pension:
- Latest DWP state pension letter, or
- Latest bank statement
Retirement within 10 years
If a customer is retiring within the next 10 years, their expected retirement income must be recorded. For affordability calculations, we will use the lower of either their expected retirement income or current income.
The expected retirement income should include all income received after retirement age, adjusted to the appropriately weighted amount.
Please ensure that any additional retirement income, such as rental or investment income (excluding pensions), is also entered in the appropriate fields.
Packaging guidance:
Evidence of pension such as an annual statement, latest pension projection and/or SIPP valuation
Retiring between 10 and 15 years with loan extending over 5 years into retirement
If a customer is retiring within 10 to 15 years and the loan extends more than five years into their retirement, only their current income needs to be recorded. However, we will require both clarification and appropriate evidence to demonstrate their ability to maintain the loan in retirement.
Unlike cases where retirement is within 10 years, we will not assess a specific income value but must be satisfied that sufficient provisions are in place to support the loan throughout retirement.
Packaging guidance:
Evidence of pension such as an annual statement, latest pension projection and/or SIPP valuation
Retiring between 10 and 15 years with loan extending less than 5 years into retirement OR retiring in over 15 years
If a customer is retiring within 10 to 15 years, but the loan extends less than five years into retirement, or if they are retiring in more than 15 years, we will require evidence that they are making contributions to a pension beyond the State Pension.
Alternatively, evidence of rental or investment income will also be sufficient to meet this requirement. If this has already been recorded, no further evidence will be required.
Packaging guidance:
Evidence of pension contributions on payslips or a pension pot