Making pension contributions

Purple purse

We've worked hard to make saving into your pension as easy and flexible as possible. Here’s a quick summary of the different contributions you can make. 

Regular contributions

You and/or your employer can make regular contributions to your pension.

If you’re saving into our personal pension, Pension Portfolio, your contributions will be made from your net salary.

If you’re saving into your employer’s workplace pension, contributions will be made from your net salary or by using salary exchange. Your employer will tell you which one applies to you.

Contributions made from your net salary

Your contributions are taken from your salary, after tax has been paid.

If you’re saving into our personal pension, your contributions will be made by direct debit.

If both you and your employer want to contribute to your personal pension, we’ll need to set up two separate plans because we can only accept one direct debit per plan. Alternatively, your employer can make your contribution along with theirs as part of the same direct debit.

If you’re saving into your employer’s workplace pension, your contributions will be paid to us by your employer.

Pensions benefit from something called tax relief. This means that for every 80 pence you put into a pension; the taxman will turn it into £1.

You’ll receive tax relief on all regular contributions you make to your plan up to a maximum of £3,600 a year or 100% of your earnings, whichever is greater.

Your regular contributions are usually paid monthly and can be paid as a percentage of your salary or as a fixed amount.

Tax rules depend on individual circumstances and may change.

Contributions made using salary exchange

Salary exchange is an agreement between you and your employer where you voluntarily exchange part of your gross salary in return for employer contributions into your pension.

These contributions are taken before tax and National Insurance Contributions (NIC) are paid. As your salary’s reduced, you pay less tax and NIC. Salary exchange may not be suitable for everyone.

Minimum contributions

Auto enrolment requires a total minimum contribution to be made to your workplace pension. Your employer must contribute at least part of this. If your employer contributes less than the total minimum amount, you’ll have to make up the difference.

Your employer will confirm the amount of contributions you’ll have to make and will tell you if that amount will change. To find out more about the minimum contributions, visit your pension website or speak to a financial adviser.

Single contributions

You can make single contributions into your plan at any time. So if you receive a bonus from work, or find yourself with spare money; you could save it into your plan.

You’ll receive tax relief on all single contributions you make to your plan up to a maximum of £3,600 a year or 100% of your earnings, whichever is greater.

Single contributions will usually be made by cheque.

Transfer payments

You can transfer retirement savings from other pension plans. This could make it easier for you to keep track of them.

Transfer payments from one pension plan to another don’t receive tax relief. Transferring may not be in your best interests as you could lose valuable benefits which can’t be replaced. You should speak to a financial adviser before you make a decision.

Stay on track for the retirement you want

You should regularly review your contributions to help you stay on track. If you can afford to, you might want to think about increasing your contributions.

Changing your contributions

You can increase, decrease, stop and restart your contributions at any time. But remember that any changes to your contributions will affect your retirement savings.

If you want to change the contributions to your personal pension, you should speak to a financial adviser.

If you want to change the contributions into your employer’s workplace pension, you should speak to your employer. They’ll tell you what changes you can make and how to make them.

Manage your pension online

Access your plan details with our secure online service. It’s really simple to use and you’ll be up and running in no time. 

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