How a pension works
Here you'll find a summary of how a pension works and some of the benefits it can offer you.
You'll receive extra contributions into your plan
Each time you save into your plan, so will the taxman. This is called tax relief; it depends on individual circumstances and may change in the future. This will help to boost your retirement savings.
How tax relief works
Let's have a look at an example for someone who pays basic rate tax.
- You decide to contribute £100 each month.
- Because of tax relief, you only have to contribute £80.
- The taxman will contribute the other £20.
Top up your retirement savings
You can make single contributions into your plan at any time. So if you find yourself with spare cash, you could add it to your plan.
Have all your retirement savings in one place
You can transfer retirement savings from other pension plans. This will make it easier for you to keep track of them. Transfer payments from one pension plan to another don't receive tax relief and aren't always in your best interests.
You should speak to your financial adviser before you make a decision.
Share our success
We'll aim to give your retirement savings an extra boost by adding a share of our profits to your plan each year. So if we do well, so do you. We've called this your ProfitShare.
Your retirement savings are invested to help them grow
You can stick with the investment you choose with the help of your financial adviser, or refine it to suit your changing circumstances.
Remember that investment returns are never guaranteed so you could get back less than you put in.
Take your retirement benefits in a way that suits you
Take some or all of your plan as a cash lump sum- 25% of each lump sum will be tax-free. Or if you want a guaranteed income for life, take up to 25%of your plan as tax-free cash or as regular payments.The rest of your plan can be used to buy an annuity.
If you want more flexibility, our income drawdown plan, Income Release allows you to take an income as and when you need it. Unlike an annuity, income payments are not guaranteed for the rest of your life. Both the income payments and the value of your plan may go down. An initial one-off charge applies when Income Release is first used.
Find out more
Your financial adviser will be able to tell you more about the benefits of saving into a pension.