Make contributions to your Royal London pension plan
Tax rules and contributions
Tax rules depend on your individual circumstances and may change in the future.
Contributions made from your net salary
Your contributions are taken from your salary after tax and National Insurance Contributions (NIC) have been paid. Pension contributions benefit from tax relief. This means that for every 80 pence you put into a pension, you'll get tax relief from the government to increase it to £1. Your employer will also contribute and this can help to boost your pension savings.
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.
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.
You give up part of your salary for a non-cash benefit, in this case an additional employer pension contribution. As your salary is reduced, you pay less tax and National Insurance Contributions (NIC). Your employer will also contribute and this can help to boost your pension savings.
Salary exchange may not be suitable for everyone, and it could affect your entitlement to other benefits such as statutory sick pay. You should speak to your employer for more information. If you’re not sure whether salary exchange is right for you, you should speak to a financial adviser.
Minimum contributions for workplace pensions
There's a total minimum contribution that needs 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 contributions you’ll have to make and will tell you if that amount will change. To find out more about the minimum contributions for your plan, speak to your employer.
Stay on track for the retirement you want
You should regularly review your plan and contributions to help you stay on track. If you can afford to, you might want to think about increasing your contributions.
Changing your regular pension contributions
You can increase, decrease, stop and restart your contributions at any time. But remember that any changes to your contributions will affect your pension savings.
If you want to change the contributions into 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.
Keep track of your pension on the go
Download our mobile app to see how your pension savings are getting on whenever you like.