When you retire, you’ll get a guaranteed regular income (or ‘pension’) for the rest of your life that normally increases every year, depending on the rules that apply to you. Your loved ones may be entitled to receive some benefits when you die.

Find out what your benefits are worth

You can find out what your benefits would be worth if you retire on a certain date, if you leave your pension scheme and then retire or if you transfer your benefits out of your pension scheme. Find out how much you could get by logging in and running a quote (not available for all members).

How your pension is calculated

While you’re a member of your pension scheme and working for the bank, you’ll build up pension benefits. How much you’ll receive is usually based on the number of years you’ve been a member, and your pensionable salary when you leave or retire.

How is this worked out?

How much annual pension you’ll receive is usually worked out like this:

Pensionable service

How long you’ve been an active member (an employee of the bank and a member of your pension scheme).


Final pensionable salary

How this is calculated depends on the rules of your scheme, but broadly, this is worked out based on your earnings at or near to when you stopped work.


Accrual rate (1/nth)

The portion of your earnings you’ll build up as a pension for each year of pensionable service – e.g. 1/60th.

What if I work(ed) part-time?

Generally speaking, the pensionable income you built up while working part-time will be based on your final full-time pensionable salary. But your years of pensionable service are scaled down to reflect your part-time hours. This only applies to periods of time you worked part-time at the bank.

When you come to take your benefits, you’ll have options:

  • You can choose when to take your benefits. The minimum age is usually 50 or 55, depending on the jurisdiction you live in. If you’re in ill health, you may be able to take your benefits earlier.
  • You may be able to choose to take a cash lump sum upfront (tax-free up to certain limits), but this will reduce your annual pension.
  • Depending on the rules of your scheme, you may be able to choose to take your additional contributions as a pension, as part of your lump sum where applicable, or to transfer them to a drawdown account and withdraw from them as and when you need.

How your pension is paid

Once you’ve retired, your pension is paid as a regular payment into your bank account (usually monthly). It is taxed as income. Each year, your pension payments may increase, as set out in the rules of your pension scheme.

You can keep track of your pension payments by checking your pension payslips on your pension record.

The Trustee undertakes regular checks to ensure that your pension is being paid to the right person. This may include sending you a Life Certificate to complete and return to the administrator. If you live in a different jurisdiction to your pension scheme, you may be asked to complete a certificate every year.

Moving house or changing your bank account?

Make sure you never miss a pension payment. If you move house or change who you bank with, please contact the administrator to let them know as soon as you can.

Support in retirement

The Bank Workers Charity exists for UK bank workers past and present. They are here to support you and your family by providing information, advice, expert help and in some cases financial help. Find out more by visiting bwcharity.org.uk.

What happens when you die

Your loved ones may be entitled to receive benefits from your pension scheme when you die. Typically, the benefits are a lump sum and a pension for your spouse and/or children. The entitlements are different depending on which scheme you’re in and when you die and the relevant rules that apply to you. In some cases no death benefits are payable.

If you die while still working for the bank, someone will need to contact the bank to let them know. The bank will liaise with the administrator to arrange for the benefits to be paid to the right people.

If you die after you’ve left the bank, your loved ones should contact the administrator directly to let them know.

Some benefits are paid at the Trustee’s discretion. This means that while your wishes are taken into account, the Trustee makes the final decision. It’s therefore really important that you keep your Letter of Wishes up to date.

Do we know your wishes?

Tell us who you’d like to receive money if you die by completing a Letter of Wishes (and keep this up to date if your circumstances change, like if you get married or have children).

Log in to complete your Letter of Wishes.

In most cases, benefits will go to the people you’ve listed. But, while the Trustee will always consider your wishes, they’re not bound by them. The Trustee will follow the requirements set out in the rules of your pension scheme for the payment of your benefits.