A message from the Chair of The Bank of New York Pension Plan (the Plan).

Over the past months we know many of you have continued to adapt to changes posed by the pandemic and we hope the Government roadmap out of lockdown will offer a chance to reconnect with friends and loved-ones. As Trustees we continue to operate virtually, which is working really well for us.

Given the importance of the challenges we face as a result of climate change, the Trustees will also be continuing to place emphasis on this topic as part of their future agenda. Following its research, The Pensions Regulator (TPR) has found that ignoring climate change risks savers’ retirements and as a result it has called on all trustees to consider climate change in the context of pension savings. I wanted to take this opportunity to reinforce our commitment to this topic.

In 2019 and as part of considering Environmental, Social and Governance (‘ESG’) factors in the investment process, the Trustees added a new fund to the Plan’s range, the BNYPP Global Multi-Factor Sustainable Equity Fund (GMFSE). This fund was created with the objective of incorporating ESG considerations, along with a range of specific financial factors, to help generate long-term investment returns greater than the chosen benchmarks. As part of the investment changes effective from 3 July 2019, the GMFSE is now a key component of the Balanced Lifestyle Strategy (Default) and Alternative Lifestyle Strategy options.

The Trustees will also be working to ensure that the Plan complies with all areas of the proposed requirements around mandatory disclosure under the Taskforce on Climate-related Financial Disclosures (TCFD). This means we will, in the future, report and disclose to you how we’re doing against these climate measures.

We encourage you to regularly review your investment choices in line with your retirement goals. You can do this by going to ‘My Investments’ on your online Plan account.

Finally, we’d like to add that the latest Summary Funding Statement is now available for you to review. The statement sets out the Plan’s funding level which determines its ability to pay benefits due. Please log in to your personal account if you would like to find out more.

Take a moment to plan ahead if you’re thinking of retiring

We’ve put together the following steps to help guide you through the process of retiring. From getting hold of your retirement pack to receiving your first monthly pension payment - it’s important to factor in the relevant timescales to your financial planning.

Receiving your retirement pack

You will normally receive a retirement pack 4-6 months ahead of your Normal Retirement Age (NRA), although the point at which you retire is entirely your decision once NRA has been reached. Following your actual retirement date, it then typically takes a further 2-3 months before your benefits become available, as your pension benefits are not simply held in a savings account but need to be calculated and processed.

As a result, you should factor in the eventuality that this gap may leave you without salary or pension income, and you will need to plan accordingly to ensure that you have enough savings to cover your day to day living costs over this period.

The following steps show in more detail how the retirement process works:

Step 1: About 4-6 months ahead of reaching NRA at age 65, you will receive an automatic retirement pack from the Plan administrator, Willis Towers Watson (WTW).

Step 2: You will then need to respond to WTW to confirm whether or not you wish to retire, and assuming this is the case, if this will be at NRA or at a later date. Within your retirement pack you will be presented with a series of options as to how you may wish to access your pension. These will include the following:

• taking your benefits from the Plan as an income
• taking your benefits as an income and choosing to take part of your Defined Contribution benefits as a lump sum cash payment (up to a maximum of 25%)
• transferring your pension to another arrangement either partially or fully*

^{*In the event you wish to transfer out of the Plan, you’ll need to take independent financial advice if the value of the guaranteed benefits in your Plan is in excess of £30,000. You can obtain advice from Origen who have been approved by The Bank of New York Mellon. Origen are regulated and authorised by the Financial Services Authority, to provide financial advice to help you make your future retirement decisions. You can, however, choose your own provider if you wish.}

Step 3: Having advised the Plan administrator of your chosen retirement option, you should now expect a period of 2-3 months before you receive your first pension payment. The Plan administrator will check your pension record before calculating your benefits, following which they will then liaise with the Benefits Team at the Bank if you are an active member.

Step 4: Depending on your selected retirement option, you will be advised of the next steps by the Plan administrator. Whichever way you decide to take your money from the Plan, you must wait until your final contribution to the fund has been made, following which your funds will be disinvested within 7-10 working days.**

^{**If you are a deferred member, disinvestment can take place a week before your retirement date or on your actual retirement date.}

If, for example, you wish to transfer all of your benefits out of the Plan, then the Plan administrator will send you a transfer quote and should you wish to proceed, you will be able to access the full range of benefit options from your chosen provider. Please note that WTW will manage the transfer process for defined benefits up to £30,000.

In the case of taking your benefits from the Plan as an income, and after disinvestment of your fund, WTW will then work with HUB Financial Solutions*** to obtain an annuity quote to reflect the disinvested value of the fund. This quote is then reviewed by WTW and if it is satisfactory the annuity providers will be requested to send this to you. On receiving your annuity quote, you will then need to liaise with the annuity provider to complete the annuity application form, together with any additional information that they request, before returning the forms to HUB Financial Solutions. The timescale for this process is dependent on how quickly you return the documentation to HUB Financial Solutions and deal with their potential enquiries.

^{***Or you may wish to seek an alternative provider.}

Please bear in mind that although 2-3 months is the indicative timescale for receiving your first pension payment following your retirement, the ultimate length of this process depends on individual circumstances.

You can contact the Plan administrator, Willis Towers Watson, using the details below:

Email: bnyhelpline@willistowerswatson.com

Phone: 01737 788 120

Post: The Bank of New York Pension Plan

Willis Towers Watson

PO Box 545

Redhill

Surrey

RH1 1YX

How can I access my Plan account?

You can carry out most transactions online in your Plan account at www.BNYPP.com.

You should have a user name and password which will allow you to log on, but if you havent, please contact the administration team (details above).

Are you aware of the recent tax allowance changes?

For some individuals, but not those who retired prior to 2006, there are two limits which can restrict the tax efficiency of pension savings, known as the Lifetime Allowance (LTA) and Annual Allowance (AA).

Recent updates following the March 2021 UK budget:

• The Lifetime Allowance (LTA) for the 2021/22 tax year is £1,073,100 and is expected to remain frozen at this level until April 2026.
• Currently, the standard AA remains £40,000 for the 2021/22 tax year. For individuals with total taxable income from all sources (plus any pension savings made during the tax year) above certain limits, the AA reduces on a tapering scale down to a minimum of £4,000 per annum.

What is the Lifetime Allowance?

The Lifetime Allowance (LTA) is the maximum value of total pension benefits you can build up over your life without incurring a tax charge. The standard LTA is currently expected to remain frozen at £1,073,100 until 2026. For Defined Contribution (DC) benefits the LTA value is equal to the value of your fund. For Defined Benefit (DB) benefits, the LTA value is the starting level of your annual pension multiplied by 20, plus the value of any tax-free cash lump sum.

Your Plan benefits are a combination of DB and DC benefits. The value of LTA you use up is worked out as 20 times your guaranteed pension at retirement date in the Plan, plus the value of the remainder of your fund that is not used to provide the guaranteed pension. You can find how much of the LTA you have used up by checking your benefits statement. When you receive a retirement or transfer value quotation this will include details of how much of your LTA will be used under each of your benefit options.

Am I affected by the LTA?

You will need to consider whether the total combined value of your pension savings (from all the pension schemes you may have) may exceed the LTA when you take your benefits. The way your benefits are valued and tested against the LTA depends on the type of pension plan:

• For Defined Contribution (DC) benefits the LTA value is equal to the value of your fund.
• If you also have DB benefits in other pension arrangements, the value is the starting level of your annual pension multiplied by 20, plus any tax-free lump sum plus any Additional Voluntary Contributions.
• Your Plan benefits are a combination of DB and DC benefits. Your total LTA value at retirement will be equal to 20 times your guaranteed pension, plus the value of the remainder of your fund that is not used to provide the guaranteed pension.

For more information on the current LTA, visit the Government website at www.gov.uk/tax-on-your-private-pension/lifetime-allowance

What is the Annual Allowance?

The Annual Allowance (AA) is the maximum total contributions that can be paid into your pension in one year by you and your employer, tax free. The standard AA is £40,000 for the 2021/22 tax year. You can carry forward unused AA from the three previous tax years.

How the Annual Allowance (AA) tapers

If your taxable income including pension contributions is more than £240,000 for the 2021/22 tax year onwards, you will have an AA of less than £40,000. The £40,000 AA reduces by £1 for each £2 above £240,000, until it reaches £4,000 for incomes of £312,000 and above.

If your taxable income (including pension contributions) is £240,000 or less, the tapered AA will not apply.

If I might be affected, what do I need to consider?

You should consider whether you need to take action to prevent any tax charges. You should review your expected pensions contributions for 2021/22 and the preceding 3 tax years.

If you do exceed the AA, you will have to declare this on your Self-Assessment tax return and pay income tax on the excess at your marginal rate.

Where can I find a financial adviser?

Neither the Company, Trustees nor the Plan’s administrator can give you financial advice. If you feel that you need guidance on managing your tax with regards to your pension savings, we strongly recommend that you speak to an impartial financial adviser. To find an impartial financial adviser, visit: www.moneyadviceservice.org.uk/en/categories/financial-help-and-advice

You can also contact Origen who are the preferred financial advisers who have been appointed by BNY Mellon and the Trustees of the Bank of New York Pension Plan (BNYPP).

Telephone: 0800 092 8006*. Lines are open 8.30am - 5.30pm, Monday to Friday

Email: BNYMellonPP@origenfs.co.uk

^{*All calls are recorded for business purposes. Calls are free from landlines & from mobiles if calling from within the UK Email: BNYMellonPP@origenfs.co.uk.}

Advice from Origen is available to you at a reduced cost as an employee or ex-employee of the bank. It is important to note though that it is not a recommendation from the Trustee that you use Origen as your financial adviser, as the Trustee cannot offer advice about which financial adviser you should use.

Introducing Origen financial advice

As you approach retirement, you’ll have some important decisions to make and you should ask a financial adviser to help you make sense of your options. Even if you are not yet thinking about life after work but are considering transferring or partially transferring your Plan benefits, a financial adviser can help you to make informed decisions.

The Bank of New York Mellon has appointed Origen, who are regulated and authorised by the Financial Services Authority, to provide financial advice to help you make your future retirement decisions. As Origen have been appointed by the Bank, their financial advice is available to Plan members at a discounted price. Their advice service they provide aims to give you guidance and help in finding the right retirement option for your own personal circumstances.

It’s important to note that the choice of a financial adviser is entirely up to you and it is important to look around and find the adviser that you feel is best suited to your personal circumstances. You can find financial advisers in your area by visiting www.unbiased.co.uk.

If you choose to use Origen for retirement advice the cost of the service is £975 + VAT*. There is also an additional fee of £410 + VAT* if you would like a Transfer Value Analysis (TVAS). £500 can, if you choose, be taken from your existing pension savings to go towards meeting these costs. All fees are payable at the end of the advice process.

^{*There is an additional fee of £150 + VAT where advice in relation to the Lifetime Allowance or Annual Allowance is required.}

To find out more about Origen and how they can help you, please contact:

Origen Financial Services

Ascent 4, 2 Gladiator Way

Farnborough, Hampshire

GU14 6XN

Telephone: 0344 209 8006

Email: BNYMellonPP@origenfs.co.uk

Website: www.origenfs.co.uk.

Welcome to our new digital communications, for members of The Bank of New York Pension Plan.

As part of our commitment to support you in managing your pension and to bring news to you as and when it happens, we’re now offering more content here on the Plan website and moving away from print as much as we can.
You will now find:

• New articles – we’ll now email you when there’s something new to read throughout the year
• Frequently Asked Questions – helpful information based on the most commonly asked questions to our administration team
• Help with planning for retirement – easy to follow information about how much you might need in retirement and how tax relief works
• Feedback – tell us what you think of the Plan website and what you would like more of so that we can continually bring useful content to you to help you manage your pension

Don’t forget, you can log in to your Plan account (click ‘Login’ above) where you can see the value of your pension, manage investments, make your nominations and see your benefit statements among other things.

A message from the Chair of Trustees of The Bank of New York Pension Plan (the Plan)

We would like to take this opportunity to congratulate our newly appointed Member Nominated Trustee, Michael Young.

Scammers capitalise on vulnerable moments, and with the global uncertainty of coronavirus impacting millions of people, there has been an increase in the number of attempted pension scams over the past couple of months.

The March 2020 UK budget saw two main changes to pension tax allowances:

• The point at which the Tapered Annual Allowance starts applying has increased to £240,000 a year

• The Lifetime Allowance was increased to £1,073,100

What is the Annual Allowance?

The Annual Allowance (AA) is the maximum total contributions that can be paid into your pension in one year by you and your employer, tax free. The standard AA is £40,000 for the 2020/21 tax year. You can carry forward unused AA from the three previous tax years.

How the Annual Allowance (AA) tapers

If your taxable income including pension contributions is more than £240,000 for the 2020/21 tax year onwards, you will have an AA of less than £40,000. The £40,000 AA reduces by £1 for each £2 above £240,000, until it reaches £4,000 for incomes of £312,000 and above.

If your taxable income (including pension contributions) is £240,000 or less, the tapered AA will not apply.

If I might be affected, what do I need to consider?

You should consider whether you need to take action to prevent any tax charges. You should review your expected income and pensions contributions for 2020/21.

If you do exceed the AA, you will have to declare this on your Self-Assessment tax return and pay income tax on the excess at your marginal rate.

What is the Lifetime Allowance?

The Lifetime Allowance (LTA) is the maximum value of total pension benefits you can build up over your life without incurring a tax charge. The standard LTA is currently £1,073,100. For Defined Contribution (DC) benefits the LTA value is equal to the value of your fund. For Defined Benefit (DB) benefits, the LTA value is the starting level of your annual pension multiplied by 20, plus the value of any tax-free cash lump sum.

Your Plan benefits are a combination of DB and DC benefits. Your total LTA value at retirement will be equal to 20 times your guaranteed pension, plus the value of the remainder of your fund that is not used to provide the guaranteed pension.

Am I affected by the LTA?

You will need to consider whether the total combined value of your pension savings may exceed the LTA when you take your benefits. The way your benefits are valued and tested against the LTA depends on the type of pension scheme:

• For your Plan benefits it is the combined total value of all your pension funds when you take your benefits.
• If you also have defined benefits (DB) in other pension arrangements, the value is the starting level of your annual pension multiplied by 20, plus any tax-free lump sum plus any Additional Voluntary Contributions.

For more information on the current LTA, visit the Government website at www.gov.uk/tax-on-your-private-pension/lifetime-allowance

Where can I find a financial adviser?

Neither the Company, Trustees nor the Plan’s administrator can give you financial advice. If you feel that you need guidance on investing your funds, we strongly recommend that you speak to an impartial financial adviser. To find an impartial financial adviser, visit:

www.moneyadviceservice.org.uk/en/categories/financial-help-and-advice

The ongoing global situation has had a significant impact on many aspects of life, including the financial markets. We understand that seeing fluctuations in the value of your pension savings fall can be very uncomfortable – particularly if you’re close to retirement.

Should the worst happen, your Plan benefits could be needed to provide for your loved ones.

A message from the Chair of The Bank of New York Pension Plan (the Plan).

The past few months have brought many changes for all of us. We hope that you and your families are all keeping well during this time. In June we introduced new pages here on www.bnypp.com, including this new format of delivering Plan news to you. We hope that you have found it helpful and welcome any feedback that you have. Since that time, the Plan has continued to operate as normally as possible and the Trustees remain dedicated to the smooth running of the Plan.

Earlier in the year you may have noticed that the value of your savings was affected by market performance (and your recent benefit statement might have highlighted this as it shows the value as at 31 March 2020). Since then however, there has been a significant recovery in certain markets and the value of your savings may have improved. You can log in to your account above to check the value of your account today. Remember that retirement savings are a long-term investment that often experience ups and downs over time.

If you have a specific query about the Plan, our administrators Willis Towers Watson are available to help you on:

• 01737 788120
• bnyhelpline@willistowerswatson.com

We’re pleased to introduce you to Michael Young, our new Member Nominated Trustee appointed in April 2020.

We caught up with Michael to find out more about his role and what life is like as a Member Nominated Trustee.

As a member of the BNYPP, why did you want to become a Trustee?

I have always had a strong personal interest in financial planning for the future and was keen to participate in a key part of that – pension investments – by becoming a pension trustee for BNYPP. I also have over 20 years’ experience working in the financial services industry during which I acquired skills that would be beneficial to the Trustee role.

How was the process of being nominated? What did you have to do to get the job?

Becoming a Member Nominated Trustee involved an application process that included gaining four BNYPP member nominations. This was followed by a thorough two stage interview selection process with the other BNYPP Trustees. It involved a lot of preparation and I was delighted to have been selected.

What is your current role in the Bank?

I currently work as a Relationship Manager, based in London, within Asset Servicing focusing on the alternative funds product suite. My role involves ensuring excellent client satisfaction, seeking new business opportunities and providing client centric solutions for their asset servicing needs.

Tell us a little bit about you?

I am a business graduate of Trinity College Dublin and a Charted Management Accountant. I started my career in fund operations in 1996 and have worked in a number of European cities including Dublin, Luxembourg and London. On a personal level I am passionate about travel – the sense of adventure, exploration and learning about other cultures.

What skills and viewpoint do you bring to your role as a Trustee?

Through my current role I have experience in dealing with fund and investment stakeholders, with a strong focus on operational governance and oversight. In addition, I have recently completed the Certified Investment Fund Director programme which has provided me with valuable insight from fund governance and fiduciary perspectives. I am looking forward to bringing these to my role as a Trustee.

What are your priorities, as a Trustee, for the next year?

“I would like to continue to encourage members to be active participants and plan appropriately for their future objectives.”

My main objective is to ensure I am as effective as possible within the role. A key priority for me will be ensuring robust and effective financial planning for the pension plan. Additionally I would like to continue to encourage members to be active participants and plan appropriately for their future objectives.

What do you find most interesting about being a Trustee?

The most interesting thing I have found about being a Trustee is the sense of teamwork in approaching the role. Although the Trustees remain accountable, the BNYPP has appointed advisors and service providers each playing an important role in how the scheme is run, providing expertise, skills and knowledge so the Trustees can meet their objectives. A key part of the role is working with these advisors and service providers to act in the best interests of the members.

How have you been finding the Trustee Board meetings being held virtually?

This has been a particularly interesting experience operating in a COVID environment. The key in my opinion is to ensure you maximise those opportunities to stay connected both as part of the meeting and with your fellow Trustees. An important factor for me to ensure this has been thorough preparation to understand all the agenda items and the key issues to be decided. The Board meetings have been productive with a lot to cover, and the debate has also been very engaging.

What’s your favourite movie?

As a child of the 1980s my favourite movie is probably Star Wars: The Empire Strikes Back, because it evokes fond childhood memories. It was one of the first movies I was brought to by my parents, at The Ambassador Cinema in Dublin. I remember the sense of excitement, the thrill of something new and a classic movie as well, of course!

What are you most looking forward to when the world gets back to normal?

I am most looking forward to establishing that face-to-face connection either through meeting friends for an evening meal out, or traveling to see my family (both in Ireland and the Netherlands).

The Company makes regular contributions to your Plan account on your behalf, but you have the option to make Additional Voluntary Contributions (AVCs) at any time.

You can elect to make regular monthly or one-off AVCs. To start making AVCs, or to change your existing AVCs, go to the online flexible benefits system – MyReward. Remember that your flexible benefits window opens in November, an ideal opportunity to review your contributions to the Plan.

There is a lot to think about when it comes to life after work, and it can be overwhelming trying to make decisions when retirement may feel like a long time away. You may not be thinking of retiring soon, but if you are an active member, there are a few key reasons why saving in the Plan early on is beneficial…

Your savings get better with time

Making early pension contributions allows you to benefit from investment returns and take advantage of compound investment returns. Compounding describes how your Plan’s ‘earnings’, from both investment returns and interest, are reinvested to generate additional earnings over time. Extra growth happens because your Plan savings will generate earnings from both their initial value and the accumulated earnings themselves from preceding periods! Even small contributions made early on can be more important than larger savings made later in life when you take compounding into consideration. You can click here to learn more about compounding.

Savings from the Government

You currently have access to retirement savings through a Defined Contribution (DC) arrangement in the Plan, which means that both you and the Company pay into your personal pension account, the money is held in investments, and at retirement you can access your savings.

In addition to the core DC benefits, there is a guaranteed minimum level of your savings – also known as the Defined Benefit (DB) pension. If your DC funds are not sufficient to provide the guaranteed minimum level of your benefits, the additional cost is met by the Company. The DB benefits provided by the Plan relate to different periods of service and are split into your Guaranteed Minimum Pension (GMP) and Reference Scheme Test (RST):

GMP – For your service before 6 April 1997 (if any): the minimum level of benefits is measured against the value of Company contributions during that time.

6 April 1997

RST – For your service between 6 April 1997 and 5 April 2016 (if any): the minimum level of benefits is measured against the value of Company contributions during that time. It is calculated at 5 April 2016 (or date of leaving, if earlier) based on a number of factors.

5 April 2016

You will have seen the DC and DB elements of your Plan savings in your most recent benefit statement, and you can find out more in the Membership booklet (click ‘Login’ above > ’My Resources’ > ‘Plan documents’).

As we approach the festive season, we wish all Plan members a happy and healthy 2021.

It really has been the most unprecedented year which has put us all to the test in terms of strength and resilience. As your Trustees, we wish you and your families a most happy and healthy 2021, as we hopefully start to emerge from the pandemic with the prospect of vaccines and fully re-engaging with families, friends and colleagues.

Best wishes.

The Trustees of the Plan produce a yearly statement (signed by the Chair of Trustees) that details how the Plan helps members achieve a good outcome from their pension savings.

This annual Chair’s Statement includes information on the Plan’s investment options, charges and transaction costs, and an assessment of the overall value of the Plan for members.

Take a look at the most recent Statement covering the period from 1 April 2019 to 31 March 2020.

You’ve worked hard to build up your savings for retirement in the Plan. When the time comes to retire, how can you access these savings?

As a member of the Plan, at retirement you will receive a guaranteed pension as well as being able to take any remaining defined contribution (DC) benefits as tax-free cash and/or additional pension. Under UK pension scheme rules, the maximum you’re able to take as tax-free cash is 25% of the value of your total pension benefits (or 25% of the Lifetime Allowance if this is lower). The Lifetime Allowance for the 2020/21 tax year is £1,073,100.

Read more

As an alternative, you can also choose to transfer your benefits out of the Plan at retirement to access pension freedoms made available in 2015. If you decide to transfer your savings out of the Plan, you may have the option to:

• Take an ‘income’ from your savings regularly – your money remains invested and you take income from the fund(s) as and when you need it.
• Buy a pension for life through an annuity – you can select various options to suit your personal circumstances and preferences.
• Take a tax-free lump sum – as above, the maximum tax-free lump sum you can take is generally 25% of your pension account, subject to the Lifetime Allowance.
• Take all of your benefits as one or more cash lump sums – 25% will be paid tax free, but the remainder will be taxed at your marginal rate of income tax.

In order to access these flexibilities, you will first need to transfer* your pension benefits into a separate pension arrangement. Please be aware of pension scams (see below).

*Find an independent financial adviser

Request a transfer quote from the Plan’s administrators

Avoiding pension scams

If you are thinking of transferring your benefits to another pension provider, then you should be aware of scams. In particular, beware of people contacting you out of the blue wanting to discuss your pension, adverts offering ‘free pension reviews’ or promises of better returns on your savings, upfront cash. Once you have transferred your benefits to one of these organisations, it is often too late to do anything about it. You could lose your entire pension savings and be asked to pay a large tax bill as well.

For further information about pension scams, visit www.thepensionsregulator.gov.uk/pension-scams.

All firms offering financial products or advice should be registered with the Financial Conduct Authority (FCA). If you are unsure about a firm that has contacted you, use the FCA’s online register to check if the firm is registered at www.fca.org.uk/register or call 0800 111 6768.

The Plan is a valuable and tax-efficient way to save for your life after work, but it is only one piece of the financial puzzle.

There are many different sources of income and savings that can help provide financial security when you come to retire. The Plan and other pension plans might be the first sources that come to mind, but it is worth thinking about how your savings can build up in other areas. Below are a few things that you may want to consider.

Growing your money

There are a number of ways that you can invest your money, be it in shares, an Individual Savings Account (ISA) or a pension. No matter what options you choose, you need to make sure they are working hard for you.

The investments you choose are personal to you, and will depend on your appetite for risk and how involved you would like to be. Your investments can go down as well as up, but the longer you can keep your money invested, the more potential it has to grow in value. As time passes, you’ll hopefully see gains not only on the money you’ve invested, but also on any growth from previous years.

As you come closer to needing to draw from your investments, it’s important to consider the level of investment risk you take on. If you need the funds to cover your living expenses in retirement, you might want to consider a more conservative risk profile as you approach the time you’ll be accessing these funds.

Don’t forget to look into what kinds of tax advantages there are for any savings vehicles you choose, as this can make a difference in your total available funds when you come to access them.

Buying, downsizing or moving home

Property has the potential to provide a strong return on investment and long-term financial security. If you’re not already a homeowner, think about whether you can still make it happen – being rent/mortgage-free in retirement is a great way to reduce your living expenses later in life. If you can’t afford the home you need to live in now, consider whether you can invest in a smaller rental property that could later help provide this equity for you.

If you already own a home, you might consider downsizing or moving to a cheaper location and using the money released towards your retirement. Even if you are renting your home, you may similarly decide that you no longer need to live in the same area or amount of space. If you decide that this is right for you, you could end up with a considerable amount of extra savings.

Remember, moving house can be costly, so if you’re considering a move to help fund your retirement, consider the access you’d have to the amenities in your retirement years and aim for a single move that can provide what you might need in the long term.

Consolidating your pensions

Knowing about all of the retirement savings you’ll have available to you is essential to a good retirement plan. If you have more than one pension pot, you might want to think about consolidating them to make them easier to manage. If you still work for the Bank, you may be able to transfer other DC pension benefits into the Plan. If you have left the Bank, you can request to transfer* your benefits to another approved pension scheme. You can contact the Plan’s administrator to discuss transfer quotes and options:

01737 788120

bnyhelpline@willistowerswatson.com

^{*The value of your guaranteed pension benefits is taken into account when determining the transfer value and, if the transfer value in respect of your guaranteed defined benefit (DB) pension is greater than £30,000, you will be required to take independent financial advice in order to transfer.}

Not sure where your pension is?

There is an estimated £400 million of unclaimed pension savings. If you’ve lost track of a pension, the Government can help you find your hard-earned savings.

Bringing it all together

Most important to being ready for retirement is knowing what your goals are and how you plan to achieve them. This means thinking about when you want to retire, the level of income you’ll need and specifically how you aim to achieve this. If you haven’t already made a plan, visit Your Pension to learn more about how to get started.

This article includes some tips for ways you can think about saving for retirement outside of the Plan, but no investment is guaranteed and none of the information provided here should be considered financial advice. Neither the Bank nor the Trustees can legally give financial advice. If you would like to speak to an Independent Financial Adviser (IFA), you can find one in your area online at: www.moneyadviceservice.org.uk or www.unbiased.co.uk