FAQs
We answer some frequently asked questions to help you manage your retirement savings.
- How do I update my contact details?
- You can review and update your contact details by logging into your Plan account (click ‘Login’ above > ‘My Details’ > ‘Personal Details’).
- Can I transfer my pension out of the Plan?
- Yes, you are able to transfer your pension savings out of the Plan. Transferring your
pension benefits into another approved pension arrangement, such as a personal pension plan, allows you to take advantage of the pension flexibilities now available (including taking the full 25% of your benefits as tax-free cash). The value of your guaranteed pension is taken into account when determining the transfer value. If the transfer value of your guaranteed pension exceeds £30,000, you must seek financial advice from an independent financial adviser. If you wish, the value of your post-April 2016 contributions can be transferred out separately from your guaranteed pension. Contact the administration team to request a transfer quote:
- What if I live overseas or move overseas?
- You can still take your pension from the Plan if you live overseas. Your pension will normally be paid by bank transfer and can be paid to a non-UK bank if you wish.
The pension will be calculated in Pounds Sterling, so if you wish your pension to be paid in local currency, there may be a cost to do this. If you are a resident for tax purposes in a country outside the UK, you will need to consider any local tax issues which may arise due to your new income.
You may also be able to transfer your benefits to an overseas approved pension arrangement provided you have taken advice from a financial adviser regulated by the Financial Conduct Authority if your transfer value is more than £30,000. - What are the 2020/21 pensions tax limits in the UK?
- You can read about the pensions tax allowances for the 2020/21 tax year here.
- What State benefits will I receive in addition to my savings in the Plan?
- In addition to any pension savings you have built up in the Plan, you will also receive a State Pension payable from your State Pension Age. Your State Pension Age will depend on when you were born.
Use the Government’s State Pension Checker to find out how much State Pension you can get, and from what age at https://www.gov.uk/check-state-pension - Can I make additional payments into the Plan?
- Yes. You do not have to pay anything, but if you want to contribute towards your account, you can choose to pay Additional Voluntary Contributions (AVCs). The more you contribute, the bigger your savings are likely to be. It might not cost as much as you think as you get tax and National Insurance relief (up to certain limits) on the AVCs you pay into the Plan. To start making AVCs, or to change your existing AVCs, go to the online flexible benefits system – MyReward. Also, the flexible benefits window opens in November – this offers an opportunity to review your contributions.
- Does the Plan provide me with a guaranteed pension?
- Unlike pure Defined Contribution (DC) pension plans, the Plan provides you with a guaranteed minimum level of retirement income for service before 5 April 2016. While your DC benefits depend on investment returns and how much you contribute into your Plan, the guaranteed pension provides a secure, guaranteed level of pension which doesn’t depend on contributions or investment returns.
- What does Target Retirement Age mean?
- If you are invested in a Lifestyle strategy, your Target Retirement Age (sometimes seen as ‘TRA’) determines when your savings automatically start moving to less risky funds in order to protect the value of your savings in the run up to your retirement. But, if your Target Retirement Age is set too early, you might be missing out on potential investment growth. Your Target Retirement Age also determines the pension projection in your benefit statement. However, you should also consider the Company’s early retirement policy when setting your Target Retirement Age, as you may not be able to take early retirement at your preferred Target Retirement Age. Review your Target Retirement Age by logging in to your Plan account (click ‘Login’ above).
- How do I update my Death Benefit nominations?
- If you wish to review or update your Death Benefit nomination, you can do this by logging in to your Plan account (click ‘Login’ above > ‘My Beneficiaries’ > ‘Death Benefit Nomination’), or via MyReward.
- Can I take some of my benefits as tax-free cash at retirement?
- Yes. You may be able to take a portion of your benefits as a tax-free cash lump sum at retirement. If you take a lump sum, any pension you may wish to buy from an insurer will be reduced. However, due to the requirement to provide the guaranteed pension, the maximum tax-free lump sum you can take may be less than 25% of the value of your Plan account (the statutory minimum level). If you want to access the full 25% tax-free cash you may wish to consider transferring out of the Plan. Contact the administration team to request a transfer quote:
- How do I change my investment choices?
- You can view and change your investment choices by logging on to your Plan account (click ‘Login’ above > ‘My Account’ > ‘My Investments’), or via MyReward. You can change your investment choices as often as you like.
- Can I take advantage of the pension flexibilities through the Plan?
- No. The Plan does not offer options such as income drawdown or partial retirement. Therefore, if you wish to take advantage of the pension flexibilities now available, you need to request to transfer your pension benefits into another approved pension arrangement, such as a personal pension plan. The value of your guaranteed pension is taken into account when determining the transfer value. If the transfer value of your guaranteed pension exceeds £30,000, you must seek financial advice from a financial adviser regulated by the Financial Conduct Authority. If you wish, the value of your post-April 2016 contributions can be transferred out separately from your guaranteed pension. Contact the administration team to request a transfer quote: