Why save in a workplace scheme?

No matter what your plans are when you retire, you’ll need a regular income to replace your salary, not just for everyday essentials like food and bills, but also for those things like holidays and other treats you’re probably looking forward to enjoying.

Whatever your goals, it’s crucial to start saving for your retirement as early as possible. The earlier you start, the more time you have to build up your retirement fund.

How does a workplace pension work?

Your company pays a percentage of your salary into your pension plan. You do too (this is called a contribution), and the government gives you tax relief on your contributions. For example, if you want to pay £100 a month into your pension, you would pay £80 to the pension scheme from your taxed earnings and the scheme will top this up to £100, claiming £20 of tax relief from HM Revenue and Customs. Together, this all adds up to make your total contributions.

The value of any tax relief depends on your individual circumstances. 

What happens to your money if you invest in our workplace scheme? 

Your total contributions are invested into funds. If you’ve been automatically enrolled or opted into your scheme, your contributions will be automatically invested into a default fund chosen by your employer. This means you’re invested from day one. Your employer can tell you which default fund they’ve chosen for their workplace scheme.

Your employer will have chosen a fund that they think best meets the average needs of their workforce, but it may not be the best fit for you.

If you want more control over where your money is invested, you can choose a fund that’s more tailored to your needs. You might want to invest in one of our growth solutions, which make investing simpler by offering a well-diversified portfolio in a single fund to match different risk levels.

Or, you can choose from a wide range of other investments. Log in to your account to see the choices available to you.

The value of an investment can fall as well as rise and isn't guaranteed. The value of your pension pot could be less than you and your employer put in. 

It’s your pension plan

It’s still yours when you leave your company, whether that’s tomorrow or in 20 years’ time, even though you can’t actually take any money from it until you’re 55, increasing to 57 on 6th April 2028. However, you may be able to take your pension savings earlier if you're suffering from ill health or have a protected pension age. If you leave your company you may be able to transfer benefits to a new scheme. Transferring a pension may not be the best option for you. You may lose features, protections, guarantees or other benefits - so make sure you compare products before transferring. It’s up to you to decide if this is the right decision for you. If you’re not sure, speak to a financial adviser - there may be a charge for this. 

Speak to your employer to find out more about your workplace scheme.