Why save in a workplace scheme?
Updated 04 May 2016
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. Together, this all adds up to make your total contributions.
What happens to your money?
We invest your total contributions into funds. If you’ve been automatically enrolled or opt into your scheme, your contributions will be automatically invested in the 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 Risk Target funds, which make investing easy by offering a risk-investment strategy conveniently packaged in just one fund.
Or, you can choose from a wide range of other investments. See the full list of funds available.
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 ready to retire. If you leave your company you may be able to transfer benefits to a new scheme. We recommend you get professional financial advice if you need more information on transferring.
Speak to your employer to find out more about your workplace scheme.