Dear [first name],
Your bonus is due soon and the good news is that our Bonus Exchange scheme has the potential to give your pension an extra lift.
Bonus Exchange means that you can choose to have all, or part of, your bonus paid directly into your workplace pension instead of receiving it as part of your salary. The deadline to act is [Day / Month / Year].
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It’s a case of either receiving the bonus and paying Income Tax and National Insurance (NI) contributions on it, or getting all, or some of it, paid into your workplace pension. You can split your bonus in the proportions you choose.
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You could take the bonus and spend it on what you like. You’ve earned it.
But bear in mind that once it’s gone, that’s it.
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Add your bonus to your workplace pension and it has the chance to grow in a tax-efficient environment, helping to build a pot of money for your future.
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Once you’ve agreed to exchange your bonus, you can’t change your mind. It’s allocated to your workplace pension and stays there until you take your pension benefits.
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Things to consider
There are some things to be aware of if you put your bonus into your pension:
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The earliest you can normally access your pension money is at age 55 (57 from 2028).
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The value of your pension can go down as well as up and is not guaranteed. It could be worth less than has been invested.
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Tax benefits are subject to change and their value depends on your individual circumstances.
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Bonus Exchange is not suitable for everyone. Please speak to HR for more information.
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If you’re in any doubt about doing this, contact a financial adviser who may charge you for the advice they give you. If you need help finding an adviser, please visit unbiased.co.uk.
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Get things moving
To find out more, please get in touch with:
[Employer information here]
Thank you
[Employer]
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