Dear [first name],
[Date] is your last chance to sign up for [Company Name’s] Bonus Exchange scheme.
Bonus Exchange is a way of paying more into your pension as well as providing savings on your Income Tax and National Insurance contributions. If you receive your bonus as salary you will be taxed on it through PAYE. If you exchange all, or part of, your bonus instead, this will be paid into your pension without Income Tax or National Insurance deductions.
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Things to remember
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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How to sign up to Bonus Exchange
To find out more, please get in touch with: [Employer information here]
Once you’ve agreed to exchange your bonus, you can't change your mind, so you need to make sure it’s right for you.
Thank you [Employer]
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