How your company pension works

Are you puzzled by pensions? Don’t be. Because despite what you might think, they’re actually very simple. Here’s how your company pension scheme works.

Money goes in

First of all, payments are made into your pension pot. In most cases, it’ll be you and your employer who makes these payments, usually on a monthly basis.

You don’t pay any tax or national insurance on payments your employer makes. And you get tax relief on any payments you make yourself. Tax treatment depends on individual circumstances and may be subject to change in future.

That money is invested

The money paid into your pension pot is then invested in line with whatever investment option you’re using. (This will be the investment option your employer has chosen for you, unless you’ve made another choice.)

Over the long-term, your pension pot will hopefully grow in value. However, as with any investment, its value can go down as well as up, so there’s a chance you may not get back the amount paid in.

You can use your pension pot to provide for your retirement

When you are ready to take your retirement benefits, you will have various options. We will write to you in advance to let you know what your options are. You can also find out about them now by visiting our Retirement Centre.

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Important Information

Please take the time to read the essential guide to your scheme, which includes the key features and terms and conditions.

For your Company Pension

Your company pension scheme

For your Company Stakeholder Pension

Your company stakeholder pension scheme

Will you be auto-enrolled?

Millions of us are being automatically enrolled into pension plans. Are you?

The benefits of a pension

Find out why paying into a pension can really pay off for you.