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.
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.
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.
Please take the time to read the essential guide to your scheme, which includes the key features and terms and conditions.
Your company pension scheme
Your company stakeholder pension scheme
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Do you know how much you’re spending each month compared to your income? This planner can help you find out.