Money Purchase Plan

With this company pension scheme you and your employer may pay contributions depending on the scheme rules, to help boost your income in retirement.

Average life expectancy is increasing so saving in a pension - and topping it up - is a prudent way of helping to fund the lifestyle you want in retirement. Read more about the benefits of topping up.

To top up, read your plan literature and call us on 0845 300 2634 (Monday - Friday 9am-6pm). We will help answer any queries if you don't have your plan literature to hand.

Features of a Money Purchase Plan

• Range of funds - your pension contributions can be invested in a choice of funds - read your plan literature for more on this. The funds actually available to you will depend on the particular scheme you join and the investments the scheme trustees have chosen. Note that the value of your fund may fluctuate and you may not get back your original investment.
• Flexibility - switch funds free of charge and as often as you like. Some restrictions may apply for certain funds and for investments in the With-Profits Fund we may apply a Market Value Reduction, which would have the effect of reducing your fund. For more information please read your plan literature.
• Tax-efficient saving* - the contributions paid into your money purchase plan qualify for tax relief, and you can take a cash-free lump sum on retirement. Read more about the tax benefits. Note that pensions in payment are taxed as earned income.
• You can transfer pensions with previous employers into your plan so they're all in one place - although this may not always be in your best interests. Call us to find out more information or for advice please speak to a financial adviser.

Review your Money Purchase Plan

• Read your Money Purchase Plan literature.
• Send us a secure email.
• Call us 0845 300 2634 (Monday - Friday 9am-6pm).
• Find out more about pensions in general in our pensions guide.

*The above is based on our understanding, as at 6 April 2010, of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice. The impact of taxation (and any tax relief) depends on individual circumstances.