Money Purchase Plan
With this workplace pension scheme your employer will pay contributions in line with the scheme rules and automatic enrolment minimum contribution requirements. You may also have to contribute for the same reasons, and may be able to make extra payments into the scheme. This will help boost your income in retirement.
We have put together some key points which we think might be helpful to you.
Saving into a pension and topping it up is a great way to help build up a larger fund for when you retire. Read more about the benefits of topping up.
If you are looking to make any changes to your existing Money Purchase Plan or have any additional questions that have not been covered please contact us using the details at the bottom of this page. Please also refer to the "What would you like to do" section at the bottom.
To find out more about your costs and charges please click here.
Read about the features of your Money Purchase Plan
Your pension contributions can be invested in a choice of funds (refer to your plan literature for more on this). The funds available to you will depend on the particular scheme you join and the investments the scheme trustees have chosen. The value of your investment can go down as well as up so you might get back less than you put in.
You can switch your money between funds at any time. We may apply a Market Value Reduction if you switch money out of our With-Profits Fund also restrictions may apply for certain funds. For more information please read your plan literature.
- If you pay contributions into your Money Purchase Plan, these will qualify for tax relief.
- You can take a tax free lump sum on retirement.
- Any pension in payment is taxed as earned income.
- You can read more about tax benefits here.
*The above is based on our understanding, of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice. Because tax rules can change, the impact of taxation (and any tax relief) depends on your circumstances.
You might want to keep all your pensions in one place. This may be of benefit to you depending on your circumstances. Your previous pension plan might have valuable guarantees you’d lose if you transfer your pension pot away. You should check with your previous scheme regarding any guarantees before you transfer, as these guarantees would be lost immediately on transfer and, once the transfer is paid, the guarantees cannot be reversed. You should also consider speaking to a financial adviser before you make a decision.
If you would like more information on this you can contact us using the details at the bottom of this page. If you require any advice please speak to a financial adviser.
Shop around before you decide what to do.
The retirement options you get from your pension provider might not be the best for you. It’s always worth comparing what you can get from other providers too, because you might be able to get a better deal.
Accessing your Money Purchase Plan
If your company set up your scheme with us after 2003 you can access your plan on-line. Otherwise you can contact scheme trustees to find out more about your Money Purchase Plan.
Managing your Money Purchase Plan on-line enables you to see a valuation of your funds, change the funds you invest in, view key documents and request changes to personal details. You can also contact us through a secure messaging.
To access your plan on-line please click here.
Every employer with at least one member of staff is required by law to put employees under certain criteria into a workplace pension plan. We have an employer’s section on our website for more information on this, please click here to view this.
If you’re thinking of making any changes to, or paying more money into your plan we think it’s really important that you speak to a financial adviser. An adviser can help you understand if making changes to your plan is right for you and fits with your aims and circumstances, which might have changed since you first took your plan out. Using an adviser means they are responsible for the advice they give you and you will have protection from the Financial Ombudsman Service.
Regardless of whether you have taken advice, you can refer any matter to the Financial Ombudsman Service for consideration should you feel that you haven’t been treated fairly, or for any other aspect under the Financial Ombudsman Services remit.
If you do not have an adviser and would like to know more about financial advice you can always contact us for help. Click here for more guidance and the types of services we offer.
What would you like to do?
0345 300 2634
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Write to us - Prudential, Lancing, BN15 8GB
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