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Frequently asked questions for Personal Pension

Click on the links below to find the answers to the questions.

How does a pension work?

Read our beginners’ guide to pensions and retirement where we explain the different pension savings options and how to make the most of your money when you retire.

Can I increase my payments once the plan has started?

You can increase the amount you pay at any time subject to the limits that apply. You can even stop making payments if your circumstances change, although you should always discuss this decision with your financial adviser as it is likely to mean less money is available when you take your pension. You can request an illustration from us showing the effect of reducing or stopping your payments.

Is there any upper limit to my payments?

Read our Beginners Guide to Pensions and Retirement for full details of the limits that apply.

This information is based on current tax rules which may change in the future.

What are your charges for?

Like most private pensions, we charge for managing and investing your plan. If you set up a Top Up Plan, additional charges will apply to pay for any advice you have received from your financial adviser. 

Details of the charges can be found in the personal illustration and product literature you received when you started your plan and the plan statement you receive every year. 

How can I check how my plan is performing?

When your plan is set up, you will receive your policy documents followed by a personalised Illustration based on your chosen payments, fund choices and selected pension date. This will show you what you might expect when you take your pension if certain growth rates are achieved. What you'll get back isn't guaranteed.

Every year, we’ll send you an updated pension benefits statement which shows the value of your plan and what you might get back, provided certain assumptions are met. You can also keep track of your pension online, as well as checking daily fund prices.

What happens if I change jobs?

If you change jobs, become self-employed or leave paid employment then you simply take your plan with you. In most cases, you (and your new employer if you have one) will be able to continue making payments to your plan. Please note that, regardless of whether you are earning or not, there will be a limit to how much you can pay.

What happens if I die before I retire?

The full value of your pension plan will normally be used to provide a cash lump sum for your dependants or beneficiaries, although it can be used to provide an income for one or more dependants or beneficiaries using an annuity and/or an income drawdown plan. For further details please contact your financial adviser.

What are my options when I take my benefits

For further details of the retirement benefits available, please see the Pension Options page or refer to the Key Features of the Personal Pension.

When do I need to decide what retirement option to take?

You need to review your options and contact us before your 75th birthday. Under the terms of this policy we require you to choose a retirement option by age 75. That way you can take advantage of the full range of available options and don’t miss out on taking your pension in the way that best suits your needs.

If we don’t hear from you before your 75th birthday, we will automatically buy an annuity for you in accordance with the policy terms. This will give you a regular and guaranteed income for life but you will lose the opportunity to take tax-free cash or an alternative option which may better suit your needs. By missing out on the opportunity to shop around you might end up with a lower income as a better deal might be available elsewhere.

Have we answered all your questions?

We hope you have found this summary of frequently asked questions helpful. If you have any further questions please contact us.