Manage your account

Manage your account

Once you apply for a Retirement Account you can keep track of it online or over the phone. We’ll also send you statements in the post.

We’ll let you know how to register online once you’ve set up your Retirement Account. You’ll be able to:

• see the value of your pension
• view all transactions and investments
• request annual statements
• change your details.

You can also manage your account over the phone.

What we will send you

Every year, we’ll send you a statement in the post. This shows all contributions for the year, tax relief and the value of your pension pot. You can also access this information through our online portal.

Paying contributions into your account

You can pay pension contributions into your new Retirement Account plan. One of the benefits of this is tax relief. If the basic rate of tax is 20%*, for every £80 you pay in, the government will top this up with an additional £20.

We’ll add basic rate tax relief automatically to any contributions you make to your Account. Your tax relief may depend on your main place of residence in the UK as advised by HMRC for each tax year. If you are a Scottish or Welsh taxpayer the tax relief you will be entitled to will be at the Scottish or Welsh rate of income tax as applicable.

If you pay tax on some of your income at a rate higher than the amount we add automatically, you can claim additional tax relief via your self-assessment tax return.

How much you can pay in without a tax charge will depend on your circumstances. You can normally pay up to £60,000 (the Annual Allowance) into your pensions each tax year without paying a tax charge (or up to 100% of your taxable yearly income if less). If you’re not working and don’t have any income, you can still pay in £3,600 each tax year (you pay in £2,880, with £720 tax relief). However, if you are a high earner, a lower limit could apply known as Tapered Annual Allowance. See further information at www.gov.uk.

If you’ve taken out a taxable cash sum or flexible income, the amount you can contribute without paying a tax charge is limited to £10,000 (the Money Purchase Annual Allowance).

How to set up or change your contributions

During your application you’ll have the option to set up regular pension contributions. We only accept contributions eligible for basic rate tax relief and the minimum you can set up is £50 a month (the equivalent of £600 per year). This means you’ll pay £40 and receive £10 tax relief (assuming basic rate of tax of 20%).

If you’d like to set up contributions that automatically increase in value each year, make a one off contribution or have someone other than yourself pay your contributions, you will have to contact us once your plan is set up. You can also stop, start or change your contributions at any time.

If you have a current work pension, you may want to consider first whether it would be better paying more into this (as your employer may be able to match your contributions).

*Tax treatment depends on your individual circumstances. Your circumstances and tax rules may change in the future.

Leave your pension to a loved one

Retirement Account allows you to pass on the value of your pension to a loved one when you die, as a lump sum or an income.

What happens when you die

If you die before you are 75, these benefits are normally tax-free. If you die on or after age 75, your benefits are taxable.

It's important to keep us up to date with who you want to leave your pension to in the event of your death, otherwise known as a beneficiary. We'll send you an expression of wish form so you can nominate a beneficiary, and if you want to make changes we can send you a new one. It is important to note that in exercising discretion in applying the benefits, Scottish Widows will not be bound by this expression of wish. Remember to update your will too.

Our dedicated team are ready to help with any questions you have.

If you die in an accident

If your Retirement Account has been up and running for less than five years and you die in an accident, your beneficiaries will get whichever is greater:

• 120% of your total payments in (this includes employer contributions and Government top ups)
• the value of your plan.

If you’ve held a Retirement Account for more than five years, your beneficiaries will get the value of your plan.

This is only valid – in both cases – if you hadn’t already accessed your pension.