Important information - A pension is meant for your retirement, so you can’t normally access your money until you’re 55 (57 from 2028). Pension and tax rules can change and any benefits depend on your circumstances. This information is not personal advice. Investments go down in value as well as up so you could get back less than you invest. If you’re not sure which investments are right for you, we can put you in touch with one of our advisers.
In a nutshell...
However you plan to spend your life after work, one thing's certain: you'll need money. That's where a pension comes in. Your workplace pension is a Self-Invested Personal Pension - 'SIPP' for short.
The way it works is simple:
adds some money every month and you do too.
The money's invested in the stock market so it has a chance to grow.
From the age of 55 (57 from 2028) you can take as much of your pension as you wish - 25% usually tax free and the rest taxed as income.
Important information - A pension is meant for your retirement, so you can’t normally access your money until you’re 55 (57 from 2028). Pension and tax rules can change and any benefits depend on your circumstances. This information is not personal advice. Investments go down in value as well as up so you could get back less than you invest. If you’re not sure which investments are right for you, we can put you in touch with one of our advisers.
Contributing to your pension
Each month, you’ll pay 5% of your reference salary (your basic pay before any reductions) and Montagu Evans will pay in 5.5% on top.
There is then a matching increase structure. For example, if you choose to increase your contributions by 0.5%, the company would also increase contributions by 0.5% up to the maximums shown in the table below. Salaried Partners & Director level employees may be entitled to higher contribution rates. Please refer to HR for more information.
You contribute (%)
Montagu Evans contributes (%)
5.0
5.5
5.5
6.0
6.0
6.5
You can decide to pay in more (up to a maximum of 20% via Salary Exchange). Changes to your contributions can be made each month via the HR self-service tool.
Contributions will be made by Salary Exchange (unless you request otherwise) which saves you tax and National Insurance Contributions. Instead of making pension contributions from your net pay (after tax) you agree to reduce your gross salary by the amount you'd like to pay into your pension. Montagu Evans then pays this amount into your pension along with the Montagu Evans contribution amount.
If you decide to pay in more than 20% then your additional contributions above 20% will be made from your net pay. This means that income tax and National Insurance have already been deducted from your salary. In this case, we’ll reclaim basic-rate tax relief from HMRC automatically and add it to your pension. If you pay a higher rate of tax, you would need to claim back any further tax relief from HMRC yourself via your tax return or by contacting HMRC directly.
To target a comfortable retirement, it's worth paying more if you can afford to. Employer payments and tax relief will help you along the way. And the earlier you pay in, the longer your money has to grow.
Try the online Pension Calculator to get an idea of what your pension might be worth when you retire - and how much it might pay you each year.
Important information - A pension is meant for your retirement, so you can’t normally access your money until you’re 55 (57 from 2028). Pension and tax rules can change and any benefits depend on your circumstances. This information is not personal advice. Investments go down in value as well as up so you could get back less than you invest. If you’re not sure which investments are right for you, we can put you in touch with one of our advisers.
Investing
Unless you choose to make your own investment decisions, your money will go into your workplace pension default fund.
The default fund is the .
Everyone's investment goals are different. They may depend on things like how much risk you're happy with and how far off you are from retirement. This means the default fund might not be right for everyone.
You may wish to consider other investments in addition to, or instead of, the default fund. After all, the secret to growing your pension over time is choosing the right investments.
All investments, including the default fund, can fall as well as rise in value, so you could get back less than you invest.
Lifestyling is designed to reduce investment risk as you approach your chosen retirement age. It does this by gradually adjusting the risk profile of your investment. This can help to shelter your pension from falls in the stock market but there are no guarantees.
Important information - A pension is meant for your retirement, so you can’t normally access your money until you’re 55 (57 from 2028). Pension and tax rules can change and any benefits depend on your circumstances. This information is not personal advice. Investments go down in value as well as up so you could get back less than you invest. If you’re not sure which investments are right for you, we can put you in touch with one of our advisers.
Charges
What you pay depends on how much you have in your pension and what type of investments you hold.
There's a tiered annual charge to hold funds in your pension, with a maximum of 0.45%, as outlined below.
Amount in your pension
HL platform charge (per year)
On the first £250,000 in funds
0.45%
On the value between £250,000 - £1m in funds
0.25%
On the value between £1m - £2m in funds
0.10%
On the value over £2m in funds
0%
Shares
0.45% capped at £200 per year
Important note about charges
The default fund and any investments you choose may have their own charges, such as charges from a particular fund manager. You can find these in the key investor information for the individual investment. These are in addition to our account charges. There’s no charge to hold cash in the Plan.
Please see the tariff of charges on the last page of our Terms and Conditions for a full list of our charges. You can also view the charges for an investment on the 'costs' tab of its factsheet on our website.
Important information - A pension is meant for your retirement, so you can’t normally access your money until you’re 55 (57 from 2028). Pension and tax rules can change and any benefits depend on your circumstances. This information is not personal advice. Investments go down in value as well as up so you could get back less than you invest. If you’re not sure which investments are right for you, we can put you in touch with one of our advisers.
Frequently Asked Questions
How can I check my pension is on track?
Sign up for online access to your pension to check its value at any time. Call us on 0117 314 1795 if you need a new PIN. Use this alongside your Client Number to sign up online.
Is there a way I could retire earlier?
Your pension could grow quicker by paying more into it, or by choosing the right investments. Check with your HR department about paying more in. Or take a look at the Investing tab to find out more about investment options.
You can’t normally access money from your pension until you’re 55 (57 from 2028). Investments can go down as well as up in value, so you could get back less than you invest.
Can I transfer other pensions to HL?
Yes. Before deciding whether to transfer, check you won’t lose any guarantees or incur fees from your old pension provider. You can transfer online, or download a transfer form and post it back to us.
How can I access money in my pension?
You’ll have plenty of options when you get to retirement. In the meantime, take a look at the Retirement Section of our website for more information. Keep in mind that you can't normally access money in your pension until you’re 55 (57 from 2028).
What happens to my pension when I die?
It’s important to let us know who you'd like your pension to go to. To do this, log in online, select Account Settings and then Manage SIPP Beneficiaries. Or complete this form and post it back to us at Freepost: HARGREAVES LANSDOWN (no stamp needed).
Your nomination isn’t legally binding, but it lets us know who you'd like your pension to go to and we'll always take this into account.
What happens if I leave my employer?
Your pension belongs to you. If you leave your employer, you decide what happens to it. You can either leave it with us, or transfer it to your new company’s provider.
It’s important that you let us know if your address or contact details change.
How do I know if my workplace pension is good value for money?
Independent Governance Committees (IGCs) are a key part of the FCA's drive to improve the governance of workplace pensions.
The role of Hargreaves Lansdown’s IGC is to protect the interests of members in the HL workplace pension. This includes ensuring members receive value for money. You can download their latest report and find out more using the link below.
A voiceover talks over imagery. The imagery compliments what is being said, but doesn’t provide any additional information.
"There's nothing more important than you and your family's future. We're lucky enough to live in a country where the state provides a pension. However, depending on how old you are now, you probably won't be able to access this until you're 68. And even then, it probably won't be enough on its own for a comfortable retirement.
If you qualify, the government pays you a State Pension. The amount you receive changes each year and depends on the National Insurance contributions you made while you were working.
Once you reach retirement, you’ll still need money to pay for food, housing, bills, health and transport – and that’s before you pay for those retirement dreams. Depending on your lifestyle in retirement, the State Pension is unlikely to be enough to cover the things you need – or want – to pay for.
Enter your workplace pension. This is separate to the State Pension – so is in your control, not the government's – and can help cover any shortfalls in your monthly outgoings. So your workplace pension is something worth paying attention to. In simple terms, there are three stages.
You pay money in, that money is invested, and then you take it out. Not that complex. To be in with the best chance of a comfortable retirement, your total pension contribution should be around 15% of your salary, although the later you start the more you’ll need to save.
But don’t worry, you'll get a helping hand getting to this number and the best bit is that your employer pays money into the pension too. And that's extra money you wouldn't otherwise receive. And as a reward for the relatively small amount you pay in from your salary, the government doesn't tax you on the amount you put in. So by not having a pension, you say goodbye to that free money from your employer and you end up paying more tax!
Let's see how that works. If you're a basic-rate taxpayer, for every £100 you get paid, the government deducts basic-rate income tax. However, if you pay £100 into your pension, the full £100 goes in, so you’re better off. And if you're a higher-rate taxpayer, the savings are even better. You may also save on National Insurance depending on how your pension is set up. But remember tax rules can change and benefits depend on your circumstances. This pot of money is invested so it can hopefully grow over time, though remember that investments can fall as well as rise in value so you could end up with less than you put in.
If you don’t choose an investment yourself, your pension will be invested in a default option, chosen by your employer. However, you might find that there are other investments better suited to your own personal circumstances and Hargreaves Lansdown can help you with choosing these if you wish. At the end of the day, the better your investments perform, the more money you'll have when you retire so it's important to make sure they're right for you.
You won't be able to access the money in your pension until you turn 55 or 57 from 2028, taking away the temptation to spend the money before you reach retirement.
But once you've reached this age, the rules are flexible. You can take as much or as little from it as you like, to support the lifestyle you want. How much you take will affect how much you get taxed. We’ll contact you with details on how this works closer to the time, or you can watch our retirement video.
So you see pensions don't have to be complicated.
This video is not personal advice. All investments and income can fall as well as rise in value, so you could get back less than you invest. If you are unsure of the suitability of an investment or course of action for your circumstances, please ask about advice. Past performance should not be seen as a guide to the future.
Watch: Workplace Pension Explained
This video is not personal advice. All investments and income can fall as well as rise in value, so you could get back less than you invest. If you are unsure of the suitability of an investment or course of action for your circumstances, please ask about advice. Past performance should not be seen as a guide to the future.
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