What is a company pension scheme?
A company pension scheme is run by trustees on your behalf. You have an individual plan within the scheme.
Your contributions are taken directly from your salary and paid by your employer to Scottish Life. We then invest them in investment funds until you start taking your retirement benefits. And when that time comes, you will use the retirement benefits that you have built up to give you a regular income in retirement. Although, the value of your investment can go down as well as up and you may not get back the value of the original investment.
At a glance
To encourage you to save into a pension, the Government offers generous tax advantages:
- The contributions you make benefit from tax relief at your highest rate as they are deducted from your salary before tax is calculated.
- Your contributions are allowed to grow in a tax-efficient way.
- If you die before you start taking your pension, it can be paid as a tax-free cash sum to your family or someone else you choose. There are limits on the amount that can be paid - speak to your scheme trustees to find out the limits that apply to you.
We've based these details on our understanding of current taxation law and practice. They might be affected by any future changes in legislation and your own personal circumstances. If you need more information on tax you should get professional financial advice.
This couldn't be easier. Your employer will deduct your regular contributions from your salary and send them to us along with any contributions they make on your behalf. So you don't need to worry about setting up direct debits or sending cheques.
Investing your money
The trustees of the scheme will normally decide on how to invest your pension contributions. However, they will take your wishes into account when making their decisions.
Accessing your pension
The pension contributions you've built up through this account will be used to provide you with a regular income. You can start taking your income any time from age 55, even if you're still working.
And you can choose from a range of options to help tailor your retirement benefits to your needs.
These days, many of us do our banking online: and at Scottish Life we offer a similar facility for your pension. Our award-winning online service allows you to access lots of information about your account.
Last update: 17 April 2012