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What is a company pension scheme?

A company pension scheme is run by trustees on your behalf. You'll have an individual account 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 can use the retirement savings that you've built up to provide you with a retirement income.

At a glance

Tax benefits

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're 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 retirement benefits, it can be paid as a tax-free lump sum to your family, or someone else you choose. There are limits on the amount that can be paid - speak to the trustees to find out the limits that apply to you.

Tax relief depends on individual circumstances and may change in the future. If you need more information on tax, you should speak to a financial adviser.

Making contributions

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 how to invest your retirement savings. However, they'll take your wishes into account when making their decisions.

Investment returns are never guaranteed. So you could get back less than what you put in.

Accessing your pension

The retirement savings you've built up can be used to provide you with a retirement income. You can normally start taking your retirement income from age 55, if the trustees agree.

And you can choose from a range of options to help tailor your retirement benefits to your needs.

Online service

Whether you want to find out more about your account or keep track of your retirement savings, you'll find our online service easy to use.

Last updated April 2014


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