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What is a group personal pension?

A group personal pension is a collection of individual pension plans set up as a group.

One of these plans belongs to you. Your contributions are taken directly from your salary and paid by your employer to Scottish Life. We invest them in investment funds until you start taking your retirement benefits. And when that time comes, you will use the retirement savings that you have built up to give you a regular income in your retirement.

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. So each time you pay into your plan, the taxman pays in too.
  • If you're a higher rate taxpayer you can claim additional tax relief through your self-assessment.
  • Your savings 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 lump sum to your family or someone else you choose.

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.

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

When deciding how to invest your retirement savings you have two main options. Your employer may have chosen an investment option for your plan with help from their financial adviser. You can stick with this option or you can choose your own investments instead.

Investment returns may fluctuate and are not guaranteed. This means that the value of your investment can go down as well as up and you may not get back the value of the original investment.

Accessing your pension

The retirement savings you've built up through your plan can be used to provide you with a regular income. You can normally start taking your retirement 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.

Online service

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 plan.

Last Update March 2014

14W0174/3

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