Getting to know your pension

Welcome to your new Aviva Workplace Pension.

This video is all about your new pension plan and your journey to Retirement.

We’re an award-winning provider with more than three million members and 300 years’ experience, so you can trust that we know pensions inside out.

A big reason for this recognition is the quality of the support we offer our members.

So, from the moment you start your retirement journey with us, here’s some of the things you can expect…

When you start your journey you’ll need some support. You’ll soon receive your member booklets where you can find out more about your Aviva workplace pension scheme.

Keep an eye out for your welcome pack, explaining how you can check your pension and access the support you need.

It can be hard to see if you’re on the right road towards the retirement you want, so we’ll give you access to useful videos, online tools and easy-to-read information –, so, no matter how far you are from your retirement, we can help prepare.

Don’t worry about losing your way. We’ll be in touch with reminders and support throughout your journey.

So, you’ll get lots of help. But you’re still in the driving seat, because we’ve made it easy for you to take control of your pension yourself.

Once your new pension is up and running, you’ll be able to register for our safe, secure, online account. Here you can view your pension’s value quickly and easily.

You’ll also be able to…

Make changes to your personal details…

Set your preferences so you get your pension information in a way that’s right for you…

Check the amount you’re paying in, how your money is being invested and make one off payments…

Start the process to transfer other pensions to your Aviva pension, if that’s the right decision for you…

And, access our pension planning tools to help and support you along the way…

It pays to keep an eye on the performance of your pension, because the value of your investments can go down as well as up. And, you could get back less than has been paid in….

If you would like any more information in the meantime visit www.aviva.co.uk/retirement.

It’s great to be starting out on our journey together.

We’ll be in touch again soon, a little further down the road.

Nowadays,...

...when going to the cinema,...

...do you notice how many different choices there are to make before we can even view the film?

 

Do we want Premier Seating? Do we want the popcorn and drink deal? Do we want to go extra large?

There’s a lot to think about and the same can be said when considering how we can take money from our pension savings.

 

When you reach age 55,...

...you are free to take the money you have saved from your defined contribution pension. There are 3 main ways to access your money:

 

Option 1:

If you prefer the security of a guaranteed income for life,...

...you can use your savings to buy an insurance policy, known as an annuity.

This income may be smaller than with the other options...

...but you won’t have to worry about running out of money in the future. Just be aware that once you’ve bought an annuity you can’t change your mind.

 

Option 2:

You can take money from your pension as and when you want it and the money you leave in your pot stays invested...

...- as it was when you were paying into your pension. Charges will still be taken but leaving it invested may give it more chance to grow.

There is a risk that the value of your investments could go down. Remember, there is no guarantee that the money will last a lifetime with this option.

 

Option 3:

You can take all of your money out as cash,...

...but as tempting as that is, you’ll need to think carefully about the tax man...

...and how long your savings will last, as taking large sums of cash...

...could push you into a higher income tax bracket...

...and you could run out of money in the future if you don’t budget carefully.

It is possible to mix the different options too if you want to.

 

Before you do anything, you can take 25% from your savings tax-free,...

...so you could pay off any debts,...

...travel,...

... or just treat yourself to the small things in life.

 

The remaining 75% of the savings you will take will be treated like your salary and taxed as income.

You don’t have to do anything with your savings either. You can leave your pension exactly where it is.

 

Whatever choice you make, it’s worth reviewing the options carefully and getting advice. You should also shop around and compare the different levels of income you could get from different providers.

Here at Aviva, we have dedicated staff available to talk you through your options,...

...so whatever route you choose, we can help you set the scene for the retirement you want.

 

If you’re busy buzzing away each day -...

...you’ve probably got a job to go to...

...a family to take care of...

...a home to keep ship shape - then saving for your future may not be the highest priority.

 

The thing is, time goes by quicker than you think, so when you actually want to retire might not be too far away.

 

The sooner you act – even if it’s saving just a small amount -...

... could mean the difference between a comfortable retirement and one that leaves you feeling...well, a little flat.

That’s why a workplace pension is the easiest way to build up a pot of money. Your employer sets it all up and will put your contribution in straight from your salary.

As long as you pay in, they’ll put their money in too.

Some employers even match your contribution, so it’s worth checking how much they’re prepared to give you and getting as much in your pot as you can - look at it as free money.

 

Besides this, the government gives you tax relief, so money that you would otherwise pay in tax is diverted into your pension pot.

 

Unlike a savings account, your pension savings are invested. This is to help your savings grow...

and the earlier you start saving, the more time they have to grow. You do have to be aware that investment values can go down as well as up and you could get back less than the amount paid in.

 

There are a number of ways you can take your money - with up to 25% being tax-free. You’ll also get a State Pension when you’re old enough - as long as you’ve made enough qualifying national insurance contributions.

The current full new State Pension is £221.20 per week - probably not enough on its own to live comfortably but...

if you’ve built up a workplace pension, it’s a good boost to your savings.

 

To see what your future could look like visit our easy-to-use, interactive Shape My Future tool which helps you see how much you’re saving and picture what your retirement could look like.

Pension planning? Isn’t that something you can worry about later?

The fact is that tomorrow comes around sooner than you think, so by saving more now it could lead to you having a better chance of you enjoying the future you want.

So, where do you begin?

First, find out what you already have, and what you could have when you retire.

There’s the State Pension, of course…

For a single person, the current full new State Pension is £221.20 per week for the 2024/2025 tax year. You need to have made 35 years National Insurance contributions to get this. Wouldn’t want to live on that? Maybe not. So, what other money would you have to live on?

Think about any money you’re saving in a bank or building society account, or an ISA. Factor that in.

Next, if you have a workplace pension, check how much is being paid in each month.

The benefit of a workplace pension is that you will normally be eligible for tax relief from the government on your personal contributions. So, if you're a basic rate tax payer, every £100 which goes into your pension will cost you £80 from your take home pay.

Next, think about what you’re going to need when you’ve finished working.

To help with retirement planning visit our website. You’ll find videos, calculators and online tools. Our Shape My Future tool can help you get an idea what your future could look like, and what you can do to make changes now.

You need to remember that your pension money is invested to try and help it grow – and, as with any investment, the value can go down as well as up and you may get back less than you put in.

If you want to join or make changes to your workplace pension just get in touch with your employer.

So in summary, find out what you’ve already got; plan how much you might need - and then take action.

Remember, if you really want to make a difference to your future, there’s no time like the present to act.

Tax and state benefits shown are for the 2024/2025 tax year. They depend on your individual circumstances and may change. This presentation should not be regarded as giving any form of financial or investment advice. You should not make your decision on the basis of this recording alone. If you have any doubts whether the product is suitable for your needs, you should contact a financial adviser for advice.

When you get around to thinking about your finances, what sort of things spring to mind?

A mortgage or car loan? Looking after the family? Paying the bills? Probably not pensions, though.

But the fact is that tomorrow comes around sooner than most of us think…

So where do you begin?

First, find out what you already have, and what you could have when you retire. Your annual pension statement can help here.

There’s the State Pension, of course……

For a single person, the current full State Pension for the 2024/2025 tax year is full new State Pension is £221.20 per week. You need to have made 35 years National Insurance contributions to get this. Wouldn’t want to live on that? Maybe not. So, what other money would you have to live on?

Think about any money you’re saving in a bank or ISA. Factor that in.

Next, if you have a workplace pension, check how much is being paid in each month.

The benefit of a workplace pension is that you will normally be eligible for tax relief from the government on your personal contributions. So, if you're a basic rate tax payer, every £100 which goes into your pension will cost you £80 from your post-tax pay. This tax relief is limited to the amount you earn in the tax year, or the level of the Annual Allowance whichever is lower.

Next, think about what you’re going to need when you’ve finished working.

To help with retirement planning visit our website. You'll find videos, calculators and online tools. Our Shape My Future tool can help you get an idea what your future could look like, and what you can do to make changes now.

Think about whether you can afford to save some extra money from your salary. Putting aside just a little now could still make a big difference later.

You need to remember that your pension money is invested to try and help it grow – and, as with any investment, the value can go down as well as up and you may get back less than you put in.

That’s why it’s important to keep a close eye on the value of your pension and other investments.

If you want to join or make changes to your workplace pension just get in touch with your employer.

So in summary, find out what you’ve already got; plan how much you might need - and then take action

And remember, however busy you may be right now it’s worth taking time out to think about your future while there’s still time to make a difference to it.

Tax and state benefits shown are for the 2024/2025 tax year. They depend on your individual circumstances and may change. This presentation should not be regarded as giving any form of financial or investment advice. You should not make your decision on the basis of this recording alone. If you have any doubts whether the product is suitable for your needs, you should contact a financial adviser for advice. 

You’re getting closer to your selected retirement age which means more freedom to do the things you enjoy.

To make the most of this new stage in your life you need to give some thought to your options, needs and goals. So, where do you begin?

First, find out what you already have, and what you could have when you retire. There’s the state pension, of course.

Chances are, your workplace pension pot will also play a big part in planning the kind of future you’d want for yourself.

There are a number of ways to take your money, such as: taking all the money as cash; taking it as a guaranteed regular income, or perhaps taking it as a more flexible income as and when you need to.

This is the current weekly state pension for a single person. You need to have 35 years National Insurance Contributions to get this much, which is the full amount. Wouldn’t want to live on that? Maybe not.

So, what other money could you have to live on?

Think about any money you’re saving in a bank or building society account, or an ISA. Factor that in.

Before you make a decision on how to take money from your pension pot, you need to get a clear idea of how much you have there, and how it’s invested.

If you want more help thinking about pensions and retirement, a good place to begin is MoneyHelper, the government-backed free guidance service.

If you are over 50 you can use the Pension Wise service, from MoneyHelper, online or by phone on 0800 138 3944. They offer a free face to face or telephone guidance session.

They won’t tell you what you should do, but they’ll provide you with information to help you understand your options.

For more tailored advice, you should speak to a financial adviser. Bear in mind they may charge a fee for this advice. If you don’t have an adviser, you can find an up-to-date list of regulated advisers at MoneyHelper https://www.moneyhelper.org.uk/en/pensionsand-retirement/taking-your-pension/find-a-retirement-adviser

You can access MoneyHelper online at http://www.moneyhelper.org.uk or by phone on 0800 011 3797.

Tax and state benefits shown are for the 2023-2024 tax year. They depend on your individual circumstances and may change in the future. This presentation should not be regarded as giving any form of financial or investment advice. You should not base your decision on the basis of this recording alone. The value of your pension can go down as well as up and you could get back less than the amount paid in.

Salary Exchange – What does this mean?

When you pay into a workplace pension, one way to do this is for your pension contribution to be deducted from your salary - this receives tax relief, ...but you pay national insurance on the contribution amount.

Another way is with salary exchange – this means your pension contributions are taken before you pay national insurance and income tax, ...so you pay less national insurance and income tax on your remaining salary.. Let’s have a look at a payslip to see how it works.

For example, say you have a before tax salary of £24,000 and you put £1200 (5%) a year of your salary into your pension without the salary exchange option.

 

As you can see, you actually only pay £960 a year into your pension, as you get 20% tax relief from the government, so that makes up the £1200 total going into your pension a year. (This doesn’t include any employer contribution).

Ater your pension, tax and national insurance have been deducted, your take home pay here gives you: £18,895.84 a year.

 

If you were to take the salary exchange option and you put: £1,411.76 a year into your pension, this means your salary is lower - so you pay less on income tax and national insurance. This means your take home pay is the same and you get £211.76 more going into your savings.

Your employer will save too, as they won’t have to pay national insurance on the amount that goes into your pension. Employers may even pass their NI savings onto you - meaning more money going into your savings.

If you are a higher rate taxpayer, you’ll get tax relief on your contributions immediately, so you won’t have to reclaim this through your tax return.

 

You will need to be aware though that since your monthly salary will be less, this could effect your entitlement to the State Pension, Statutory Maternity Pay or Life Cover.

 

Like any financial decision, salary exchange is not suitable for everyone, so you should speak to your employer to see how salary exchange could work for you.

If you don’t already have an adviser, you may be able to find one under www.unbiased.co.uk. You may be charged for this advice.

You can also speak to us here at Aviva. We have dedicated advisers on hand to answer your questions and help you decide if this will benefit you enough.