An introduction to your new workplace pension

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Presentation transcript:

An introduction to your new workplace pension Name | Position Date

What’s today about? What is auto enrolment? Why is this happening? How does this affect me? When will I be auto enrolled? How much will it cost me? When and how can I take the benefits? What if I don’t want to join the pension scheme? Who is NOW: Pensions? Questions

What is auto enrolment? New government legislation relating to workplace pensions Requires all employers to automatically enrol specific groups of their employees into a workplace pension scheme For (insert employer name), the implementation date for auto enrolment is (insert staging date) Introduced 2012.

Why is this happening? The full basic state pension is currently £159.55 per week for a single person (depending on circumstances and National Insurance record) This is payable from State Pension Age The government’s aim is to get more people to have another income, on top of the State Pension, when they come to retire Employers will enrol their employees automatically into a workplace pension scheme to make it easier for people to start saving The age at which you can claim State Pension is changing. It is currently 65 for men. State Pension age for women is gradually increasing from 60 and will reach 65 by November 2018. State Pension age for both men and women will then increase to 66 by October 2020 and after that to at least 68.

How does this affect me? (insert employer name) are required, by law, to automatically enrol you into a workplace pension scheme if you: are aged 22 or over are under State Pension age earn more than £10,000 a year (£833 per month) and work or usually work in the UK This makes you an ELIGIBLE employee

What if I’m not ELIGIBLE? You will receive a personal communication explaining what you need to do if you wish to opt in. You could be: NON ELIGIBLE ENTITLED Be invited to join the scheme if you wish (opt in) Non eligible – your employer will pay too.

When will I be auto enrolled? (insert employer name) will implement your workplace pension scheme with effect from (insert staging date) Employees will be auto enrolled, and pension contributions deducted, with effect from (insert end of postponement period, if using postponement) Your employer is using Postponement

How much will it cost me? 5% 3% 3% 2% 1% 1% Contributions will be taken directly from your pay at every payroll run. A percentage of your pay will be deducted and transferred into your pension pot meaning that if you pay income tax, you will benefit from tax relief. In addition, (insert employer name) will pay a percentage of your salary on top, and into your pot. Up to March 2018 April 2018 to March 2019 From April 2019 5% 3% Employer contribution 3% Employer contribution 2% Employer contribution 1% Employee contribution 1% Employee contribution Employee contribution

When and how can I take the benefits? You can currently retire from the age of 55 Your options are: Take 25% of your fund as a lump sum and the remaining monies can be used to purchase an annuity (guaranteed income for life) Take 25% of your fund as a tax free cash lump sum and the remainder will be taxed at your marginal rate of income tax for the tax year Take 25% of your fund as a lump sum and the remaining monies can be used to purchase an income drawdown product. Your pension fund will remain invested while you draw an appropriate income from it each year.

What if I don’t want to join? You will receive a personal communication explaining what you need to do if you wish to opt out BUT….consider this carefully Every £20 going into your pot has only cost you £8!

Who is NOW: Pensions?

Who is NOW: Pensions? High quality Full transparency Value for money NOW: Pensions is a UK multi employer trust Member focused Their mission is to give everyone in the UK the possibility of a better retirement Supported by ATP, Denmark’s leading pension provider High quality Full transparency Value for money ATP – gap in market for cost efficient, simple pensions with investment funds that perform …

Trustee Board – Master Trust Governance Nigel Waterson Chair and former Shadow Pensions Minister Jocelyn Blackwell Founder of Dunnet Shaw and Raising Standards in Pensions Administration Christopher Daykin The Former Government Actuary Lord Monks Member of House of Lords and Former General Secretary of ETUC and TUC Win Robbins Former Head of European Fixed Income, Barclays Global Investors and Credit Suisse Asset Management Independent with a depth of experience to provide rigorous governance.

We align our interest to yours All NOW: Pensions employees are in the same pension as you!

Key drivers to a good pension outcome Contributions paid in Member returns Cost and charges Transition into retirement

0.3% of Assets Under Management The lower the charges, the more you save Administration charge: £1.50 per member per month Annual Product Investment Management charge: 0.3% of Assets Under Management + Deferred member charge needs updating. No minimum contributions – huge fairness and cost advantage over time for members Reduced administration charges apply, until 30th Sept 2018, for those earning less than £18,000 per year £0.30 from now until 30th Sept 2017 and £1 from 1st Oct 2017 to 30th Sept 2018

Glidepath into retirement Diversified Growth Fund Return Target: Cash +3% Retirement Countdown Fund Return Target: Cash

Recent performance 10.8% 7.3% 10.2% 6.8% 3.5% 3.4%

Recent performance 7.6% 13.5% 13.8% 5.6% 3.5% 3.4%

Recent performance 7.3% 10.8% 10.2% 6.8% 3.5% 3.4%

Recent performance 17.2% 7.6% 13.7% 13.5% 3.4% 3.5%

What happens next? Your auto enrolment journey explained Annual statement (email sent when it’s ready to view online) E-mail notification E-mail notification Welcome email Within 6 weeks 3 months before Auto enrolment begins Ongoing A notification is sent to you letting you know your pension scheme will start in 3 months. You are auto enrolled into a pension. This is when you will start to see contributions made by both you and your employer on your payslip. All the information you need, supplied in an easy to understand way. Watch your pension perform by viewing your annual statement. If you want to transfer other pension pots in, you can do so online or call us on the number below. This slide should be used if employer is using Postponement. Don’t want to wait? Details sent on how to opt in Want to opt out? Details sent on where to go online, call, or write to us

What happens next? Your auto enrolment journey explained Annual statement (email sent when it’s ready to view online) E-mail notification E-mail notification Welcome email Within 6 weeks 3 months before Auto enrolment begins Ongoing A notification is sent to you letting you know your pension scheme will start in 3 months. You are auto enrolled into a pension. This is when you will start to see contributions made by both you and your employer on your payslip. All the information you need, supplied in an easy to understand way. Watch your pension perform by viewing your annual statement. If you want to transfer other pension pots in, you can do so online or call us on the number below. This slide should be used if employer is NOT using Postponement. Don’t want to wait? Details sent on how to opt in Want to opt out? Details sent on where to go online, call, or write to us

Postponement email Issued by email to you

Welcome Joiner email Login On joining/when enrolled Welcome email with login to secure online account Contact information via email and helpdesk Welcome Login Issued by email

In summary – What do we get? Simple and transparent pension High quality investment solution Supported transition to retirement Your own online member account and helpline Low and transparent costs We live and work by our set of principles, never forgetting that it’s your money and your future we go to work to grow and protect. So, here’s our promise to our members. We promise to… Stay simple Stay transparent Stay responsible State of the art managed, diversified growth fund Retirement protection Protecting your future retirement income (life cycling with annuity hedge) Affordable life assurance Protecting you from the impact of retiring in bad times Your money is being invested with prudent risk giving long term stable returns Transfer in/out Life insurance Tax efficient? affordable life assurance if you want Easy for employers Easy compliance with auto enrolment Easy technical integration with payrolls Easy fit with your remuneration and HR strategy Flexible branding Branding to fit your communications strategy Simple communication Simple, easy to understand communications Easy for employees Online and straight through processing with paper where needed The only decisions you need to make are how much you contribute and when you plan to retire Full online member services and call center Future proofing additional workplace savings products One charging structure One transparent charging structure for all Your contributions are not being eaten by unnecessary costs

Want to know more? www.nowpensions.com About NOW: Pensions About auto enrolment How we invest your funds And much more

NOW: is the time for a better pension

Any questions? nowpensions.com 0 330 100 3336 NOW: Pensions Limited, Registered in England and Wales. Registered office NOW: Pensions 2nd Floor, 25 Christopher Street, London, EC2A 2BS. Company number: 07766398, VAT number: 127894966. NOW: Pensions is a UK occupational pension plan. Membership is only available through an employer, following satisfactory checks on the employer. This is written as a general guide only. It should not be relied upon as a substitute for specific professional advice. Please note past performance is not a guarantee of future returns. MM00039.0415/5