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Get more for your money saving into a pension

When you’re young, saving for the future might not seem like a priority. Did you know that the maximum you can currently get from the State Pension is only £221.20 per week? Is this enough for you to enjoy the retirement you want?

The earlier you start planning for your future and the money you’ll need in retirement the better. Pensions might seem complicated, but they don’t have to be. They are an efficient way of saving for the future and ensuring your financial security.

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Why should I save into a pension?

Even though your retirement may seem a long way off, the sooner you think about what you will be doing in the future and how you will pay for it, the better prepared you will be for the time when you want to stop working.

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When can I draw my pension?

You can take your pension at any time from the age of 55, increasing to 57 from 2028. The Scheme’s Normal Retirement Age is 65, however the choice of when to retire is up to you. You can check your State Pension age by going to https://www.gov.uk/state-pension-age. So, plan ahead and see if you need to start saving extra now for your life after work.

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How does my pension grow?

Your contributions are paid into your individual Pension Account and the money is invested according to your investment instructions. The aim is to grow the value of your pension over time to provide you with a sufficient fund for your retirement benefits.

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How much does it cost?

You are not required to contribute to the Scheme, however it’s important to remember that the more you save now, the higher your Pension Account is likely to be at retirement.

The Bank will make a contribution to your Account each month and will pay all costs associated with the running of the Scheme. You can make Additional Voluntary Contributions (AVCs) as a fixed monthly amount or a one-off payment subject to restrictions. You can find out more information by visiting the contributions section or using our Pension Planner tool to see how your retirement fund may be impacted by what you pay in.

You will receive income tax relief on any contributions you pay and if paid via salary sacrifice you will also receive National Insurance relief.

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What happens if I leave the Bank or opt out of the Scheme?

If you have been a member of the Scheme for more than 30 days, then your Pension Account will remain invested in the Scheme until you decide to use your pension with the Bank when you retire or transfer it to another scheme. Don’t forget, you can keep track of your investments by logging in to your pension portal at any time and we’ll send you a benefit statement every year.

Remember to let the Scheme know if your details or personal circumstances change, for example if you move to a new house or get married. It’s also important to keep your Nomination Form up to date to let the Trustees know who should receive your pension benefit should the worst happen.

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