What is a pension?
One day you’ll want to or need to stop working and retire. However, when you’re no longer working you’ll also stop receiving a wage. At this point you’ll need an income to help pay for food, fuel and fun. That’s where a pension comes in. A pension helps you save for retirement and provides you with an income when you’re older.
How does it work?
A pension is simply a tax free method of saving for your retirement. Money is paid in free of tax. The money then grows free of tax. At retirement most of the money built up is then used to buy an income. You get tax relief on any contributions you make to your pension. This means that if you pay the basic rate of income tax, and you save £50 per month, you get £62.50 paid into your pension.* In the case of EasyBuild, we claim the additional £12.50 from HM Revenue & Customs. If your employer has set up your EasyBuild pension for you, they may be putting money into your pension as well – doubling your contribution.
Who can have an EasyBuild pension?
EasyBuild is available to anyone whether employed, self-employed or not employed.
What are the charges?
We do not charge an up-front cost for managing your pension. All your payments are 100% invested. The cost of administering your pension is known as the Annual Management Charge (AMC) is applied and is charged as a percentage of the value of your pension fund each year and is reflected in the unit price of the fund. The charge varies depending on how much money is in your fund, for more details see our EasyBuild Product Guide and Key Features
What income might I receive?
You can use the The Money Advice Service's calculator Alternatively, please contact us if you would like a personal illustration.
How can I keep track of my pension?
We will send you a statement each year in the month after your birthday. It will show the payments into your policy, the current value of your pension fund and an estimate in today’s monetary terms of the likely annuity you will receive at your chosen retirement date. You can ask us for a statement or illustration at any time.
* Based on current tax treatment which could change in the future