Group Personal Pension (GPP)

There’s no guarantee that one investment will perform any better than another. So in making your decision, you should consider the following.

Your personal investment profile

• Your comfort with balancing investment risk and reward.
• Your level of investment knowledge.
• How long you plan to stay invested.
  

Fund-specific considerations

• Switching out of the With-Profits Fund could result in a Market Value Reduction (MVR) reducing the amount switched out.
• Charges may differ between funds.
• You may lose any guarantees, benefits and options on your existing investments.
• If you’re invested in - or have access to - a Lifestyle option you should think about how and when you plan to take your benefits. This option automatically moves your investment into less risky funds, as you get closer to taking your benefits. If you’d like to know more, just give us a call. 
• If you’re invested in a combination of With-Profits and a Lifestyle option, please get in touch before making any decisions about switching.
  

Time and processing

• In some circumstances your switch instruction could be delayed. We’ll let you know if this applies.
• Any changes you make will be applied to all future payments unless you tell us you want to change your choice again.

Before making changes to your payments, keep the following in mind:

• Impact on benefits – Varying your payments will affect the amount available when you take your benefits.
• Employer contributions – If your employer also makes payments, these might be affected. Speak to your employer for guidance.
• Charges – Charges applied to your plan may change.
• State or salary-related benefits – Changes could impact benefits you may be entitled to.
• Tax relief – The amount of tax relief depends on what you pay. Reducing payments may mean losing out on tax relief.
• Tax allowances – You could exceed your annual or lump sum allowance, resulting in a tax charge.
• Additional benefits – Life cover or other benefits could be affected.
• Restrictions – Depending on your plan and proximity to retirement, it may not be possible to increase payments to the With-Profits Fund.
• Monitoring your plan – Keep track of your plan through your Annual Benefit Statement (ABS).

Transferring-in

• You may be able to transfer pensions from other providers into this pension.
• Please speak to your pension provider(s) before you do this.
• You may lose important guarantees and benefits, and additional charges may apply.

Transferring-out

Before transferring your pension plan to another provider, it’s important to understand the potential impact.

• Loss of benefits – Any guarantees, benefits and options under your existing plan may be lost, which could affect the benefits you receive.
• Employer contributions – You may lose out on future employer contributions.
• Different features – The features and investment options of another plan may differ. Consider whether they meet your needs.
• Charges – Charges may be higher or lower than those you pay now.
• Performance – There’s no guarantee another plan will perform better than your current plan.
• With-Profits Fund – Transferring out could result in a Market Value Reduction and loss of future bonuses.
• Transfer delays – Transfers can take time, which may lead to a temporary loss of investment growth while your money is not invested.
• Exit charges – There may be an exit charge for leaving your plan.
• Irreversible decision – You may not be able to change your mind once the transfer is complete.
• Investment risk – The value of investments can go down as well as up, so you might not get back the amount you put in.
• Transfer value – The transfer value of your plan may not be the same as its current value. Ask us for a transfer value before making your decision.

Before you decide to stop making payments, consider:

• Reduced benefits – The amount available to provide benefits will be lower than expected.
• Loss of additional benefits – You will lose any extra benefits, such as life cover or Waiver of Premium.
• Restarting payments – You may not be able to restart payments once they stop.
• Charges – There may be changes to charges or additional charges. Existing charges for managing your plan will continue until you take your benefits or transfer elsewhere.
• Employer contributions – If your employer also makes payments, these will stop. Speak to your employer for guidance.
• Impact on other benefits – There could be an effect on any state or salary-related benefits you may be entitled to.
• Future decisions – You may need to decide what to do with your plan. For example, it may need to be transferred if you stop payments permanently.
• Investment continuity – Your plan will remain invested in your chosen funds, and you can still change where it’s invested.