If you’re considering stopping payments to your pension plan, we’ll be happy to help. It’s important to note that once we’ve been told what you’ve decided to do, you may not be able to change your mind. Please be sure you understand all your options, and the effect of any changes you make. There are a few things you should think about before you make any decisions.
If you have waiver of premium with your plan and you’re unable to work through illness or accident, you may be able to apply for your payments to made on your behalf. Please call so we can talk to you about this in more detail.
If you have any questions once you’ve read this summary, or need any help understanding your options, either speak to your HR department or call us on 0808 234 3030, or +44 178 644 8844 if you’re calling from abroad. We might record your call for training and quality purposes. To find out more about how we use your personal data please visit pru.co.uk/mydata.
There’s a variety of pension plans available. They’re designed to provide a tax-efficient way of helping you to build up a pension pot to provide for your retirement.
Payments might be made into your plan by you, your employer, or both of you. Pension plans offer tax relief on your payments, subject to certain limits.
Your money will be invested in funds looked after by fund managers, who try to achieve the best returns possible. Any growth in your plan will be largely tax-free too. A charge is taken for managing your plan. Details of your fund choices and charges can be found in your annual statement. If you don’t have your annual statement or you’ve lost it, you can request a new one. Just call us.
In most cases, when you take your benefits, you can take up to 25% of your plan tax-free and the remainder will be taxable.
You might need to pay tax depending on your circumstances and the options you choose. Tax rules can also change in the future. You may want to seek advice.
These vary depending on the plan you have. To find out what options you have speak to your HR department or give us a call. Your options could include:
Alternatively you could consider changing the amount you pay.
There are a few things you should think about before you stop making payments:
In the meantime, your plan will continue to be invested in the funds you’ve chosen, and you will be able to change where it’s invested.
Remember, the value of your investment could go down as well as up so you might not get back the amount you put in.
Fraudsters are always out there and constantly changing their tactics. So if you’re thinking of reinvesting the money from your plan, take a minute to find out more, and stay ahead of the scammers. There is also some very useful information available from The Pensions Regulator.
We can’t give you advice or make your decision for you, but we’ll be happy to help you understand your plan and talk you through all your available options and their possible implications.
If you have any questions or need more help understanding your options, you can either speak to your HR department, or contact us on 0808 234 3030 or +44 178 644 8844 if you’re calling from abroad. We’re here 8:30am - 6pm Monday to Friday (except bank holidays) and happy to help in any way we can. Please make sure you have your plan number to hand when you call.
Alternatively, speak with a financial adviser - if you don’t have one, you can get details of financial advisers in your area at pru.co.uk. You may be charged for their services.