Occupational Pensions

How occupational pension schemes work

Every payday, a percentage of the employee’s pay is deducted automatically from their salary or wages and invested in the scheme. The employer also contributes to the scheme on the employee’s behalf as does the government in the form of tax relief.

Two types of scheme

In a ‘defined contribution scheme’, the employee’s retirement income is based on the contributions made, whereas in a defined benefit scheme, the employee’s pension income is based on his or her salary and length of service with the employer. Most occupational pension schemes are defined contribution schemes.

What happens if the employer goes out of business?

Most defined contribution schemes are managed by insurance companies not the employer, so employees’ pension pots should not be affected. If the scheme is a trust-based scheme, employees will still get their pensions, although not as much because the scheme’s running costs will be paid out of members’ pension pots rather than by the employer.

Auto Enrolment

Under ‘Automatic enrolment’ rules, any employer (with at least one member of staff) must automatically enrol every employee between the age of 22 and State Pension age and earning in excess of £10,000 a year (2023/24) into a 'Workplace pension scheme'.

Contribution costs

The minimum contribution for employers is 3% of the employee’s earnings, whilst employees are obliged to contribute at least 4% or 5% of their earnings before tax, depending on the scheme criteria.

PENSION ENQUIRY FORM

TitleMrMrsMissMs

Best time to call - Please SelectMorningAfternoonEvening

Your Address

Planning and Retirement

Contribution frequencyMonthlyAnnually

Employment

StatusEmployedSelf EmployedNot Employed

Existing Pension

Do you currently have a pension provision

Yes

No

Member of your employers pension scheme?

Yes

No

What is your attitude to riskLowLow to MediumMediumMedium to HighHigh

Marketing Information

How did you hear about usSearch EngineExisting ClientFrom FriendSaw AdvertisementOther

Sensitive Personal Data

We may need to collect sensitive personal data including information about your health, ethnic origin, or criminal prosecutions from third parties such as employers and credit reference agencies, fraud prevention agencies and other similar organisations in order to provide you with the services, for example where you require advice on annuity or protection products.

If you consent to us obtaining your sensitive personal data from third parties referred to above for the purpose of providing you with the services, and sharing it with third party providers to obtain quotes on your behalf, for example where we are providing you with annuity or protection advice as part of our services, please tick this box.

Submit your Information

From time to time, we would like to contact you about our products and services which we think you might be interested in. If you consent to us contacting you for this purpose please tick to say how you would like us to contact you.

How should we contact you?

Email

Telephone

Post

Yes please, I'd like to hear about offers and services.

No thanks, I don't want to hear about offers and services.

Please tick this box to confirm you have read and understood our privacy statement.