Group Flexible Retirement Plan

Transcription

1 Group Flexible Retirement Plan Key features illustration 4 Group Flexible Retirement Plan 1/20

2 We will send you a statement each so you can keep track of your benefits. Financial Conduct Authority is a financial services regulator. It requires us, Standard Life, to give you this important information to help you decide whether this Group Flexible Retirement Plan is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference. About this key features illustration It gives you information to help you for retirement. You ll find details about and tax in your Key Features Document. Key Features Document may refer to a personal illustration that you could request separately. rates used in these illustrations were correct at 06 April However, they can change at any time. What could my Group Flexible Retirement Plan be worth? To give you an illustration of what your benefits might be, the tables on the following pages give you examples of what you could expect when you retire. illustration shows how different choices and their could affect your retirement benefits. re are lots of options for you to choose from, and we have shown 3 of them here. You can get a personal illustration that suits your personal circumstances by calling Calls may be monitored to protect both you and us and help with our training. Call will vary. What could my cost? a summary Assuming you invest in the funds shown, you will be charged a percentage of the value a. See the section How all will reduce the return on your for examples of how much this could be. For general information about pension visit 2/20 Group Flexible Retirement Plan

3 Contents 7 Investing in the Linklaters Equity / Multi Asset Lifestyle Profile Table 1a shows what you could expect on retirement Table 1b shows how all will reduce the return on your 12 Investing in the SL BlackRock Managed (50:50) Global Equity Pension Table 2a shows what you could expect on retirement Table 2b shows how all will reduce the return on your 15 Investing in the Standard Life Deposit and Treasury Pension Fund Table 3a shows what you could expect on retirement Table 3b shows how all will reduce the return on your Group Flexible Retirement Plan 3/20

4 Important information about the figures they re estimates so your benefits could be very different - your value could be worth less than you paid in we can t predict future inflation and tax rates or how s will grow. Charges and rebates may also vary your taxable pension will also depend on interest rates when you retire We ve assumed: your regular payment will increase in line with your salary each your salary will increase at a rate of 4.00% each your taxable pension will be paid monthly from your retirement date until you die be paid for 5 s from the date it s first paid even if you die before the end of this 5 period increase in line with the Retail Price Index each not be paid to any dependant on your death 4/20 Group Flexible Retirement Plan

5 Important information about growth rates,, and inflation To help you understand the value of your in the future, we have allowed for inflation in our calculations. Some types of or savings s, for example a savings account or a cash ISA, do not take account of inflation, so may look more attractive than they actually are if you re comparing them to this illustration. growth rates we believe are appropriate for the funds in this illustration are shown in the table below. In line with Financial Conduct Authority rules, we have reduced all growth rates by 2.5% to allow for inflation. assumed growth rate varies depending on the mix of each fund. Other funds may have different assumed growth rates. Remember - funds showing higher growth rates might be more likely to beat inflation, but they may also be more likely to lose money. illustrations in this document show what your benefits might be when you retire, if your grows each at the assumed mid growth rates shown in the table below. Assumed Mid Growth Rate Ongoing Fund Charge Standard Life Passive Plus III Pension Fund SL BlackRock Emerging Markets Equity Tracker Pn Fd Standard Life Annuity Purchase Fund Standard Life Deposit and Treasury Pension Fund Standard Life Global Equity 50:50 Tracker Pension SL BlackRock Managed (50:50) Global Equity Pension 2.50% 1.029% 2.50% 1.195% 0.00% 1.008% -0.50% 1.008% 2.50% 1.007% 2.50% 1.005% Your employer s adviser has arranged special terms, so we will add extra units to your fund each month. agreed ly rate for calculating the extra units is 0.810% and we have assumed in this illustration that this level of rebate continues unchanged until retirement. Group Flexible Retirement Plan 5/20

6 Tax Relief Any employee include basic rate tax relief. For example for a 5% employee payment, you would pay 4% with the remaining 1% being basic rate tax relief. We ll claim this tax relief for you from HM Revenue & Customs and invest it in your. If you are a higher or additional rate taxpayer you ll need to claim the extra tax relief through your tax return. If you re paying through salary sacrifice, you can t claim tax relief on those, because you don t pay tax on the salary you give up. Lifestyle Profiling Lifestyle profiling means we ll automatically make changes between funds as you approach retirement. We ll do this gradually each month. For more information on Lifestyle profiles, please visit Or, if your employer has set up their own pension scheme website, you could get more information from there. 6/20 Group Flexible Retirement Plan

7 Investing in the Linklaters Equity / Multi Asset Lifestyle Profile What your benefits might be: To give an illustration of what your benefits might be, simply: 1. Choose the salary closest to yours from the list on the left hand side. This will identify which table you should use. 2. Next, find the age closest to your age now, and the age at which you want to retire. 3. This gives you an idea of what your taxable pension income each could be in today s prices, allowing for the effect of future inflation. figures are based on monthly. If your or your salary are more or less than shown then the illustrations can be adjusted proportionately. Table 1a - What your benefits might be Salary 35,000 Your age now % Retire at 65 2,650 2,190 1,790 1,430 1, Retire at 60 1,790 1,450 1, Salary 35,000 Your age now % Retire at 65 11,400 9,510 7,750 6,190 4,810 3,590 2,520 1, Retire at 60 7,770 6,320 5,040 3,910 2,910 2,030 1, Salary 60,000 Your age now % Retire at 65 4,540 3,760 3,060 2,450 1,900 1, Retire at 60 3,070 2,500 1,990 1,540 1, Salary 60,000 Your age now % Retire at 65 19,700 16,300 13,200 10,600 8,250 6,160 4,320 2,690 1,260 Retire at 60 13,300 10,800 8,640 6,700 4,990 3,490 2,170 1,020 Group Flexible Retirement Plan 7/20

8 Remember all of the figures in this table have been reduced by 2.5% a to allow for inflation. How all will reduce the return on your figures in table 1b are based on current salary of 35,000 increasing by 4.00% each a total monthly payment of 3.00% of salary a retirement age of 65 examples are for retirement at age 65. For retirement at age 60, add 5 s to your age just now for the columns that will apply to your. transfer value shown in column C assumes your grows at the mid rate each. It s also the amount available to buy a taxable pension if you re old enough. table shows that reduce the return on your. reduction from the amount shown at retirement in column B to the amount shown in column C means that take the average growth rate down. percentage this reduces to is shown in the Reduction in growth after are taken row at the bottom of each table. You can use the reduction in growth figures to compare between similar products. At end of difference between these 2 columns shows the effect of the A B C 1 1,024 1,050 1,050 What your costs - a summary In this example, assuming you invest in the funds shown, based on current assumptions you will be charged 0.2% of the value a. For general information about pension visit 3 3,044 3,270 3, ,026 5,680 5,650 Final Year 19,081 28,600 28,000 Reduction in growth after Charges will reduce the return on your by 1.9% to 1.7% 0.2% a In this example, allowing for the assumed growth on funds, 1.9% is the growth achieved if there were no and 1.7% is the growth achieved after allowing for 8/20 Group Flexible Retirement Plan

9 Table 1b (Linklaters Equity / Multi Asset Lifestyle Profile) Your age just now At end of Age 20 to Age 45 - illustrative values for s 1, 3 & 5* Age 50 A B C A B C 1 1,024 1,050 1,050 1,024 1,050 1, ,044 3,270 3,260 3,044 3,270 3, ,026 5,680 5,650 5,026 5,680 5,650 Final 14,517 19,500 19,200 Reduction in growth after Charges will reduce the return on your by 1.7% to 1.5% 0.2% a Your age just now At end of Age 55 Age 60 A B C A B C 1 1,024 1,050 1,050 1,024 1,040 1, ,044 3,270 3,260 3,044 3,220 3, ,026 5,680 5,650 Final 9,848 11,800 11,700 5,026 5,440 5,410 Reduction in growth after Charges will reduce the return on your by 1.4% to 1.2% 0.2% a 0.7% to 0.5% 0.2% a * For ages 20 to 45, the values for s 1,3 & 5 are the same for all ages Group Flexible Retirement Plan 9/20

10 Table 1b (continued) values in the final s for ages 20 to 45 are shown in the tables below. Your age just now At end of Age 20 Age 25 A B C A B C Final 41, ,000 99,700 37,160 84,600 80,800 Reduction in growth after Charges will reduce the return on your by 2.2% to 2.0% 0.2% a 2.2% to 2.0% 0.2% a Your age just now At end of Age 30 Age 35 A B C A B C Final 32,587 67,100 64,500 28,075 52,200 50,400 Reduction in growth after Charges will reduce the return on your by 2.2% to 1.9% 0.3% a 2.1% to 1.9% 0.2% a 10/20 Group Flexible Retirement Plan

11 Table 1b (continued) Your age just now At end of Age 40 Age 45 A B C A B C Final 23,586 39,400 38,400 19,081 28,600 28,000 Reduction in growth after Charges will reduce the return on your by 2.0% to 1.8% 0.2% a 1.9% to 1.7% 0.2% a Group Flexible Retirement Plan 11/20

12 Investing in the SL BlackRock Managed (50:50) Global Equity Pension What your benefits might be: To give an illustration of what your benefits might be, simply: 1. Choose the salary closest to yours from the list on the left hand side. This will identify which table you should use. 2. Next, find the age closest to your age now, and the age at which you want to retire. 3. This gives you an idea of what your taxable pension income each could be in today s prices, allowing for the effect of future inflation. figures are based on monthly. If your or your salary are more or less than shown then the illustrations can be adjusted proportionately. Table 2a - What your benefits might be Salary 35,000 Your age now % Retire at 65 2,830 2,340 1,900 1,520 1, Retire at 60 1,910 1,550 1, Salary 35,000 Your age now % Retire at 65 12,200 10,100 8,260 6,590 5,120 3,820 2,670 1, Retire at 60 8,290 6,740 5,370 4,160 3,090 2,160 1, Salary 60,000 Your age now % Retire at 65 4,850 4,010 3,270 2,610 2,020 1,510 1, Retire at 60 3,280 2,660 2,120 1,640 1, Salary 60,000 Your age now % Retire at 65 21,000 17,400 14,100 11,300 8,780 6,550 4,570 2,840 1,320 Retire at 60 14,200 11,500 9,200 7,130 5,300 3,700 2,290 1,060 12/20 Group Flexible Retirement Plan

13 Remember all of the figures in this table have been reduced by 2.5% a to allow for inflation. How all will reduce the return on your figures in table 2b are based on current salary of 35,000 increasing by 4.00% each a total monthly payment of 3.00% of salary transfer value shown in column C assumes your grows at the mid rate each. It s also the amount available to buy a taxable pension if you re old enough. table shows that reduce the return on your. reduction from the amount shown at retirement in column B to the amount shown in column C means that take the growth rate down from 2.5%. For terms of over 5 s or more, the percentage this reduces to is shown in column D. For the final figures which will apply to you, take your age now from your age at retirement to see which row in the table applies. You can use the reduction in growth figures to compare between similar products. difference between these 2 columns shows the effect of the What your costs - a summary In this example, assuming you invest in the funds shown, based on current assumptions you will be charged 0.2% of the value a. For general information about pension visit A B C D E At end of 1 1,024 1,050 1,050 Reduced Growth from 2.5% to: Charges will reduce the return on your by 3 3,044 3,270 3, ,026 5,680 5, % 0.2% a 20 19,081 30,400 29, % 0.2% a This column shows the number of s from the start of your to your expected retirement date This would be the row that applies if there are 20 s to retirement In this example, allowing for the assumed growth on the fund, 2.5% is the growth achieved if there were no and 2.3% is the growth achieved after allowing for Group Flexible Retirement Plan 13/20

14 Table 2b (SL BlackRock Managed (50:50) Global Equity Pension) A B C D E At end of Reduced Growth from 2.5% to: Charges will reduce the return on your by 1 1,024 1,050 1, ,044 3,270 3, ,026 5,680 5, % 0.2% a 10 9,848 12,500 12, % 0.2% a 15 14,517 20,600 20, % 0.2% a 20 19,081 30,400 29, % 0.2% a 25 23,586 41,900 40, % 0.2% a 30 28,075 55,400 53, % 0.2% a 35 32,587 71,300 68, % 0.2% a 40 37,160 89,900 86, % 0.2% a 45 41, , , % 0.2% a 14/20 Group Flexible Retirement Plan

15 Investing in the Standard Life Deposit and Treasury Pension Fund What your benefits might be: To give an illustration of what your benefits might be, simply: 1. Choose the salary closest to yours from the list on the left hand side. This will identify which table you should use. 2. Next, find the age closest to your age now, and the age at which you want to retire. 3. This gives you an idea of what your taxable pension income each could be in today s prices, allowing for the effect of future inflation. figures are based on monthly. If your or your salary are more or less than shown then the illustrations can be adjusted proportionately. Table 3a - What your benefits might be Salary 35,000 Your age now % Retire at 65 1,520 1,340 1, Retire at 60 1, Salary 35,000 Your age now % Retire at 65 6,600 5,820 5,070 4,320 3,590 2,870 2,150 1, Retire at 60 4,760 4,130 3,520 2,920 2,320 1,740 1, Salary 60,000 Your age now % Retire at 65 2,610 2,300 2,000 1,710 1,420 1, Retire at 60 1,880 1,630 1,390 1, Salary 60,000 Your age now % Retire at 65 11,300 9,990 8,690 7,420 6,160 4,920 3,690 2,460 1,230 Retire at 60 8,160 7,080 6,030 5,000 3,990 2,980 1, Group Flexible Retirement Plan 15/20

16 Remember all of the figures in this table have been reduced by 2.5% a to allow for inflation. How all will reduce the return on your figures in table 3b are based on current salary of 35,000 increasing by 4.00% each a total monthly payment of 3.00% of salary transfer value shown in column C assumes your grows at the mid rate each. It s also the amount available to buy a taxable pension if you re old enough. table shows that reduce the return on your. reduction from the amount shown at retirement in column B to the amount shown in column C means that take the growth rate down from -0.5%. For terms of over 5 s or more, the percentage this reduces to is shown in column D. For the final figures which will apply to you, take your age now from your age at retirement to see which row in the table applies. You can use the reduction in growth figures to compare between similar products. difference between these 2 columns shows the effect of the What your costs - a summary In this example, assuming you invest in the funds shown, based on current assumptions you will be charged 0.2% of the value a. For general information about pension visit A B C D E At end of 1 1,024 1,030 1,030 Reduced Growth from -0.5% to: Charges will reduce the return on your by 3 3,044 3,130 3, ,026 5,280 5, % 0.2% a 20 19,081 22,800 22, % 0.2% a This column shows the number of s from the start of your to your expected retirement date This would be the row that applies if there are 20 s to retirement In this example, allowing for the assumed growth on the fund, -0.5% is the growth achieved if there were no and -0.7% is the growth achieved after allowing for 16/20 Group Flexible Retirement Plan

17 Table 3b (Standard Life Deposit and Treasury Pension Fund) A B C D E At end of Reduced Growth from -0.5% to: Charges will reduce the return on your by 1 1,024 1,030 1, ,044 3,130 3, ,026 5,280 5, % 0.2% a 10 9,848 10,800 10, % 0.2% a 15 14,517 16,600 16, % 0.2% a 20 19,081 22,800 22, % 0.2% a 25 23,586 29,300 28, % 0.2% a 30 28,075 36,200 35, % 0.2% a 35 32,587 43,500 42, % 0.2% a 40 37,160 51,200 49, % 0.2% a 45 41,832 59,400 57, % 0.2% a Group Flexible Retirement Plan 17/20

18 Notes Where you can take a tax free lump sum, your entitlement is normally 25%. amount you ll be able to take may be different depending on your allowance on 5 April Please speak to your financial adviser. This illustration does not take account of the Lifetime Allowance. This is an HM Revenue & Customs limit on the total funds in pension s that can be used to give you benefits without having to pay a tax charge on the funds. Any reference to legislation and taxation is based on Standard Life s current understanding of law and HM Revenue & Customs practice as at April Legislation and taxation will change over time. Tax relief may be altered and the value to you depends on your financial circumstances. For more information on how much you should save for retirement, please speak to a financial adviser. re may be a cost associated with this. retirement ner tool on could give you useful information. Or, if your employer has set up their own pension scheme website, you could get more information from there. Glossary inflation - will make prices higher, so if you re going to for your future, you need to consider what your pension will be able to buy. We have reduced some of the values in this illustration to allow for this. For example, if prices rise by 2.5% a, in 10 s from now 10,000 will only buy you what 7,813 would buy you today. Using this example, we would show you the 7,813, not the 10,000. Ongoing fund charge - is the total of the fund management charge and additional expenses. If you want to see a breakdown, you ll find it at 18/20 Group Flexible Retirement Plan

19 Group Flexible Retirement Plan 19/20

20 Standard Life Assurance Limited is registered in Scotland (SC286833) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life Assurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. GSIP106LL Standard Life 20/20 Group Flexible Retirement Plan