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About

The tools available on MyPensionTools are for general guidance only. Please make sure that you understand how they work and their limitations before using them.

MyContributionsCalculator does not take into account any alternative methods of retirement savings such as ISAs or stakeholder pensions. You are responsible for carrying out your own investigations before deciding how much to contribute to your pension account.

You should take independent financial advice if you are not sure what to do, or want specific advice about your personal circumstances. You should also bear in mind that there are many issues to consider when deciding how to save for retirement, and the figures provided by MyContributionsCalculator should only be one aspect of that consideration.

This is your annual reference basic salary at 1 April each year up to a maximum of £141,000 (2020/21 tax year).

The Plan is non-contributory, although you can choose to make your own contributions through Flexible Benefits during the annual enrolment period. You can contribute between 1% and 6% of your pensionable salary as Flex matched pension contributions and the Company also pays a 1:1 matching contribution according to the rate that you pay.

If you wish, you can pay more than 6% of your pensionable salary as Flex additional contributions, or as a quarterly lump sum AVC payment (during Additional Voluntary Contribution windows). Flex additional contributions are payable for a full Benefit Year and do not attract Company matching contributions. You get full tax relief on all your contributions up to certain limits.

The standard Company contribution rate is 6% of pensionable salary before matching contributions. Some members are entitled to alternative legacy contribution rates but for the purposes of this illustration a flat rate of 6% has been assumed.

The net cost to you, Company contributions and the amount invested in your pension account (including tax relief) each month are all estimates. These estimates are based on the information you enter and tax rates for 2020/21, and assumes:

• you have the standard Personal Allowance for income tax purposes of £12,500 for 2020/21.

• your annual pension contributions do not exceed your Annual Allowance. If they do, you will be subject to an additional income tax liability. These calculations do not allow for this additional tax, which would serve to increase the cost to you.

• you are over age 21 (or over age 25 if an Apprentice) and have not yet reached your State Pension Age and that you currently pay 'Class 1A' National Insurance Contributions’.

If your earnings exceed £240,000 a year (2020/21 tax year) you will be affected by a reduction in your Personal Allowance for income tax purposes. These estimates do not allow for this reduction so the actual cost to you may be less than the estimated cost shown.

MyContributionsCalculator takes into account certain Plan and Revenue limits. For example, it limits your pensionable salary to a Plan specific earnings cap of £141,000 (2020/21 tax year).

You should also remember that tax relief on your contributions depends on your individual circumstances, current tax rates, and the annual allowance for pension contributions, all of which may change in the future. Neither the calculator nor the budget planner take into account your personal tax position including any tax changes that may arise under legislation.