Well help explain the benefits Introduction This module will - - PowerPoint PPT Presentation

We’ll help explain the benefits

Introduction

This module will cover:

• The benefits of joining
• How the Kingfisher Pension Scheme – Money Purchase

Section (or ‘the Scheme’ for short) works

• How much it will cost
• Investment choices & other benefits
• What you could expect when you come to retire
• How do I join?

Myths

Some people believe that if you join a company pension scheme it stops you getting the basic State pension. THIS IS NOT TRUE. Joining the Scheme will NOT AFFECT your entitlement to the basic State Pension later in

• life. If anything it will

help you ‘Save for Your Future’.

Benefits

The Scheme offers:

• 4 x Salary Death in Service cover
• Company Contributions of up to 14%
• Total Incapacity benefits
• A range of investment options
• Online access to your pension scheme Retirement Account,

pension planning and modelling tools

• The knowledge that you are taking steps to save for your

future.

How Does the Scheme Work?

Before retirement Your ‘savings pot’ or ‘Retirement Account’ After retirement Your income for life

How Does the Scheme Work?

The value of your Retirement Account or “pot” on retirement will depend on…

• The contributions you pay (don’t forget tax relief)
• The contributions paid by the Company on your

behalf

• Investment performance
• The length of time you contribute
• Any investment charges applied to your “pot”.

How Much Will it Cost?

The minimum contribution percentages are:

The Different Contribution Rates

You’d be a nut to pass this up!

You wish to pay The Company will pay Total payment 1% 2% 3% 3% 3% 6% 4% 4% 8% 5% 5% 10% 6% 6% 12% 7% 10% 17% 8% or more 14% 22% or more

SMART Pensions

Lifestyling

Once you join, your Retirement Account will automatically be invested in the Lifestyle 10 Year. But you can change this once you have joined to one

• f the other lifestyle options or self select funds.

50% 50% 45% 40% 35% 30% 25% 21% 17% 12% 7% 50% 50% 45% 40% 35% 30% 25% 21% 17% 12% 7% 10% 20% 30% 40% 50% 55% 60% 65% 70% 75% 3% 6% 11% 16% 25%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Percentage Years to Target Retirement Date Money Market Fund Pre-Retirement Fund Diversified Return Fund Passive Global Equity (inc. UK) Fund

Other Investment Options

• In addition to the Lifestyle

10 Year, the Trustee has made available a range of funds in which you can invest your Retirement Account.

• You can split your

Retirement Account across any combination

• f these funds.
• Or, you can invest in one
• f the Lifestyle options.

Passive Global Equity (inc. UK) Fund Active Global Equity (inc. UK) Fund Diversified Return Fund Pre- Retirement Fund Pre- Retirement Inflation Linked Fund Money Market Fund Ethical Fund Shariah Fund Emerging Markets Fund

Additional Benefits

• You can also pay towards an additional benefit

in the event that you need to retire early on the grounds of total incapacity

• In the event that you retire due to total

incapacity, this benefit will pay a lump sum into your Retirement Account to be used to provide you with an additional retirement income

• The lump sum payable is a multiple of your

salary dependent on your age.

Don’t Forget The Death in Service Cover

So, for a contribution of as little as 1% of your basic pay, you could provide a valuable benefit for those you care about.

• If you joined the Company before

30 June 2012 your death in service cover will be 2 x Salary

• If you joined the Company after 1

July 2012 your death in service cover will be 1 x salary

• However, as an active member of

the Scheme your death in service cover will go up to 4 x salary.

What will I Get on Retirement?

On retirement you will have several options, but two of these are:

• Use the value of your Retirement Account

to buy an annuity, which is a pension paid by an insurance company Or

• Take up to 25% of your Retirement Account

as a tax-free cash sum, and use the balance to buy an annuity.

Remember…

How much income you receive from an annuity will depend on:

• The value of your retirement account at the time you retire
• The cost of buying an annuity from an insurance company
• The type of annuity you buy
• Your age when you buy your annuity – generally the younger

you are when you retire, the less you will receive

• Your health or lifestyle
• Where you live.

Online Access

You can:

• Review the contributions paid in

by you and the Company

• Review the value of your

Retirement Account

• Review your investment options
• Review the performance of your

funds

• Use the pension planning and

modelling tools.

How do I Join?

• If you meet the eligibility criteria

you will be Automatically Enrolled Or

• You can join voluntarily at any time

simply by completing a Joining Form.

Kingfisher Group Pensions Department 08456 807060 pensions@kingfis her.com Pension Tracing Service 08456 002537 www.gov.uk\find- lost-pension The Pensions Advisory Service 08456 012923 www.pensionsad visoryservice.org. uk

The Pensions Service 08453 000168 www.gov.uk/brows e/working

Important Contacts

Kingfisher Pension Scheme Trustee

This module was developed by Kingfisher Pension Trustee Ltd to help you better understand the pension scheme and related

• subjects. Please have a look at

the other modules to see if they could also be of benefit to you.