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 THIS IS NOT TRUE. company pension Joining the Scheme scheme it stops you will NOT AFFECT your entitlement to the basic getting the basic State State Pension later in pension. 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 After retirement Your ‘savings pot’ or Your income for life ‘Retirement Account’

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 The Company You wish to pay Total payment will pay 1% 2% 3% You’d be a nut to pass 3% 3% 6% this up! 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. 100% 3% 6% 10% 11% 16% 90% 20% Money Market 25% 30% Fund 80% 40% 50% 50% 50% 70% 55% Pre-Retirement 45% Percentage 60% Fund 60% 40% 65% 35% 50% 70% Diversified Return 30% 40% Fund 25% 75% 21% 30% 50% 50% 17% Passive Global 45% 20% 40% 12% 35% Equity (inc. UK) 30% 25% Fund 21% 7% 10% 17% 12% 7% 0% Years to Target Retirement Date But you can change this once you have joined to one of the other lifestyle options or self select funds.

Other Investment Options • In addition to the Lifestyle Passive Active 10 Year, the Trustee has Diversified Global Global Return made available a range of Equity (inc. Equity (inc. Fund funds in which you can UK) Fund UK) Fund invest your Retirement Account. Pre- Pre- Retirement Money Retirement Inflation Market • You can split your Fund Linked Fund Retirement Account Fund across any combination of these funds. Emerging Ethical Shariah Markets Fund Fund • Or, you can invest in one Fund of the Lifestyle options.

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 • If you joined the Company before 30 June 2012 your death in service So, for a contribution of cover will be 2 x Salary as little as 1% of your basic pay, you could provide a valuable • If you joined the Company after 1 benefit for those you care about. 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.

Important Contacts Kingfisher Group The Pensions Pension Tracing Pensions Advisory Service Service Department 08456 012923 08456 002537 08456 807060 The Pensions Service www.pensionsad www.gov.uk\find- pensions@kingfis visoryservice.org. 08453 000168 lost-pension her.com uk www.gov.uk/brows e/working

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.