Plan details
You are being offered the opportunity to join the NHS Stakeholder Pension - a Group Stakeholder pension plan provided by Phoenix Life Limited, trading as Standard Life.
It's important you make an informed decision so you should read the key documents at the bottom of this page.
And you can find answers to common questions in our FAQs
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How joining this plan will work
Choosing to join a top up pension plan
You will be invited to join this pension plan by your employer and you can choose to join at any time.
This type of pension plan aims to help you increase the amount of money you’ll have at retirement by letting you pay in more now, on top of your employer’s main workplace pension scheme.
This plan may not be suitable for all employees, particularly where small amounts of pension savings might affect entitlement to means tested State benefits.
What you need to do
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Make sure it's right for you
Paying into a company pension can be a great way to save for the future - especially since you get tax benefit on your payments. But you may decide it's not right for you and you don’t have to join if you don’t want to.
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Decide how much to pay in
It's up to you how much you pay in as long as you meet the minimum amount set by your employer. If you want to make any changes to your payments, - ask your employer about how and when you can do this.
Payment options for this plan
You can make regular monthly payments into this plan. You can also make single payments at any time. You can change the amount of your regular payments at any time, subject to:
- Our minimum payment level
- Any requirements set out by your employer
Details of the minimum payments are available from your employer. You can stop making payments at any time, or take a payment break and restart them again later if you're still eligible.
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How payments are made
Payments into your pension plan will be taken from your after-tax earnings. This means your employer will deduct your payments from your after-tax earnings and pay them to Standard Life on your behalf. The government then adds tax relief on top of your payment - boosting the amount that gets paid into your pension plan. Tax relief will be applied at the basic rate of income tax so if you normally pay more tax, you'll need to reclaim this from the government manually.
Pension allowances
There's a limit to the amount that can be paid into your pension plans each tax year without paying a tax charge - for most people this is normally 100% of your earnings, capped at £60,000. But in some circumstances it could be lower.
Lifetime allowance
Up until 5 April 2024 the Lifetime Allowance was the maximum amount of pension savings you were allowed to build up during your lifetime and take some of the benefits tax-free.
The limit for the 2023/24 tax year was £1,073,100 but could be higher if you are registered for any form of Lifetime Allowance Protection.
From 6 April 2024 onwards the Lifetime Allowance was replaced with limits on the tax-free benefits instead.
It’s important that you understand how these changes may affect your retirement planning.
Lump Sum Allowance and Lump Sum and Death Benefit Allowance
From 6 April 2024 onwards HMRC have placed limits on the amount of tax-free benefits that can be taken from pension schemes both during your lifetime and on your death.
The standard Lump Sum Allowance is £268,275 and the standard Lump Sum and Death Benefit Allowance is £1,073,100. These allowances reduce each time you take benefits.
If you hold one or more of the Lifetime Allowance Protections given by HMRC then you will be entitled to higher allowances that reflect this.
We’ve created Questions and Answers to help explain the changes and you can visit the HMRC gov.uk/tax-on-your-private-pension.
These allowances aren't an issue for most people, but it's a good idea to check. For more information download our Guide to tax relief, limits and your pension (PDF 359KB).
Opting out
It's your choice whether you join this pension plan or not. So there's no need to opt out, because you won't become a member unless you apply. If you decide not to join now, you can ask to join in the future. Just speak to your employer about next steps.
You can change your mind after you join the plan by stopping your payments, but you won't get any previous payments refunded.
Investment choices and charges
Important documents
These documents will help you understand how this plan works, so you can decide if it's right for you. It's a good idea to keep or save a copy of each one.
A guide to your pension
A "Welcome" guide to the NHS Stakeholder Pension and the available investment options, including with-profits.
Product Information
Read these documents to understand the features of your employer's pension plan in detail.