What if

I work part time

How will my pension contributions be affected?

Both your pension contributions and Pearson’s contribution will be based on your new salary. If your salary changes because of a change in working hours, the contributions will be revised at the date of the change.

Val's scenario:
Val’s full-time pensionable salary was £36,000 a year. She moved to 60% job-share on a new annual salary of £21,600. Based on her contribution rate of 5%, her monthly pension contributions reduced from £150 to £90. As a member of the MP03 section of the Plan, Pearson’s double matching contributions also reduced from £300 per month to £180 per month.

How will my Pension Pot be affected?

Your benefits at retirement depends on how much money has built up in your individual Pension Pot in the Plan. The value of your Pension Pot at retirement will be lower if you move from full-time to part-time working, simply because your contributions and those of Pearson will be lower because you are earning less.

Will my additional voluntary contributions (AVCS) be affected?
No, your AVCs won’t be affected. However if you do reduce your hours your pensionable earnings may also reduce and therefore the total savings that you are making will also be reduced.

Please bear in mind that your total pension contributions are subject to HMRC’s Annual Allowance (AA).

Still have questions?

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