What will I have to live on?
Using the Money Advice Service’s pensions calculator you can see how much you might get in the future based on what you and Pearson contribute now, work out if you can afford to save more, and see the difference it could make in later life. 

If you are in the AE Section of the Plan then the benefits are less generous. Read How to join the Plan to see if you are eligible to join the MP03 Section and for a comparison of the benefits in the two sections.

How much will I need?

Have you thought about how much money you will need to live comfortably in later life? Have you got plans to travel or pay off your mortgage? Do you know if you are on track to afford the life you want? You will need to consider the following:

  • When you want to take your benefits
    The Plan’s normal retirement age is 62. If you do not intend to retire at age 62 you need to choose your selected retirement age (SRA). This is the date you want to take your retirement benefits. It is important that you let us know your SRA as there can be important decisions to make as you count down to your retirement age.

  • Choosing your retirement age
    This is especially important if you are invested in one of the three lifecycle options, as your SRA will determine when your funds need to switch to lower risk investments. If you would like to change your SRA, please download the SRA form here.

  • Your State Pension
    The current State Pension is £168.60 a week for the 2019/20 tax year if you have at least 35 years of full National Insurance contributions. However, if you have been ‘contracted out’ of the State Pension at any time, the amount of State Pension you receive may be reduced in certain circumstances. You can get an estimate of your State Pension from www.gov.uk/check-state-pension



By starting to save now you will pave the way for a comfortable future.



Work out what you will need
To help you work out how much money you might need, go to Aviva’s Shape My Future tool. It will help you work out your costs and how much you might need in later life and the difference saving a little extra now could make.

Go to Aviva’s Shape My Future tool to find out how much your future lifestyle might cost.



My contributions

Both you and Pearson pay a percentage of your pensionable salary in to your Pension Pot. Your pensionable salary is your base salary at 1 April each year as notified by the Company.

Being part of the MP03 Section of the Plan, Pearson will pay double the amount you contribute, up to a maximum percentage of your salary:

 Percentage pensionable salary
Minimum Maximum    
 Age  You pay

Pearson pays

Total You pay Pearson pays Total
Under 30 3%  6% 9% 5% 10% 15%
30-44 3% 6% 9% 6% 12% 18%
45 and over 3% 6% 9% 8% 16% 24%

Use the contributions calculator to see how much you might have for your future, based on the contributions you and Pearson are making now.



If you want to increase your contributions all you need to do is fill in a contribution change form. You can also contact us if you need more information.

Tax implications

Your contributions are paid tax-free, providing you are under HMRC’s Annual Allowance (AA). The AA is the limit on
tax-free pension contributions in any tax year. The AA for the 2019/20 tax year is £40,000, although this could be reduced if you have income of over £110,000 a year.


How can I save more?

If you want to boost your Pension Pot, you can increase your monthly contributions or pay in a one-off lump sum, known as additional voluntary contributions (AVCs).

If you are in the MP03 Section, it makes sense to check that you have increased your contributions to the maximum so that you are making the most of Pearson paying in double the amount you do and also take advantage of the increase in contributions as you age.

You can still pay more
You can choose to save more money for your pension by making AVCs. However, unlike your normal contributions to the MP03 Section, Pearson do not double match your AVCs.

As long as you are a member of the Plan you can change or stop your AVCs at any time, you can even restart again at a later date if you wish.

For more information about paying AVCs see the MP03 Section booklet. Then complete an AVC application form.

As with your normal contributions any AVCs you make are tax-free, providing you are under the AA limit. See
My contributions section for more information on the AA.

 

Discounts

Aviva is offering additional discounts to its online premiums for car, home and travel insurance to new Aviva customers.

To find out more go to www.aviva.co.uk/affinities/pearson where you can find details of the products available and any eligibility criteria that may apply.

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