Planning for your future and saving more
You can probably already picture the retirement you want. Knowing how much that lifestyle is likely to cost, and whether you can afford it, is an important part of planning for your future - and gives you time to potentially boost your pension benefits if the numbers don't quite add up.
Find out below how to set your own retirement target and save more towards it with the different options offered by the Uniper Group of the ESPS or the Company, including:
- paying Additional Voluntary Contributions (AVCs)
- buying Added Years
- paying extra contributions
- bonus waiver
Setting a savings target
Will you have enough money to live the kind of life you want when you retire? Follow these three simple steps to find out and give yourself something to aim for.
- Work out how much you are likely to need in retirement
The Retirement Living Standards (RLS) offer a general guide to how much income you might need (after tax) when you stop work. When you are looking at these figures, keep in mind, it assumes that you will not have any mortgage or rent payments to make. You can find out more on the Retirement Living Standards website.
For a more personalised estimate, you can use our Lifestyle Calculator tool. It is based on RLS, but lets you adjust certain figures for a more tailored idea of how much income you might need to pay for the retirement you want.
2. Work out how much income you are likely to get in retirement
Once you know how much you are likely to spend in retirement, you can then work out whether you are likely to have enough money coming in to cover those costs. You will need to take into account all your possible sources of income. These can include:
- Your Uniper pension - you can check your Annual Benefit Statement (ABS) or request an estimate to see how much you might get.
- Your State Pension - the amount you get is set by the government. You can request an estimate online at www.gov.uk/check-state-pension.
- Other pensions - such as a private pension or pensions linked to previous employment. You will need to speak to each of the providers individually for estimates on those accounts. If you have lost their contact details, the Pensions Tracing Service may be able to help. It is a free, Government-backed service available online at www.gov.uk/find-pension-contact-details and over the phone on 0800 731 0175 or +44 (0)191 218 7777 if you are calling from outside the UK. Other companies offer a similar service but may charge a fee.
- Savings and investments - if you have savings outside of your pension, get those statements from your bank or other provider.
Remember, the Retirement Living Standards and Lifestyle Calculator figures are based on the income you may need after tax, whereas your pension estimates will give you a guideline of what you might get before tax.
3. Compare what you are going to need with what you are likely to get
If you do not think you are on track to be able to pay for the retirement you want, then you may need to make some changes to help you reach that target.
These could include:
- adjusting your lifestyle
- changing your retirement date, or
- saving more. There are a few days you could do this in the Uniper Group of the ESPS, including with Additional Voluntary Contributions (AVCs), extra contributions or by buying Added Years in the Scheme. There are more details on these options in the AVCs section on this page.
Saving more towards your target with AVCs
If you want to save more for retirement, you may be able to 'top-up' your pension by paying Additional Voluntary Contributions (AVCs).
How AVCs work
AVCs are extra payments you can make from your pay (before tax is taken) on top of the normal pension contributions you make as a Scheme member. It is a tax-efficient way to save more for life after work.
You decide how much you want to pay in - your chosen amount can be set in the Benify flexible benefits platform and can be changed at any time.
Any AVCs you pay in will benefit from income tax relief. Members benefitting from the salary sacrifice arrangement will also save on National Insurance contributions.
AVCs can be particularly helpful if you:
- have extra earnings such as overtime
- are thinking about taking your benefits early (see the taking your benefits page), or
- want to save a bit more and give your future income plans a boost
The money you pay into AVCs goes into a dedicated pension account with Standard Life. This is separate to your main Scheme account.
Your AVCs are paid into the investment funds you choose from the range available with Standard Life (see below). The value of your AVC account when you retire will depend on how much you pay in, and on the performance of your chosen funds. Please be aware that the value of investments can go down as well as up.
Your Standard Life AVCs account
Standard Life is part of the Phoenix Group. More details can be found on the website.
You can find more information about managing a Standard Life AVC account in the documents below and in the Uniper Group of the Electricity Supply Pension Scheme hub.
You can also call Standard Life direct on 0345 606 0075 with any questions about your AVCs.
Your AVC investment choices
The additional payments you make towards your pension in the form of AVCs are invested in funds. It is important to understand the investment options available and consider which are the best fit for you.
You can find out more, and make changes to your investment choices, in the Uniper Group of the Electricity Supply Pension Scheme hub.
How to start paying AVCs
If you want to start paying AVCs please log on to Benify and select the option for AVCs under 'Electricity Supply Pension Scheme'.
If you are already saving with AVCs
If you are already saving more into your pension with AVCs, you should check your investment funds regularly to make sure they are still suitable for you.
You can do this by logging in to the Standard Life app via the link above or at www.standardlife.co.uk.
If you have any queries in relation to your AVCs please contact Standard Life using the Uniper Group of the Electricity Supply Pension Scheme hub or by telephone 0345 606 0075.
Buying Added Years to boost your pension
The pension you will get when you retire depends on your Pensionable Pay and how long you have paid contributions in (your Pensionable Service). You can buy additional years of service, also known as 'Added Years' to increase your Pensionable Service, even though you may not have worked that long for your employer.
You pay for Added Years by making extra payments before you retire. Certain limitations apply and there is more information on this in your Member Guide.
Paying extra contributions to increase your retirement income
Paying your bonus into your pension
You may apply to pay part, or all of your annual bonus directly into the Uniper Pension Plan (UPP). This is called a bonus waiver.
You cannot pay your bonus in to the Final Salary section.
Please see the dedicated bonus waiver page for more details.
Getting financial advice
An Independent Financial Adviser (IFA) can offer you professional advice to help you make financial decisions.
You can also find support and guidance through the government-backed MoneyHelper service.
Visit the help and advice page for more details.
Neither Trustees, the pension administrator, Broadstone, or Uniper can provide you with any financial or investment advice. They can give you factual information but not advice.
Request an estimate of your pension
An estimate is a forecast of your pension. You can request one at any time by logging in to your myESPS account or contact the pensions administrator, Broadstone, as soon as possible.
Download the step-by-step guide to requesting an estimate online below.