How your TPT pension works
Auto-enrolment
When you start working for a company, your employer is legally required to enrol you on to a pension scheme. To be eligible, you must be:
- Classed as a ‘worker’.
- Between the age of 22 and State Pension age.
- Earning at least £10,000 per year.
- Working in the UK.
You can opt-out if you want to and opt back in later if you change your mind.
Employer contributions
You pay a percentage of your salary into a pension each month – usually a minimum of 5%. Your employer contributes too – usually a minimum of 3%. If you increase the percentage you pay in, your employer might increase theirs too.
Tax relief
One of the best bits about your pension is tax relief. It basically means you don’t pay tax on the money you pay into your pension, so every £1 you contribute from your salary only costs you 80p.
Your money is invested
We invest your pension contributions because it gives them the best chance to grow over time. We do this for you, so you don’t have to do anything. However, if you have a DC pension with us, you have the option to select your own funds and get involved with investing decisions.
The difference between DB and DC pensions
Now you’ve seen what DB and DC pensions have in common - let’s take a look at what sets them apart.
Transcript
Ever wondered what the difference is between a Defined Contribution and a Defined Benefit pension?
Although they are different, they have some things in common, let’s take a look.
Auto-enrolment
Your employer must enrol you on to a pension scheme by law, but you can opt out if you want to.
Employer contributions
Your employer must contribute to your pension, usually a minimum of 3%.
Tax relief
You don’t pay tax on your pension contributions. Every £1 you pay in only costs you 80p.
Invested
Your contributions are invested to give them the best chance to grow.
Now let’s see what sets them apart
A Defined Benefit pension also known as a DB pension is based on how long you have worked for an employer and how much you earn while you’re there. It gives you a guaranteed income for the rest of your life when you retire – a bit like a salary.
A Defined Contribution pension also known as a DC pension is based on how much you and your employer contribute and how well your investments perform.
If you have a DC pension the amount of income it will provide you with when you come to retire is not guaranteed.
It’s important to work out how much money you need to save to ensure it provides you with the future lifestyle you want.
And when your ready to start accessing your DC pension there are a number of different options to choose from.
If you don’t know what type of pension you have, your employer can let you know.
It maybe that you have both types, we call this being a hybrid member.
Managing your pension online
You can manage both types of pension online 24 hours a day, 7 days a week.
Use DB Online if you have a DB pension.
Update your details.
View your scheme record.
Submit an enquiry.
See your payslips, P60 and more.
Use the Retirement Savings Account if you have a DC pension.
Check your pension value.
Change your contributions.
Estimate your retirement income and more.
Want to know more?
Visit our DB and DC member pages to learn how to get the best from your pension.
The State Pension
Pension terminology explained
There’s no getting around the fact that pensions can be complicated, and the terminology can make things even harder to understand. Take a look at our jargon buster to see what it all means.
How to spot a pension scam
Would you recognise a pension scam if you saw one? Read our article to see what to look out for and how to protect yourself from pension scams.
Tracing lost pensions
Setting up your online account
Once you’re enrolled with TPT, you’ll be able to register your account online if your employer uses online access. It’s the easiest way to keep track of your pension.
Member guides and documents
Find your member guide and other information about your workplace pension scheme, including downloadable forms and useful links.
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Reviewing your contributions
It’s really important to keep a regular eye on your savings pot. Part of keeping track of how your savings are doing is checking how much you and your employer are paying into the Scheme each month and considering whether you are able to pay a little bit more. -
Reviewing your investment
The amount of money you and your employer pay into the Scheme is not the only way your savings pot can grow in value. Where your savings are invested, and how these investments perform, will have a big impact on how much you’re building up over time.