Sam has just joined the MMC UK Pension Fund. Whilst they have many years until retirement, Sam needs to make a few immediate decisions, such as:
As an example, a £100 pension contribution would only cost £72* representing a 39% increase at no extra cost.
Sam can find further details on the tax advantages and Salary Exchange on pages 5 and 19 of the Fund guide. Further information can also be viewed on the tax advantages and limits in the guides on the contribution page on the Fund website.
*Based on a basic rate taxpayer in England, Northern Ireland and Wales for the 2024/25 tax year using Salary Exchange.
The Fund can help you save more than you might think...
This example is based on a £30,000 base salary:
| Your contribution | 2.5% | 3% | 4% |
| Employer contribution | 6.5% | 9% | 12% |
| Cost to you per month* | £45 | £54 | £72 |
| Total paid into your pension account per month | £225 | £300 | £400 |
*Assumed basic rate taxpayer in England, Northern Ireland and Wales for the 2024/25 tax year using Salary Exchange.
You can increase your pension contribution through Prosper between the 1st and the 20th of each month. The change will be effective from the following month’s pay.
Further details on the investments available can be found in the investment guide. Find out more about what kind of investor you are by completing the Investor Questionnaire.
Anu has worked for MMC for a number of years. They contribute 3% of their pensionable salary and receive a Company matching contribution of 9% (3% below the maximum Company contribution of 12%). In addition to their current pension savings, Anu also has a few pension pots from previous employers.
Their financial security now and in the future has become more of a priority, but Anu hasn’t really paid much attention to their pension savings up until now.
Whilst Anu is still some way from retirement, there are actions they can take now to improve their benefits at retirement. For example, consider:
The Fund can help you save more than you might think...
This example is based on a £40,000 base salary:
| Your contribution | 2.5% | 3% | 4% | 10% |
| Employer contribution | 6.5% | 9% | 12% | 12% |
| Cost to you per month* | £60 | £72 | £96 | £240 |
| Total paid into your pension account per month | £300 | £400 | £533 | £733 |
*Assumed basic rate taxpayer in England, Northern Ireland and Wales for the 2024/25 tax year using Salary Exchange.
You can increase your pension contribution through Prosper between the 1st and the 20th of each month. The change will be effective from the following month’s pay.
*Assumed basic rate taxpayer in England, Northern Ireland and Wales for the 2024/25 tax year.
Whilst Charlie has a few years before their 65th birthday, they may retire sooner and starting to think about whether their total pension savings will be enough. Charlie is paying via Salary Exchange (also known as salary sacrifice) and is currently contributing 4% of their pensionable salary to make the most of the maximum Company contribution of 12%.
Charlie wants to make sure they have saved as much as possible to ensure the comfortable retirement they desire, at the time of their choosing and minimising any tax they have to pay.
They have never made any investment decisions about their pension pots and have just received a letter telling them that their investments are automatically “de-risking” in the default lifestyle strategy targeting income drawdown and pointing them towards the Pension Decision Service.
*Based on a higher rate taxpayer in England, Northern Ireland and Wales for the 2024/25 tax year using Salary Exchange.
MoneyHelper
Pensions Wise
Citizens Advice Bureau
State Pension Forecaster
Your Money - Midlife MOT (jobhelp.campaign.gov.uk)
