Plan details
You are being offered the opportunity to join the Howdens Retirement Savings Plan - a Group Flexible Retirement Plan provided by Phoenix Life Limited, trading as Standard Life.
It's important you make an informed decision so you should read the key documents at the bottom of this page.
And you can find answers to common questions in our FAQs
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How joining this plan will work
Being automatically enrolled
You'll normally join automatically if:
- Your age is between 22 and the State Pension Age
- You earn more than £10,000 a year before tax with Howdens
Your employer will let you know if you will be automatically enrolled - but there may be a waiting period from when you start working before you're enrolled.
What you need to do
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Make sure it's right for you
Paying into a company pension can be a great way to save for the future - especially since your employer pays in too. But you may decide it's not right for you. Once you've joined, you'll have a month to opt out. And you can stop or change your payments in the future if you need to - ask your employer about how and when you can do this.
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Decide how much to pay in
It's up to you how much you pay in as long as you meet the minimum amount set by your employer.
Choosing to join
You may still be able to join this plan, even if you aren’t auto-enrolled. The options depend on your age and how much you earn. You may be enrolled automatically if your circumstances change.
If you’re aged between 16 and 74:
If you earn £6,240 a year or more with your employer you can join this plan manually and benefit from payments made by your employer. Just tell them you want to join.
If you earn less than £6,240 a year you might still be able to join this plan. Your employer needs to give you access to a pension scheme but it could be different from this one and they might not pay in. Speak to your employer if you’d like to join.
What you get if you join
You’ll be set up with a company pension. You’ll get tax benefits on any payments you make, but your employer might not pay in if you earn less than £6,240 a year.
What you need to do
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Make sure it's right for you
Paying into a company pension can be a great way to save for the future - especially since your employer may pay in too. And you can stop or change your payments in the future if you need to. If you decide you want to join, speak to your employer about next steps.
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Decide how much to pay in
It's up to you how much you pay in as long as you meet the minimum amount set by your employer.
Payment options for this plan
You'll be able to change your payments once you've joined this plan.
The government has set a minimum amount that usually needs to be paid. At least the minimum amount is normally paid by both you and your employer, though your employer may have set higher payment levels. Visit the gov.uk website to find out more about government minimums and log in to Howdens Benefits Hub for information about the levels they have set.
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How payments are made
There are two ways that you can make payments into your pension plan. Both give you tax benefits but work in different ways. Please speak to Howdens to find out how your payments will be taken.
- Salary Exchange
This means payments will be taken from your salary before tax and National Insurance (NI) are calculated. You and Howdens may pay less NI and you won't need to reclaim any tax relief from the government manually. It's important to remember that Salary Exchange isn't right for everyone. It's a change to your terms of employment and could affect your entitlement to state benefits or your ability to borrow.
You can see examples of how Salary Exchange could increase your pension payments or your net take home pay in these documents:
- Payment from after-tax earnings
This means Howdens will deduct your payments from your after-tax earnings and pay them to Standard Life on your behalf. The government then adds tax relief on top of your payments - boosting the amount that gets paid into your pension plan. Tax relief will be applied at the basic rate of income tax so if you normally pay more tax, you'll need to reclaim this from the government manually.
You might be able to change the way you make payments into your pension plan - please speak to Howdens to find out what your options are.
Pension allowances
There's a limit to the amount that can be paid into your pension plans each tax year without paying a tax charge - for most people this is normally 100% of your earnings, capped at £60,000. But in some circumstances - including if you have taken income from one of your pension plans - it could be lower. You can find out more about the Annual Allowance on standardlife.co.uk.
Lifetime allowance
Up until 5 April 2024 the Lifetime Allowance was the maximum amount of pension savings you were allowed to build up during your lifetime and take some of the benefits tax-free.
The limit for the 2023/24 tax year was £1,073,100 but could be higher if you are registered for any form of Lifetime Allowance Protection.
From 6 April 2024 onwards the Lifetime Allowance was replaced with limits on the tax-free benefits instead.
It’s important that you understand how these changes may affect your retirement planning.
Lump Sum Allowance and Lump Sum and Death Benefit Allowance
From 6 April 2024 onwards HMRC have placed limits on the amount of tax-free benefits that can be taken from pension schemes both during your lifetime and on your death.
The standard Lump Sum Allowance is £268,275 and the standard Lump Sum and Death Benefit Allowance is £1,073,100. These allowances reduce each time you take benefits.
If you hold one or more of the Lifetime Allowance Protections given by HMRC then you will be entitled to higher allowances that reflect this.
There’s more information on these allowances on standardlife.co.uk, and we’ve also created Questions and Answers to help explain the changes and you can visit the HMRC gov.uk/tax-on-your-private-pension.
These allowances aren't an issue for most people, but it's a good idea to check. For more information download our Guide to tax relief, limits and your pension.
Opting out
A company pension is one of the most rewarding ways to save for the future. But it's your choice and you can opt out if you want to.
You can't opt out until you join
You can only opt out after you've been enrolled into this plan by your employer. This is a government rule to encourage people to save into their pension plan. You'll be notified once you've been enrolled and will receive details about how to opt out at that point.
If you opt out you can still join later
Government rules may mean that you get auto-enrolled back into your company pension plan in the future. This normally happens every three years, but you can ask your employer if you'd like to join sooner. Though you may have to wait up to 12 months before you can join again.
The downsides of opting out
If you opt out, you won't receive any payments from your employer. You may also lose some of the tax benefits if you put your money somewhere else.
Investment choices and charges
Important documents
These documents will help you understand how this plan works, so you can decide if it's right for you. It's a good idea to keep or save a copy of each one.
A guide to your pension
A 'Welcome' guide to the Howdens Retirement Savings Plan and the available investment options.
Additional information
Product information
Read these documents to understand the features of your employer’s pension plan in detail.