Your company pension scheme

Transcription

1 Pease take some time to read this guide. It s important you understand what this pension product is, and what the benefits and risks invoved are. Pease keep a copy of this document in a safe pace. If you re reading on a screen and anything isn t dispaying propery, pease ask your empoyer for a printed copy. Your company pension scheme An essentia guide for empoyees Retirement Investments Insurance Heath

2 What s inside Pease be aware that this guide doesn t provide personaised advice or give persona recommendations. If you need a persona recommendation, you shoud seek financia advice. Your empoyer may have ined up a financia adviser that you can speak to. Aternativey, you can visit unbiased.co.uk to find an adviser in your area. An adviser may charge a fee for this service. Introduction Wecome Your company pension expained Your investment options Deciding where to invest The investment options you can choose If you re an existing customer and you ve appied for a transfer-in, additiona payments or simiar, you can skip ahead to the Important information section. Important information Your questions answered Key features Terms and conditions Find out more The more attention you give your pension today, the more you coud benefit tomorrow.

3 Introducing your company pension scheme Dear coeague, If you want to make the most of your retirement years, it s so important to prepare we. The simpe fact is, the sooner you start putting some money aside for it, the greater your chances of being abe to afford the retirement you want. And that s why we re so peased to introduce our company pension scheme to you today. A key part of your benefits package Our company pension scheme is one of the most important parts of your benefits package. It gives you a way of buiding up a pot of money that you can use to hep fund your retirement. And any money paid in may aso benefit from tax reief from the government. Pease remember that tax benefits are subject to change, interpretation and depend on the individua s circumstance. About this guide Your company pension scheme is run by Aviva, who have many years of experience with pension and retirement pans. They ve put together this guide to expain in pain Engish a the essentia things you need to know about the scheme. It describes what our company pension is, what your investment options are and what to do next. What happens next? You need to read this guide before you join our company pension. Once you have joined, we send you a personaised iustration so you can see what your income wi be worth in the future. If you decide that this pension is not for you, you wi have the right to change your mind. You can aso find ots more information onine at aviva.co.uk/pension-essentias

4 Your company pension expained what s in it for you? Your company pension scheme gives you an easy, hasse-free way to start investing for your ife after work. Here s an expanation of how the scheme works and the main benefits for you. It s a great way to prepare for your future Whether it s a ong way off or just around the corner, one day you retire. And if you want to enjoy as good a ifestye then as the one you have now, you need a substantia amount of money to ive off. After a, your iving costs won t come to an end just because you ve stopped working. Your company pension scheme is a great way of buiding up a pot of money. It s designed to hep you buid up a pension pot over a period of time, which you can then use in retirement. How the company pension scheme works 1. You make payments into your pension pan, and your empoyer might do, too. You don t pay any tax or nationa insurance on payments your empoyer makes, and you get tax reief on any payments you make yoursef (see next page for more detais). 2. This money is then invested in ine with whichever investment option you ve chosen. 3. We charge for managing your pension pan and the funds you invest in may have extra charges. These charges wi reduce the vaue of your pension pan. 4. Every year we send you a statement showing the atest vaue of your pension pan, and an iustration showing what you might get at your chosen retirement age. You can aso check onine by signing up to MyAviva - visit aviva.co.uk/existing-customers/ to find out more. 5. When you reach your chosen retirement age, you can use the money you ve buit up to provide yoursef with retirement benefits. There are various ways of doing this. So we write to you we in advance to spe out your options. For more detais about how the scheme works, read the Key features and Terms and conditions ater in this guide.

5 Pus you get a of these benefits Tax reief from the government It may sound too good to be true, but the government wi actuay hep you save for your retirement. For every 80p you pay into your pension pan, the government adds 20p in tax reief, boosting it to a tota contribution of 1. For instance: If you pay in: 80 The taxman adds: 20 So the tota into your pension pan is: 100 Your contributions are deducted after tax is cacuated, and Aviva caims basic rate tax reief on your behaf and adds it to your pension pan. If you pay tax at more than the basic rate, you can caim even more tax reief when you compete your annua sef-assessment tax return. You re aowed to pay up to 3,600 or 100% of your taxabe saary (whichever is higher) into your pension each year. However, there are imits on the amount of tax reief you can get on your payments each year. This is based on current tax rues and tax rues may change in the future. Visit gov.uk for detais. Contributions from your empoyer Even better, with some schemes it isn t just the government who wi hep you out. Your empoyer might pay in too, giving your pension pan an extra boost. Your empoyer wi be abe to give you detais on how they wi hep with your contributions. Locked away unti at east age 55 Once money is in your pension pan, it normay stays ocked away unti you reach age 55. So even if you re tempted, there s no way you can spend it. From the age of 55, you have the freedom to use your pension money. The Key Features section of this document outines your options and we write to you before your chosen retirement age to expain these options in detai. You can aso find out more in our Retirement centre, at aviva.co.uk/retirement/ approaching-retirement/ Potentia investment growth The money that goes into your pension pan doesn t just sit in a vaut somewhere, gathering dust; it s invested. This gives it the potentia to grow over time, so you coud end up with more money than has been paid in. Just remember that, as with any investment, the vaue of your pension pan can go down as we as up, so it may be worth ess than the amount paid in. It s important to think about the ong-term, though. What matters is what your pension pot is worth when you choose to take your retirement benefits. To find out how much your pension coud be worth, pease use our retirement panner aviva.co.uk/retirement/toosand-cacuators/my-retirement-panner/ Governed by an Independent Governance Committee Independent Governance Committees (IGCs) have been set up by workpace pension providers from Apri 2015, as part of reguatory changes by the Financia Conduct Authority (FCA). The introduction of IGCs provides greater protection for members and are designed to improve the governance of workpace pensions and hep ensure vaue for money. For more detais pease visit aviva.co.uk/pension-essentias/your-pension-scheme/igc/ Why start now? You ve probaby heard this before, but the earier you start paying into a pension pan, the better. Why? Because if you eave it unti ater, it s ikey you d have to pay in a ot more of your saary just to buid up a simiar sized pension pot. It s aso true that the onger your money is invested, the more time it has to grow. And don t forget the sooner you begin, the sooner you can start benefitting from tax reief.

6 Deciding where to invest Not everyone reaises this, but the money you pay into your pension pan doesn t go into a savings account of some sort. It s invested, usuay into one or more investment funds. And you can decide which ones. Why your investment matters Paying into your pension pan is an important first step. But knowing where your payments are invested is important, too. That s because the better this investment performs, the more money you coud have when you come to take your retirement benefits. And, of course, the reverse is aso true: if the investment under performs, you coud have ess. Two things to consider Your empoyer s company pension scheme gives you a choice of investment options to pick from (expained overeaf). If you don t pick one yoursef, your money wi be invested using the defaut option for this pension scheme. But if you want to make your own choice, here are a coupe of things we recommend thinking about first: 1. How much invovement do you want to have? Are you happy eaving your investment decisions to someone ese? Or woud you prefer to have fu contro over how your pension pan is invested? Your company pension scheme gives you two sets of options: Low invovement: For peope who d rather take a hands-off approach, making few or even no investment decisions. Your money wi be invested using a pre-determined investment approach, so the investment decisions are made for you. High invovement: For peope who want to be more invoved in deciding how their pension pan is invested, and who want to choose their own investment funds. We ve indicated which options are ow-invovement, and which are high, in our descriptions of the investment options avaiabe for this scheme (see overeaf). 2. What s your attitude to investment risk and return? Your company pension scheme offers investment options to suit different types of investor depending on the investment risk you re comfortabe with, and the returns you re ooking for. Generay speaking, the higher risk an investment, the greater its potentia for making higher returns. The downside is that its vaue is ikey to go up and down more, so there s a greater chance of osing money (especiay over the short term). With ower risk investments there s ess chance of you osing money, but the returns they re capabe of tend to be ower and coud possiby strugge to keep up with infation. Risk is the possibiity of osing money. Return is any gain on top of the origina amount you invested.

7 It s important to choose an investment option that s suitabe for the eve of investment risk you re comfortabe with. And remember that whichever option you choose, the vaue of your pension pan can go down as we as up, and it may be worth ess than the amount paid in. For more information about risk and return, visit our investment centre at aviva.co.uk/pension-essentias What if I don t make a choice? If you don t make an investment choice, we invest your payments using the defaut investment option for your pension scheme. Uness your empoyer tes you otherwise, this wi be the Aviva Future Focus 2 Drawdown Lifestage Approach. For detais, pease visit aviva.co.uk/pension-essentias/investment-centre/investment-options/owinvovement.htm Can I change my mind ater? Yes, you can change your investment choice at any time. You can do this by contacting us (see the Key Features section of this document), or by signing up to MyAviva - visit aviva.co.uk/existing-customers/ to find out more.

8 The investment options you can choose You can decide where to invest the money that goes into your pension pan. Here are the options avaiabe for your company pension scheme. The funds you invest in may have extra charges. You can find the detais of these charges onine at 1. The defaut option Risk/return rating: Varies, depending on the funds invoved High or ow invovement? Low Overview: Your company pension scheme has a defaut investment option. Uness your empoyer tes you otherwise, this wi be the Aviva Future Focus 2 Drawdown Lifestage Approach. For detais, pease visit aviva.co.uk/ pension-essentias/investment-centre/investment-options/ow-invovement.htm How it works: Your money wi automaticay be invested in the defaut option at first. It is a pre-determined investment path on which, at various stages, we automaticay move your money between carefuy chosen funds. With this option we make a of the investment decisions, so you don t have to. You can change your investment option any time after you ve joined the scheme by caing our group pension hepdesk on (we re open Monday to Friday, 9am to 5pm). The good news is that the defaut option is carefuy governed to make sure it remains appropriate for our Company Pension members. We review it at east every 2 years and our Independent Governance Committee ensure that we abide by our duties. For more detais pease visit aviva.co.uk/pension-essentias/your-pensionscheme/igc/ Your empoyer may aso offer other investment options for you to choose from, which they wi te you more about when they expain the defaut option to you. Pease remember that the vaue of investments can go down as we as up, so the vaue of your pension pan coud be ess than the amount paid in. 2. Aternative Future Focus ifestage investment approaches Overview: If the defaut option is not right for you, but you don t want to pick your own funds, we have a range of investment approaches, where we make the investment decisions for you. How it works: Our Lifestage approaches are pre-determined investment paths on which, at various stages, we automaticay move your money between carefuy chosen funds. To see our fu range, pease visit aviva.co.uk/ pension-essentias/investment-centre/investment-options/ow-invovement.htm Pease remember that the vaue of investments can go down as we as up, so the vaue of your pension pan coud be ess than the amount paid in.

9 3. Choose your own funds Risk/return rating: Varies, depending on which funds you choose High or ow invovement? High invovement Overview: The most hands-on investment option you can pick, designed for experienced investors who are comfortabe making their own investment decisions. How it works: Choose up to 50 investment funds from our fu range of 200+ to create a portfoio that s perfecty suited to you. For detais and fund factsheets of a the funds you can pick, visit aviva.co.uk/pensionfund-info. If you choose this option, it s important you review your fund choices at reguar intervas. Pease remember that the vaue of investments can go down as we as up, so the vaue of your pension pan coud be ess than the amount paid in. How to seect your investment option If you re happy using the defaut option for this scheme, you don t need to do a thing. Your payments wi be automaticay invested into the defaut option. But if you d prefer to pick your own investment option, here s what to do: 1. Choose your investment option. You can pick from any of the options isted in this section of the guide. For more information about them and the funds avaiabe, pease visit our investment centre at aviva.co.uk/pension-essentias/ investment-centre/ 2. Let us know which option you want to use. You can do this onine at MyAviva aviva.co.uk/existing-customers/. Or you can ca our group pension hepdesk on (we re open Monday to Friday, 9am to 5pm). Remember, your money wi automaticay be invested in the defaut option at first. You can change your investment option any time after you ve joined the scheme. Not sure which option to pick? You might find it usefu to speak to a financia adviser. Find one near you at unbiased.co.uk

10 Your questions answered Is there something you d ike to know about your company pension scheme? Here are answers to the questions peope often ask. Just remember that, as with any investment, the vaue of your pension pan can go down as we as up, so it may be worth ess than the amount paid in. Can I be a member of the scheme? Your empoyer wi te you if you re eigibe to be a member of the pension scheme. As far as we re concerned, you can join if: a) You re permanenty resident* in the UK, or b) You or your spouse/civi partner are working overseas for the UK government (a Crown servant). You need to te us if: a) You are no onger permanenty resident* in the UK, or b) You or your spouse/civi partner stop working overseas for the UK government (a Crown servant), or c) You stop receiving earnings which are subject to UK income tax as this may affect how much you can pay into your pan. *For these purposes, broady, we define permanenty resident in the UK, as iving in the UK for a or most of a particuar tax year (a minimum of 183 days), and iving in the UK when the pension pan starts. What happens at my chosen retirement age? When you are ready to take your retirement benefits you wi have a number of options as to how to use your pension money. The Key Features section of this document outines your options, and we write to you before your chosen retirement age to expain these options in detai. You can aso find out more in our Retirement centre, at aviva.co.uk/retirement/approaching-retirement/ Can I change my chosen retirement age? Absoutey. Whether you want to bring it forward or move it back, a you need to do is speak to your empoyer. Just be aware that you can t usuay take your retirement benefits before age 55 and with this pan, you must decide how to take your retirement benefits on or before your 75th birthday. If you want to eave your money invested, you have two options. You can either decide to take benefits through income drawdown (see the Income drawdown section in the Key Features for detais), or you wi have to move your pension to a different pan that ets you keep your pension after age 75. If you want to wait to take your retirement benefits unti after age 75, we recommend you seek financia advice first. What happens to my pension if I eave my empoyer? Your pension pan beongs to you. So if you move jobs, it moves with you. This means you can carry on paying into it. There wi be some imitations on your investment options, though. We can discuss these with you if you eave your empoyer and want to make some changes. What is a pre-determined investment approach? A pre-determined investment approach is a way of investing for your retirement without having to be too hands-on in managing your pension pan. It is a pre-determined investment path on which, at various stages, we automaticay move your money between carefuy chosen funds. For a fu expanation of these approaches, pease visit our investment centre at aviva.co.uk/pension-essentias/investment-centre/ Your empoyer wi te you about any other investment option(s) they have chosen for you. If I choose a pre-determined investment approach, wi the funds in it ever change? They might do. We cosey monitor the funds in a our investment approaches. If we find one that isn t performing as it shoud, we may swap it for a fund that s better suited to the objectives of your investment approach. Certain events in the market can aso ead to a fund being cosed, renamed or changed. Usuay, we ony swap funds for simiar ones. For exampe, if one of your funds invests mainy in UK shares, we swap it for another fund that invests mainy in UK shares. A ow-risk fund won t usuay be swapped for a high-risk fund, and vice versa. We wi te you if we change the funds in your investment approach.

11 What happens to my pre-determined investment approach if I change my chosen retirement age? This depends on the type of pre-determined investment approach you re invested in. Lifestage investment approach If you choose to change your retirement age before taking your benefits, your investments wi be automaticay rebaanced to the correct funds and proportions for your new chosen retirement age. Lifestye and Phased Switching If you choose to change your retirement age before taking your benefits, your ifestying or phased switching approach wi automaticay stop. You can restart the same or another approach if there are more than five years to your new chosen retirement age. For fu detais, pease see the Terms and Conditions. What happens if I don t take my money at my chosen retirement age? This depends on the type of pre-determined investment approach you re invested in. If I want to choose my own funds, how shoud I decide what to pick? Whichever funds you pick, it s important that they re suitabe for your attitude to investment risk and how cose to retirement you are. If you re at a unsure, you shoud speak to a financia adviser first. For more information about investments, pease visit our Investment Centre at aviva.co.uk/pension-essentias/ investment-centre/ We recommend you speak to a financia adviser before you make any decisions. If you don t aready have an adviser, you can find one at unbiased.co.uk. A financia adviser may charge a fee for their service. What happens to my investments if I eave the company? Your money wi stay in the investment option you ve chosen if you eave, so ong as you don t transfer your pension pan to another scheme. If you d prefer to move out of your current investment approach, et us know and we te you what your options are. Lifestage investment approach If you do not take your benefits at your origina or chosen retirement age, your pan wi remain invested in the funds and proportions appropriate for your origina or chosen retirement age. We wi continue to rebaance your investments to maintain those proportions. Lifestye and Phased Switching If you do not take your benefits at your origina or chosen retirement age, your ifestying or phased switching approach wi automaticay stop and no further automatic switching of units wi take pace. If you have moved your money to income drawdown, any automatic switching wi stop at age 75 (see the Income Drawdown section in the Key Features for more detais). Can t find the answer you re ooking for? For more detaied information see the Key features section, next.

12 Key Features of the Company Pension The Financia Conduct Authority is a financia services reguator. It requires us, Aviva, to give you this important information to hep you to decide whether our Company Pension is right for you. You shoud read this document carefuy so that you understand what you are buying, and then keep it safe for future reference. Its aim To buid up a pension pot for your retirement in a tax-efficient way. Your commitment To make monthy or yeary payments unti your chosen retirement age. Or to make at east one singe or transfer payment. You re not committed to sending us any payments if you re in an empoyer scheme where you don t have to make any payment. Instead, your empoyer may make payments into your pan. To keep the pan unti your chosen retirement age. To invest for the ong term, normay unti you are at east 55. You don t usuay have access to your pension pot before this time. To give up your rights in the other pension scheme if you re making a transfer payment. To te us about changes that might affect your pan. Fu detais of what you must te us are in the Your questions answered section under Can I be a member of the scheme? on page 10. Risks The vaue of your pension pan isn t guaranteed. It depends on investment performance which means its vaue can go down as we as up, and coud be worth ess than the amount paid in. Upon joining your Company Pension, you wi receive a personaised iustration. Your persona iustration wi give you an exampe of what you might get back. However, the amount you receive may be ower than that shown in your iustration. This coud happen if: you and/or your empoyer stop or reduce your payments investment performance is ower than iustrated the cost of converting your pension pot into an income for ife is more than iustrated you start taking your retirement benefits earier than your chosen retirement age tax rues change charges increase above those iustrated. The investment funds you can choose from have different eves of risk. You can find detais of each fund onine at aviva.co.uk/pensionfund-info. If you make a reguar payment, a singe payment or transfer your pension pan from another pension scheme to this pan and then cance the pan within 30 days, we may pay back ess than the amount paid in. The transferring scheme may not take back the transfer amount. In certain circumstances, we may need to deay payments, transfers and switching funds as outined in your pan terms and conditions. This coud be as a resut of adverse market conditions or where it eads to the unfair treatment of other investors. The deay may be up to one month for most funds or up to six months if the fund you re invested in can t easiy be converted to cash. This incudes: A property fund; or A fund that s fuy or party invested in the form of and or buidings. In certain circumstances we may further deay the canceation of units in any investment fund: i. To match any deay or suspension imposed by the manager(s) of any entity in which the fund has hodings; or ii. where due to exceptiona circumstances we reasonaby consider that it is in the interests of panhoders whose pans are invested in the fund to do so. After a deay, we wi use the unit price that appies at the end of the deferred period. You can find out more about this in the terms and conditions. We et you know if and why we need to deay payments, transfers and switching funds. Risks of transfer payments If you re transferring a pension pan from another pension scheme, what you get from this pan at retirement coud be very different. Depending on the type of scheme you re transferring from, you may be giving up a or some of the foowing: a guaranteed retirement income that is inked to your pay when you eave the company

13 guaranteed annuity rates, which coud provide you with a higher eve of income than may be offered on the open market. an increase in your pension pot between now and when you retire; this coud be inked to infation increases in your retirement income; these coud aso be inked to infation a pension which gives you a oyaty bonus enhanced death benefits a pension which ets you retire eary a arger tax-free cash sum when you retire ife cover. A financia adviser can show you what benefits you d be giving up if you transferred from your existing scheme. As part of this, they can te you if transferring to this pan is ikey to match or exceed those benefits and how charges may differ. This pan cannot accept any pension benefits that have aready been accessed (known as crystaised funds). Transferring pensions is not right for everyone. It coud be a compex decision and you need to consider the charges, fund ranges, any vauabe benefits that coud be ost and any tax impications. There s no guarantee that you be better off by transferring. Remember that the vaue of your pension can go down as we as up and you may get back ess than has been paid in. If you are thinking about transferring your existing pension to us, we strongy recommend you seek financia advice. Your Empoyer wi be abe to te you if a financia adviser is supporting your pension scheme with us who you can speak to. Aternativey, you can find your own adviser at unbiased. co.uk. If you want to transfer without using a financia adviser, acceptance wi be subject to certain criteria. For exampe, we cannot accept transfers over certain threshods without advice where you may ose vauabe guarantees or benefits that are in pace with your existing pension. During the transfer process your money wi not be invested meaning you wi not benefit from any rise in the price of investments during that period. Your existing provider may charge you for moving your money, known as an eary exit penaty. We wi not charge you for transferring to us but your invested transfer fund wi be subject to the annua fund charge on your poicy. Questions and answers What is the Company Pension? It s a persona pension pan for individuas under 75, who are permanenty resident in the UK, are eigibe to join their empoyer s Group Persona Pension Scheme, and want to invest for retirement in a tax-efficient way. For these purposes, broady, we define permanenty resident in the UK, as iving in the UK for a or most of a particuar tax year (a minimum of 183 days), and iving in the UK when the pension pan starts. It may be suitabe for peope who are empoyed or sef-empoyed. Your empoyer can make payments to this pan. It s not an occupationa pension pan. How fexibe is it? You can make one-off payments at any time. You may aso make reguar monthy or yeary payments. Your payments wi be subject to the imits that we set. You can increase your reguar payments. Your empoyer may sometimes ask you to pay more into your pension. You can reduce your payments, or stop and restart them at a ater date. Reducing or stopping your payments might reduce the vaue of your pension pan. If you want to stop paying you can ask us for more information on how charges might reduce your pension pan. You may be abe to transfer your pension pan from another pension scheme to this pan. We recommend that you speak to a financia adviser before you do this to make sure it s suitabe for you. What choices wi I have when I take my retirement benefits? This section expains the options you wi have when you reach retirement age. When can I take my retirement benefits? We set up your pension pan to provide retirement benefits from your chosen retirement age, but you can take your retirement benefits from age 55. Peope in some occupations, or who can t carry on working because of i heath, may be abe to take benefits earier than age 55. Under this pan, you must decide how to take your retirement benefits on or before your 75th birthday. If you want to eave your money invested, you have two options. You can either decide to take benefits through income drawdown (see the Income drawdown section for detais), or you wi have to move your pension to a different pan that ets you keep your pension after age 75. What might I get when I want to take my retirement benefits? This wi depend on the size of your pension fund and the cost of converting your pension pot. The size of your pension fund wi depend on how much has been paid in, how ong it s been invested for, the investment performance of the funds you choose and our charges. Your iustration wi give you an idea of what you might get. Remember, accessing your retirement benefits wi count towards your ifetime aowance (see what about tax for detais).

14 How can I take my retirement benefits? When you are ready to take your retirement benefits there are currenty a number of different options about how you can use your pension pot, incuding taking an income, a ump sum or a combination of both of these. We write to you before your chosen retirement age to et you know what your options are. You shoud seek guidance, such as Pension Wise, or financia advice before choosing your option(s). The options avaiabe are expained beow. You can choose more than one option. Use your pension pot to buy an income for ife (known as an annuity) You can normay take up to 25% of your pension fund as a tax-free cash sum and use the rest of it to buy an annuity. An annuity is an insurance poicy that wi give you a guaranteed income for the rest of your ife. Pease note, by taking a tax-free cash sum, the amount of income you get wi be reduced. You can buy an annuity from any annuity provider. It does not have to be purchased from Aviva. It s important to shop around as you may be abe to get a higher income. This is especiay important if you have certain ifestyes and heath factors. The income you get wi depend on the size of your pension pot and the cost of converting it. Once your annuity is set up, it cannot be changed. Take your pension fund as a cash ump sum You can take some or a of your money directy from your pension pan as and when you need it. This is known as an Uncrystaised funds pension ump sum (UFPLS) Any money you don t withdraw wi remain invested and you can continue to make payments into your pan. The features in this document wi continue to appy. For each cash withdrawa the first 25% wi be tax free, but the remaining 75% wi be taxed as income. When you take your first withdrawa, you wi trigger the Money Purchase Annua Aowance (see the what about tax? for detais). There are no imits on how much you can withdraw. You can take a maximum of six withdrawas per tax year. You pension pan wi cose once you have withdrawn a your money. Transfer to another pension scheme You can transfer your pension fund to another registered pension scheme. Other registered pension schemes may aow additiona retirement options. Pease read the section Can I transfer my pan? Income drawdown (aso known as Fexi-access Drawdown) You can choose to take income drawdown from this pan, or by transferring it to another pension provider who offers this. It s important to shop around as it coud hep you obtain better terms. If you decide to take income drawdown from this pan, the foowing section expains how it works. You can move some or a of your existing pension fund to income drawdown and take a tax-free cash sum. Normay 25% of the amount you move wi be paid as a tax-free cash sum. The amount you move to income drawdown wi remain invested unti you re ready to start taking income from it. Any subsequent income withdrawas wi be taxed as income and the foowing appies: When you take your first income withdrawa, you wi trigger the Money Purchase Annua Aowance (see the what about tax? for detais). You can take up to 6 singe income withdrawas per tax year. We can t set up income payments that are automaticay paid to you on a reguar basis e.g. weeky or monthy. There is no imit to how much you can withdraw. Any money you don t move to income drawdown wi aso remain invested and you can continue to make payments in. This money wi now be caed your accumuation fund. Your income drawdown funds and any accumuation funds wi stay invested in the same funds your pension pan is invested in when you move your money, with one exception: You re not abe to invest any of your income drawdown money in our with-profits funds. Instead we wi switch your money into the Diversified Assets Fund I at the time you move into income drawdown. You can change your investment funds at any time. If you switch your funds, the change wi appy to your whoe pan (both income drawdown funds and any accumuation funds you may have). You can ony move your pension savings to income drawdown before your 75th birthday. However, once your money has been moved to income drawdown, the money can remain invested for the rest of your ife. At age 75, any ifestage or ifestying/phased switching wi stop. Your investment funds wi remain at the end point with no further automatic switching or rebaancing. You need to make sure that your investments are right for you; you shoud reguary review your existing investments.

15 Your origina pan charges wi continue to appy for a the money that remains invested (income drawdown and any accumuation funds). However, we can t pay any charges for advice to your financia adviser from your income drawdown funds. Adviser charges can ony be paid if there s enough money eft in your accumuation funds. We currenty don t make a charge for moving to income drawdown or for making singe income withdrawas. If this changes, we wi et you know. You can sti transfer your pan to another provider. The transfer wi appy to your whoe pan (both income drawdown funds and any accumuation funds you may have). Some providers may not accept this type of transfer. You pension pan wi cose once you have withdrawn a your money. Can I change my mind about moving to income drawdown? Yes. You have 30 days in which you can change your mind about setting up income drawdown. Your 30 days start when you receive confirmation from us that your income drawdown option has been set up. At that time we send you a reminder about your canceation right and a canceation form to compete if you want to cance. You can ony cance your income withdrawa option and not your decision to take tax-free cash from your pan. If you decide to cance you wi have to te us what you want to do with your money moved to income drawdown. If you don t te us what to do with your money within 30 days of asking us to cance, then the income drawdown terms wi appy and your canceation won t go ahead. If you don t cance within the 30 days, your income drawdown wi continue as set out in the terms and conditions. Taking your retirement benefits as ump sums or income drawdown key risks Taking some or a of the money from your pension savings means it can run out - it s not a guaranteed income for your ifetime. Therefore you need to think about how you wi provide for yoursef and your dependants in the future. The vaue of your investments can go down as we as up. You may get back ess than the amount that s been invested, so you coud ose money. You need to make sure that your investments are right for you; you shoud review your existing investments before you take a cash sum or move them to income drawdown and on a reguar basis after that. You coud get ess income than if you used your money to buy an annuity (a guaranteed income for ife). Any ump sums or income taken wi be added any other income for tax purposes. This may mean you move into a higher tax bracket. Emergency tax may be appied to your first payment. If this happens, you wi have to recaim any over payment or make up any underpayment. We wi et you know how to do this if it affects you. For more information of the risks associated with a the avaiabe options, pease see our Making sense of your retirement options document. Pease contact us if you woud ike a copy. Do I have any other options? Other types of pension, incuding stakehoder pensions, are avaiabe and may meet your requirements as we as this pan. The charges under other pensions may be higher or ower than the charges under this pan. However, if you choose an aternative pension, your empoyer may not agree to contribute to that pension pan, so you woudn t receive any pension contributions from them. If you are thinking of making payments into an aternative pension, you may want to get advice from a financia adviser first. How much can be paid into my pan each year? We have minimum or maximum eves for payments and we may change these from time to time. Whie you are a member of your empoyer s scheme, the minimum reguar payments are agreed with your empoyer. If you wish to continue to make payments after eaving your empoyer the minimum payment is currenty at east 20 a month. If you want to make singe payments, the minimum amount you can pay in is We reduce this to 500 if you ve aready made a singe payment or if you re making reguar payments. HM Revenue & Customs sets the maximum that you can pay into the pan and sti receive tax reief. We ony accept payments that quaify for tax reief. Your empoyer wi normay pay into this pan. Your empoyer may aso ask you to pay more into your pension ater. We coect reguar monthy and yeary payments by direct debit, and one-off payments by cheque. If you work for an empoyer, they usuay take your payments from your saary and send them to us, together with any payments they re making. What if I stop iving in the UK? You shoud et us know if you move overseas, or start working overseas, or work overseas on secondment from your empoyer, as this may affect how much you can pay into your pan.

16 If you are no onger permanenty resident in the UK, you may have to reduce the payments you make to your pan. In most cases, your payments must stop after five years. We wi et you know how your payments are affected, as this wi depend on your circumstances at the time. What about tax? You get UK tax reief on your payments (up to a maximum imit). Your payments are deducted after tax is cacuated, and Aviva caims basic rate tax reief on your behaf and adds it to your pension pan. We caim the basic rate tax reief for you from HM Revenue & Customs. For exampe, if basic rate income tax is 20% and you pay 80 a month, tax reief woud add 20 a month. This means that for every 80 you pay, 100 goes into your pan. If you pay tax at higher rates you can caim your extra tax reief through your sef assessment tax return. You can get tax reief on your gross contributions up to the greater of 3,600 or 100% of your UK reevant earnings. If tota gross contributions to a your pension pans exceed the annua aowance you may incur a tax charge at your margina rate of tax. The standard annua aowance is 40,000. If you have an income (incuding the vaue of any pension contributions) of over 150,000 and an income (excuding pension contributions) in excess of 110,000 your annua aowance may be reduced. Taking certain types of retirement benefit wi mean that you wi be subject to the money purchase annua aowance (MPAA) of 4,000. You wi sti have an annua aowance of 40,000 in tota, but no more than 4,000 can be paid into defined contribution (money purchase) pensions eaving the baance of 36,000 for other pension savings. You may be abe to carry forward unused annua aowance from the previous three tax years. You wi not be abe to carry forward unused annua aowances from previous years to increase the 4,000 MPAA. The provider paying your retirement benefits wi te you if the MPAA appies to you. You don t get tax reief for any money you transfer into this pan from another scheme. Your pension pot wi grow free of UK income and capita gains tax. Some investment returns may be received with tax credits, or after tax deductions, which cannot be recaimed. When you take your pension benefits, you can normay take up to 25% of your pension pot as a tax-free cash sum. You may be abe to take more than this if your pan incudes a specific type of transfer payment; if this appies to you, we et you know. You may have to pay income tax on the retirement benefits you take from your pension pan. Income payments and ump sum payments are both treated as income, and therefore the tax you pay wi depend on your persona circumstances and may be subject to change. If you die before taking your retirement benefits any cash sum we pay wi normay be free of inheritance tax. This information about tax is based on our understanding of the current aws of Engand and Waes and UK tax practice. The tax reief and tax you have to pay may change if you move overseas, or start working overseas, or work overseas on secondment from your empoyer. Tax rues may change. Future changes in aw and tax practice, or your own financia circumstances, coud affect your pension, retirement benefits and how much tax you have to pay. A financia adviser can give you more detais about your tax position. Where are the payments invested? We invest a payments in a fund or funds chosen for your pension scheme. Earier in this guide we tod you more about the fund(s) chosen for your pension scheme. You can continue investing in those funds or move your money to another fund or funds. If you want to do this pease contact us. We won t charge you for doing this, but we may imit the number of changes you can make. Each fund is divided into units of equa vaue. We use the payments to buy units in your chosen funds. The vaue of the units wi rise or fa depending on the investment performance of the funds. If you are invested in a With-Profit Fund this works differenty, as it shares out the returns earned by the fund to its investors through a system of bonuses. We may appy a market vaue reduction if money is moved out of the With-Profit Fund which means we can pay ess than the quoted vaue of the amount taken out. This is most ikey to happen foowing a arge or sustained fa in the stock markets or when investment returns are beow the eve we woud normay expect. We expain this in a bit more detai at aviva.co.uk/pension-essentias/investment-centre/ Regarding income drawdown: You cannot invest any income drawdown funds into the With-Profit fund (see Income drawdown section for detais). The funds have different aims and eves of risk. You can find more information about the funds and how many are avaiabe to you earier in this guide, and for more information head onine to aviva.co.uk/pension-essentias/ investment-centre/

17 You can change the funds your payments are invested in at any time. In certain circumstances, we may need to deay switching your funds as outined in your pan terms and conditions. Regarding income drawdown: If you switch your funds, the change wi appy to your whoe pan (both income drawdown funds and any accumuation funds you may have). What are the charges? We charge for managing your pan. The amount charged depends on the funds your pan invests in as they may have extra charges. You can find the detais of these charges onine at aviva.co.uk/pension-essentias. These charges wi reduce the vaue of your pension pan. We may increase our charges if the cost of managing your pan increases due to changes in taxation, reguation, the aw, and the cost of fund management. We te you if we do this. Fund manager expenses may be charged for some funds to cover the costs to the fund manager of running the fund. These expenses are connected with buying, seing, vauing, owning and maintaining the assets in the fund. The charge is made by reducing the price of each unit in the funds. The yeary rate of the fund manager expense charge may vary throughout the year. The charge depends on your choice of funds. To see which funds have this charge pease visit aviva.co.uk/pensionfund-info. A charge may aso be evied if you have received individua advice from a financia adviser and agreed to pay this charge through your pan. These charges wi reduce the vaue of your pan. Regarding income drawdown: We can t pay any charges for advice to your financia adviser from your income drawdown funds. We give you detais of the charges for your pan and the effect they have on your fund vaue. What happens to the pan if I die? If you die before you take a your retirement benefits, we can pay out the vaue of your pension pot as a cash sum. Aternativey your pension pot can be used to provide an income for your nominated beneficiaries. If you ve arranged your pan under a suitabe trust we pay any cash sum to the trustees. Can I transfer my pan? We don t charge for a transfer, but depending on investment performance, the amount transferred may be ess than the tota payments to your pan. Carefuy consider if transferring your pan is the right thing to do and compare the features of both schemes. Pease speak to a financia adviser if you re unsure. Regarding income drawdown: You can sti transfer your pan to another provider. The transfer wi appy to your whoe pan (both income drawdown funds and any accumuation funds you may have). Some providers may not accept this type of transfer. Can I cance or opt out of the pan? Yes, we send you either a canceation notice or detais on how to opt out with your information pack. If you receive a canceation notice, you can change your mind within 30 days from the ater of: the day we te you your pan starts. the day you receive your pan document. If you choose to opt out of your pension, you have a month to do so. If you decide you don t want the pan, we give you your money back. If you ve made a singe payment or transferred in your pension pan from another scheme, we may pay back ess than the payment made if the vaue of your pension pan has faen in this period. If your pan incudes a transfer from another pension scheme, the transferring scheme may not be wiing to take the transfer back or reinstate your benefits in their scheme. Your options then woud be to transfer to another provider who is wiing to accept it or reappy for a transfer to us. The canceation notice wi incude the address you must send it to if you change your mind about your pan. Aternativey, you can contact us at the address given overeaf. Your pan wi continue if: we don t receive your canceation notice within the 30 days you don t te your empoyer that you re opting out within a month. How wi I know how my pan is doing? We send you a statement each year showing the payments to your pan and the current fund vaue. You can transfer the vaue of your pension pan to another scheme at any time before you start taking your retirement benefits.

18 How to contact us If you d ike more information about your company s pension scheme, we recommend you first contact your empoyer, or you can contact us directy using the detais beow. If you d ike advice, for instance about how much you shoud pay into your pension pan or if you re not sure if this product is suitabe for you, pease speak to a financia adviser Monday to Friday 9am - 5pm We may monitor cas to improve our service. Other information How to compain If you ever need to compain, you can contact us at: Aviva Customer Reations PO Box 3182 Norwich NR1 3XE Teephone number: Emai: hepdesk@aviva.co.uk If you are not satisfied with our response, you may be abe to take your compaint to the Financia Ombudsman Service. The Financia Ombudsman Service can ook at most compaints and is free to use. You do not have to accept their decision and wi sti have the right to take ega action. Their contact detais are: Financia Ombudsman Service Exchange Tower London E14 9SR Teephone number: or Emai: compaint.info@financia-ombudsman.org.uk This won t affect your ega rights. Terms and conditions This Key Features document gives a summary of this pan. You shoud aso read the fu terms and conditions, which is the next section in this guide. Law hepdesk@aviva.co.uk Aviva PO Box 520 Surrey Street Norwich NR1 3WG The aws of Engand and Waes wi appy in ega disputes and your contract wi be written in Engish. We aways write and speak to you in Engish. We re reguated by the Financia Conduct Authority whose contact detais are: The Financia Conduct Authority 25 The North Coonnade Canary Wharf London E14 5HS We are aso reguated by the Prudentia Reguation Authority: The Prudentia Reguation Authority 20 Moorgate London EC2R 6DA Governed by an Independent Governance Committee Independent Governance Committees (IGCs) have been set up by workpace pension providers from Apri 2015, as part of reguatory changes by the Financia Conduct Authority (FCA). The introduction of IGCs provides greater protection for members and are designed to improve the governance of workpace pensions and hep ensure vaue for money. For more detais pease visit aviva.co.uk/pension-essentias/your-pensionscheme/igc/ Potentia conficts of interest There may be times when Aviva pc group companies or our appointed officers have some form of interest in the business being transacted. If this happens or we become aware that our interests, or those of our officers, confict with your interests, we take a reasonabe steps to manage that confict of interest. We do this in a way that treats a customers fairy and in ine with proper standards of business. Compensation Quaified advisers wi recommend that you buy products suitabe for your needs. You ve got ega rights to compensation if it s decided that you ve bought a pan that wasn t suitabe for your needs at that time. The Financia Services Compensation Scheme (FSCS) provides protection to consumers by aowing them to caim compensation in the event that an authorised financia services firm (such as Aviva Life & Pensions UK Limited) is unabe to meet caims made against it. Whether you quaify for any compensation under the FSCS wi depend on the type of investments you hod. This means that if your investments through Aviva Life & Pensions UK Limited are hed in externa funds, then you woud not be eigibe to make a caim for compensation under the FSCS in the imited circumstances where the externa provider is unabe to meet its obigations. Our fund factsheets show whether a fund is an externa fund and further detais can be found in Your Guide to Fund Factsheets. If you are not sure about the type of funds you are invested in you can ca us on or speak to your financia adviser.