When you join the Scheme, you are invited to give up part of your salary so that HBOS can pay the equivalent amount into the Scheme on your behalf – sometimes referred to as your ‘notional contributions’.
This way, you won't pay NI or tax on this element – reducing the cost to you, while still saving the same amount towards your retirement. You are free to choose the amount of salary you give up towards your pension – anything from 2% of your basic salary.
And don't forget that HBOS also makes significant contributions towards your retirement, depending on your choice.
If you don't want to give up part of your salary in this way, you can choose to make monthly contributions from your gross pay instead. You will still get income tax relief, but these contributions will be subject to NI deductions.
As a member of the Scheme, all contributions, including those from HBOS, are paid into your individual retirement account.
When you retire, you use your fund to buy a pension and, if you wish, other retirement benefits including a tax-free cash sum or a dependant's pension.
How much will I get get when I retire?
The size of your individual account when you retire will depend on:
- how much has been paid in by you and by HBOS
- where you chose to invest your money and the type of investments utilised
- the return that these investments provided
The amount of your pension you receive when you retire will depend on:
- the size of your individual account
- whether you have decided to take a tax-free cash sum
- the cost of buying the pension of your choice
Use the HBOS Pension Planner to see what your pension might look like when you retire.
Trustees
The Trustees are responsible for running the Scheme and include representatives from HBOS management and members.
more about how the scheme works
