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Pension FAQs, webinars and guides
Frequently Asked Questions
Your pension is invested with the aim of growing your money over the longer term. However, its value can go down as well as up and you could get back less than was paid in.
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How much will I pay into my pension plan?
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Where will my money be invested?
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What is Responsible Investing and Stewardship?
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What happens if I leave the company?
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How can I manage my plan and find out what it is worth?
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Can I leave this pension plan?
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I have multiple pension plans - what can I do with them?
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What charges do I have to pay?
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What type of pension plan is this and who provides it?
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How do I join this pension plan?
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What happens to your pension plan when you die?
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How can I access my money?
Webinar recordings
Getting to know your BT Retirement Saving Scheme
Hello and welcome! Today we are going to be talking pensions. One of the benefits you have of working for BT is that you’re a member of a workplace pension scheme, so you’re already saving for your future. And it’s not just you, BT are too!
My name is Asmira, and I am presenting today on behalf of your pension scheme provider, Standard Life. I am going to help you understand how your BT Retirement Saving Scheme works and how you can track and manage it online. You can ask questions throughout the session, using the ‘Ask a Question’ feature on the WorkCast dashboard. I have colleagues with me today and they’ll answer as many questions as they can during the presentation then at the end we will review the common themes with you.
Note, we will only be able to answer general questions, not those specific to your own personal circumstances. If you have any questions about your own plan details, please use the Secure Messaging service which I will talk about later. Your questions can only be seen by our panel, so feel free to ask what you like, it’s confidential.
If you’re viewing this as a recording, I’ll signpost throughout the presentation where you can go for further guidance and advice, for questions please use the secure messaging service via online servicing either on the dashboard or mobile app. You also have access to the Resources section where you will find links to useful guides and webpages.
Think about the future –how much might you need in retirement?
How does your pension plan work –contributions, investments and how can your access your pension? When we talk about investments it’s important to note that your pension savings are invested to give your money the potential to grow, although the value can go down as well as up, and you could end up with less than what was paid in.
We will look at combining pension plans and what to think about, a review of our online support and the tools available, and finally we see a summary of where you can get further help and there will be a checklist of things for you to consider.
For some of you, retirement may seem a long time away. So why should you think of the future now? The following slide features some key points that you may want to consider when it comes to your pension savings and retirement planning.
One of the considerations I mentioned on the previous slide was about maintaining your lifestyle. If you want to see what type of lifestyle you could have in retirement, the Pensions and Lifetime Savings Association (PLSA) has a website which hosts information about the Retirement Living Standards. This is based on independent research and has been developed to help picture what kind of lifestyle we could have in retirement. The figures are net of income tax and worked out in 3 tiers –minimum, moderate and comfortable.
For many people their private and state pensions and other savings could go a long way towards these costs. The full state pension for 2024/25 is £11,502.40 a year, you may need to add other costs depending on your circumstances, such as mortgage, rent, social care costs and any tax on pension income. Explore the categories in more detail at retirementlivingstandards.org.uk
Standard Life online servicing and the app have a Retirement Income tool where you can look at how much you might get in retirement and how much you might need to maintain your current lifestyle. This tool uses gross figures.
So, let’s look at how your pension works
It can sound complicated, but in simple terms, a pension plan is just a type of long-term investment plan where you save money for your future. One of the benefits of paying into a pension plan is that it’s normally very tax efficient compared with other types of investments. Another benefit for you being part of the company scheme, it’s not just you paying in, BT is also saving towards your future too.
In the end, the size of your pension pot will depend on a few things –how much you pay in, how your investments perform, how long you are invested for and the charges you pay. Another tax efficiency with your pension pot is your pension savings are not liable for additional tax, such as Capital Gains Tax on any investment growth and income. Your money is invested to give it the potential to grow. As with any investments though, the value can go down as well as up and you could get back less than was paid in. Normally you can access this money from age 55, which is rising to 57 on 6 April 2028.
I mentioned earlier that one of the benefits of paying into a pension plan is that your contributions are likely to be tax efficient. Let’s have a look at how this works.
Your pension contributions are made through a process called Smart. This works by you agreeing to give up (or exchange) a portion of your salary every month in return for an employer pension contribution. This amount is added to your employer’s contribution and paid in as an employer contribution. By agreeing to reduce your salary, you save on National Insurance payments and reduce the amount that’s subject to income tax. The payment is then invested in your chosen fund/s. Smart payments don’t affect your non-pension benefits such as overtime or bonus. It’s a contractual agreement between you and your employer. Smart payments won’t be right for everyone. It can affect transactions and borrowing levels that are based on salary.
The Government set a limit on how much you can pay into your pension plan every year without incurring tax charges. This means total payments into all pension plans you might have, including your employer’s payment. If you’re not sure about how Smart might work for you, you may want to get guidance or advice
Your company pension plan is one of the benefits of working for BT. Here’s your scheme’s contribution structure - you can see the corresponding employer rate that applies to your monthly contribution. If you are on a legacy structure and paying less, you can move onto this one.
Even though BT’s contribution is capped at 10% you can pay more than the limits on screen. The Government set a limit on how much you can pay into your pension plan every year without incurring tax charges. This means total payments into all pension plans you might have, including your employer’s contribution. You can make changes to your pension contributions anytime via My Benefits
Onscreen is an example of how Smart payments work. We’ve used a Basic rate salary example, with an employee contribution of 5% and BT contribution of 10%. As your contribution, in the second column, benefits from a National Insurance and income tax saving, the net cost to you is the reduced figure in the far-right column. Now look at the ‘Total into Pension Plan’ column, which shows the total amount invested in your chosen fund/funds each month. It is important to note that the example shows 5% as the contribution level used but be aware you may be able to pay more than this depending on your circumstances and what you feel is best for you. Figures may be subject to rounding
Now let’s take a look at investments.
When it comes to investing, there are different choices for you, no matter how confident you feel about investments. If you don’t want to make any active decisions, and you don’t choose your own investment option your pension payments will automatically go into the low involvement (sometimes referred to as default option). This has been chosen as it’s believed to be broadly appropriate for most people in the company. Unless you choose another option, your money will stay invested in this option until you retire.
It’s managed by experts on your behalf, and it is designed for the long haul. it’s set up to make sure that by the time you reach retirement, your money is in the right type of investments to match how you want to take your money. You should check if this option is suitable for you.
If you want a wider selection, there’s the full fund range which gives you access to around 300 options. It contains individual funds and lifestyle profiles/strategic lifestyle profiles. If you choose individual funds, it’s up to you to regularly monitor their performance and make sure you’re in appropriate funds as you get nearer retirement. It’s important to note that your pension savings are invested to give your money the potential to grow, although the value can go down as well as up, and you could end up with less than what was paid in.
Standard Life Sustainable Multi Asset Universal (PP 10 Year) Strategic Lifestyle Profile focuses on the areas of responsible investing that can help grow your pension. It does this by not investing in companies involved in activities that we believe could present a risk; for example, those involved in activities such as controversial weapons or tobacco production. At the same time, it invests more in companies that could provide opportunities, like those focused on carbon reduction or in green technology. And thirdly, the investment managers will use stewardship to drive positive change in the companies they invest.
It’s important to note it is the amount of your pension that is invested responsibly within Sustainable Multi Asset will depend on where you are in your retirement journey. If you prefer to discover options that align your investments to your own values and preferences, you may have further responsible investment options available to you. You can find more information on these options in your Company pension website and the Investment Options page or via the Investment Hub at your online servicing dashboard.
Let’s look at the Do it for me option for your scheme. As I said, if you haven’t made any other investment decision this will be where your money is automatically invested and where it will stay. So it’s important you consider if this is right for you. Your default option is Universal. When you’re far away from retirement your money will be invested in a fund which offers growth potential over the longer term. For this lifestyle profile, 10 years before your chosen retirement date, your money will gradually move into lower risk investments designed to give you the flexibility to take your money the way you want when you retire. This will happen automatically – you don’t need to do anything. Other lifestyle profiles are available, so you can find one that’s most appropriate for your retirement plans. If you don’t choose a lifestyle profile but self-select from our wider fund range, you’ll be responsible for making any changes as you get closer to retirement
When you have a pension there are charges for investing in funds. BT has negotiated with Standard Life to reduce this charge through a rebate. This is another benefit of being in this workplace pension – you wouldn’t get this discount if you invested in this fund outside the scheme. The amount you’ll be charged depends on which fund or funds you’re invested in and how much money is in it. We’re using the Standard Life Sustainable Multi Asset (PP) Pension Fund as an example – it’s the growth fund of the scheme’s low-involvement option. The fund management charge covers costs of managing your investments. Additional expenses may be deducted from some funds and include things like trustee, registrar, auditor and regulator fees. The rebate is the amount BT has negotiated with SL to effectively reduce the charge. Even if you leave your employer, you’ll keep this discount as long as the plan stays with Standard Life. Over the long term, the effective total annual fund charge is close to what you will pay. This is equivalent to £18 for every £10,000 invested. You will also get a discount if you choose a different investment option/s available for your plan. Charges and the rebate are all regularly reviewed and can change in the future.
Let’s look at your options if you have more than one pension plan. If you’ve worked for more than one employer, you may do. I’ll explain why combining other pension plans with this one might be a good idea but also the important things you need to think about before you decide if it’s right for you.
If you have other pensions with other providers, you can consider transferring them to keep them all in one place. Now, with pension transfers there are a few potential benefits –CLICK: for example combining your pension into one may make it easier to keep track of, with one online portal to view all your information. It also means you’d have one provider to deal with which means one annual statement and less admin. Transferring may also save you money – your plan with Standard Life will benefit from a reduction in charges negotiated by your employer – we call that your scheme rebate -so over the long-haul check if you could potentially be paying less in charges.
However, combining pensions won’t be right for everyone – there are a few important things to consider. For example, there could be exit fees or transfer penalties from your current provider, so you’d need to check this. Another consideration is what type of pension plan you have elsewhere, there may be valuable bonuses or guarantees attached to the plan so you may need to consider financial advice to ensure it is right for you. You can get information about transferring pensions online and you can start the process via your Online servicing dashboard or the Standard Life app.
Let's now look at how you can take your pension.
Now let’s look at your options when you retire. The government set rules about this, and they might be different when you retire, but we’ll explain what the rules are now. You can normally access your pension from age 55. This will rise to 57 on 6 April 2028. With each of the options you can usually take up to 25% of your pot as a tax-free lump sum. Then, there are options on how you can take the rest:
You can purchase a guaranteed income for life (also known as an annuity).
You can take a flexible income (also known as drawdown) so you can take income when it suits you.
Take your pension pot as one or more lump sums over a number of years.
You can also do a combination of these options.
You should shop around and consider other options to find the right product for you. Whatever you decide, you’ll have to make sure that it has a level of risk that you’re comfortable with, and that you understand the tax implications. On your company pension website and on standardlife.co.uk we have retirement tools that can help you explore these options and discover which one might be right for you.
No-one likes to think about this, but it’s worth knowing that your pension pot could continue to help your loved ones after you’ve gone. Let’s now look at what happens to your pension pot when you die and also how you can check and update your own beneficiary details online or through the Standard Life app.
Whatever money is still invested in the pot when you die could go to your beneficiaries. You can tell us who you want to benefit, and we will take your wishes into account. It’s easy to do this using the mobile app, or online. Please note this is your guidance, it’s not legally binding. It’s important to keep your details up to date, particularly if your family circumstances change.
Any pension pots that you leave are usually not liable to inheritance tax. And if you die before the age of 75, the recipients usually don’t have to pay income tax though any lump sums above the lump sum and death benefit allowance will be subject to a tax charge.
If you die aged 75 or more, your beneficiaries may have to pay income tax. Flexi-access drawdown is one of the ways a beneficiary can use an inherited pension pot. If chosen, it will allow:
Fund remain invested in the pension scheme under an arrangement set up for the beneficiary
The beneficiary to draw what they need from this pot at any time until the pot is exhausted, or until the pot is used to buy an annuity
Drawing income from inherited pension pots does not trigger the money purchase annual allowance (MPAA), so it doesn't restrict the beneficiary's ability to fund pensions. See our guide for more information.
Please be aware that if you have used your pension pot to purchase a guaranteed income via an Annuity, then what those that matter will receive, will depend upon how you set the annuity up when buying this product. Your pension plan Death Benefit Nomination Form is separate from any Life cover benefit you may have.
You can get information on how your pension plan works plus various retirement planning tools online. Support through your online servicing dashboard, mobile app or our websites will continue to evolve so when you visit these you may find new features. Standard Life provides a website which contains a host of important information about your plan. This includes documents about joining the scheme, an investment guide and a guide about payments, tax and limits. The web address is btretirementsavingscheme.com and you don’t need log in details to access this website.
Tools for pension and retirement planning can be found at www.standardlife.co.uk. However, you will need login details for Online servicing, which can be accessed through a shortcut on the website. Online servicing is a secure portal where you can manage your own pension plan.
The username and password you set up for Online servicing when accessing your plan away from the office can also be used for the Standard Life mobile app. The Standard Life mobile app allows you to manage your pension plan on the go and you can download it from the App Store or Google Play Store for Android devices.
I will now show a short video of how you track and manage your pension plan through the Standard Life mobile app. You will see here how you can access planning tools and keep information up to date, such as your pension beneficiary details.
To help support you with your pension and retirement options there are lots of places to find support; We recommend you get appropriate guidance or advice before making any decisions. Gov.uk can give you more information on taxation, state pensions and general pension queries. MoneyHelper provides government-sponsored financial guidance. From age 50 you can get free impartial guidance from Pension Wise, a service from MoneyHelper. You should visit their website. It's important to shop around and compare providers. Other providers may offer a higher level of retirement income, and access to different options more suited to your individual circumstances.
Standard Life also supports you in various ways. You can use your pension website btretirementsavingscheme.com and standardlife.co.uk for information and guidance, as well as a suite of online tools. The BT Helpline at Standard Life can also be contacted by phone, or secure messaging at Online servicing, which is the quickest and most secure way of getting in touch. You can also send a secure message via the Standard Life mobile app.
Your employer can also offer support on queries you have relating to employment with BT and you can get more information on the BTRSS and your options at My Benefits. If you’re unsure about what’s right for you or want advice based on your circumstances and your goals speak with your financial adviser. If you don’t have a financial adviser, you can find one using the directory at MoneyHelper.
Log in at standardlife.co.uk and download the Standard Life mobile app - registering takes minutes and you’ll need your plan number which can be found on any communication from Standard Life.
Explore the tools and educational material available –it should help you feel more confident about a range of topics and guide you to making more informed decisions.
Review your payments at My Benefits.
Check in on your investments, do they still meet your needs? You can get more information on your investment options online.
Review your selected retirement age –doing so means you’ll receive communications from us at a more relevant time, help you plan better, and importantly, make sure your investments are aligned.
Add your beneficiaries so we know who your savings should go to in the event of your death –this could be loved ones or charities and causes close to your heart. Your pension benefits aren’t generally covered in your will, if you have one, so it’s important that we know your wishes.
Track down pensions from previous jobs, and if you feel it’s right for you, transfer them into your Standard Life plan.
The purpose of the session was to give you an introduction to the BT Retirement Saving Scheme and how it works. We have also seen how you can track and manage your pension plan online or via the Standard Life app and where you can get further guidance and support. If you have any questions, you can contact us via Secure Messaging Service, which is available on online servicing and the Standard Life mobile app. Thank you for listening and goodbye.
Getting ready for retirement
Hello, thank you for joining me for this Getting ready for retirement webinar. My name is Asmira, and I am presenting today on behalf of your pension scheme provider, Standard Life. In this presentation I am going to cover some considerations as you prepare for life in retirement, including options for taking an income. You can ask questions throughout the session, using the ‘Ask a Question’ feature on the WorkCast dashboard. I have colleagues with me today and they’ll answer as many questions as they can during the presentation then at the end we will review the common themes with you.
Note, we will only be able to answer general questions, not those specific to your own personal circumstances. If you have any questions about your own plan details, please use the Secure Messaging service which I will talk about later. Your questions can only be seen by our panel, so feel free to ask what you like, it’s confidential. If you’re viewing this as a recording, I’ll signpost throughout the presentation where you can go for further guidance and advice, for questions please use the secure messaging service via online servicing either on the dashboard or mobile app. You also have access to the Resources section where you will find links to useful guides and webpages.
Over the next 20 minutes I will refresh and enhance your knowledge of Pension planning and to help you find our online tools. This is what are we going to cover today. Getting ready –some things to consider when planning for retirement. Look at the different ways you can take your pension savings. We’ll look at how you may be able to give your pension plan a boost by combining other plans. What happens to your pension plan when you die? We’ll look at how it might be possible to leave a legacy. We will cover a lot in this presentation so there will also be a recap on the various places you can go for information, support and guidance.
It’s important to remember that your pension savings are invested to give your money the potential to grow, although the value can go down as well as up, and you could end up with less than what was paid in. Before we get started, please just note that this session is only for information and isn’t financial advice. If you’re not sure about your options, please seek financial advice. There is likely to be a charge for this. Note: Law and tax rules may change in the future. Your own circumstances and where you live in the UK will also have an impact on tax treatment.
There are a few things to think about, however far away you are from retirement, to help you make the most of your pension. As you plan your retirement, and think about how much money you might need, it’s a good idea to make sure you’ll be able to; cover the essentials, maintain your lifestyle, be prepared for any unexpected costs, and think about if you’d want to have something to pass on to family or friends. Typically, your pension plan doesn’t form part of your estate which means it isn’t subject to Inheritance Tax, under current legislation. We’ll have a look at this in a bit more detail later.
Standard Life did some research that showed more than half of retirees wish they had thought about their retirement finances at a younger age or had started saving earlier. One of the considerations I mentioned on the previous slide was about maintaining your lifestyle. If you want to see what type of lifestyle you could have in retirement, the Pensions and Lifetime Savings Association (PLSA) has a website which hosts information about the Retirement Living Standards. This is based on independent research and has been developed to help picture what kind of lifestyle we could have in retirement. The minimum, moderate and comfortable standards on screen show you what life in retirement could look like at the three different levels, and what a range of common goods and services could cost for each level. For many people their private and state pensions and other savings could go a long way towards these costs. The full state pension for 2024/25 is £11,502.40 a year, you may need to add other costs depending on your circumstances, such as mortgage, rent, social care costs and any tax on pension income. Explore the categories in more detail at retirementlivingstandards.org.uk.
Standard Life online servicing and the app have a Retirement Income tool where you can look at how much you might get in retirement and how much you might need to maintain your current lifestyle. This tool uses gross figures.
Plan ahead for a new start: Get guidance or advice about your retirement options. You can start by watching the personalised video on the Online servicing dashboard, which I will show you later, and also by using the tools there.
Find a sense of purpose and keep busy: You may want to consider volunteering or taking up hobbies, or maybe even getting a part-time job in retirement.
Get emotionally ready – discover what works for you: organisations like Age UK have useful information about preparing emotionally for retirement. You can find out more at www.ageuk.org.uk
Other things to consider in retirement is to stay connected with family and friends and to remain positive – you have earned it.
Speak with your financial adviser: If you are unsure about your options, speak with a financial adviser.
There is a lot of support available to help you. As a member of the BTRSS pension scheme you can automatically receive our Money Plus blogs. These are regular blogs about topical items such as retirement planning, cost of living crisis and market volatility. You can re-visit them at standardlife.co.uk/articles
Let's now look at how you can take your pension. There is a wide range of income sources that could fund your retirement.
Final Salary or Defined Benefit pension
You may have a Defined Benefit scheme from your current or previous employers
Defined Contribution pension
You’re a member of a Defined Contribution pension plan. It’s your own pension plan where you control how much you pay in, where that money is invested and how you access the money at retirement. This session aims to share the benefits of your Defined Contribution pension
Other sources of income
This could include spouses pension savings, ISAs, cash savings, rental properties and dividends
State Pension
Currently, for 2024/25 the full state pension pays £221.20 a week, the amount you will actually receive will depend on your National Insurance record. The State pension age is rising to 67, from 6 April 2028. It's due to rise again to 68 by 2046 and may continue to rise over time. It's reviewed regularly and isn't guaranteed, so you could be waiting longer to receive your state pension.
Now let’s look at your options when you retire. The government set rules about this, and they might be different when you retire, but we’ll explain what the rules are now. You can normally access your pension from age 55. This will rise to 57 on 6 April 2028.
With each of the options you can usually take up to 25% of your pot as a tax-free lump sum. Then, there are options on how you can take the rest:
You can purchase a guaranteed income for life (also known as an annuity).
You can take a flexible income (also known as drawdown) so you can take income when it suits you
Take your pension pot as one or more lump sums over a number of years.
You can also do a combination of these options.
You should shop around and consider other options to find the right product for you. Whatever you decide, you’ll have to make sure that it has a level of risk that you’re comfortable with, and that you understand the tax implications. On your company pension website and on standardlife.co.uk we have retirement tools that can help you explore these options and discover which one might be right for you.
Flexible income allows you to take your income as and when you want it.
Can usually take 25% of pension fund Tax Free with the remaining amount staying invested.
Withdrawals in excess of tax-free entitlement are taxed as earned income.
You need to be aware withdrawing too much, especially if investments aren't performing as expected, could mean you run out of money before you planned. It's important to keep your eye on your investments as they can go down as well as up and you could get back less than invested.
It's also possible to combine Flexible income with other benefit options -for example, taking drawdown from part of the fund and using the remainder to buy a lifetime annuity to provide a guaranteed income.
You may wish to shop around and consider other options to find the right product for you.
Your entitlement to means-tested state benefits, if applicable, may be affected if you take a lump sum or income from your pension savings
Taking a flexible income can restrict the amount of tax-efficient pension savings that can be made in the future. Your annual allowance could reduce to £10,000 as soon as you trigger flexible income by taking more than your tax-free lump sum. The Annual allowance is the maximum you and/or your employer can contribute to ALL your pension plans without facing an extra tax charge. Currently, the standard Annual Allowance is £60,000 each year, but it could be lower if you receive high levels of income.
You can normally take 25% of your pension fund tax free and use the remaining amount to purchase a guaranteed income.
It is guaranteed for the rest of your life but once it’s set up, you can’t normally change it.
You have various options with a guaranteed income.
Ill health, certain lifestyle factors, your age, postcode and the income options you choose are all taken into account and will be assessed differently by all companies, meaning some will offer more and some less.
As well as offering our own annuities, Standard Life have a service that can shop the whole of the market for you and ensure you get the highest income and annuity options that are right for you. You can also research and shop around the open market yourself, so you don’t have to buy an annuity from our panel.
You may be able to get a higher retirement income by transferring to another provider. Standard Life do not charge to transfer your plan.
It's also possible to combine Guaranteed income with other benefit options -for example, buying an annuity with some of the pension savings and using the rest to provide a flexible income.
You can now withdraw money from your pension savings whenever you want, from age 55 (rising to 57 on 6 April 2028). The first 25% is normally tax free and most people will pay tax on the rest.
You may also be able to utilise the small pot rules; these allow you to cash in a small pension pot of £10,000 or less, if: you’ve reached age 55, the payment covers all your rights in the scheme. You can use this rule three times for personal pensions.
The limit on workplace pensions is different, so you’ll need to check with the scheme provider. Taking your pension savings in full could result in paying more tax than if you split it over several tax years.
Let’s look at your options if you have more than one pension plan. If you’ve worked for more than one employer, you may do. I’ll explain why combining other pension plans with this one might be a good idea but also the important things you need to think about before you decide if it’s right for you. If you have other pensions with other providers, you can consider transferring them to keep them all in one place. Now, with pension transfers there are a few potential benefits –CLICK: for example combining your pension into one may make it easier to keep track of, with one online portal to view all your information. It also means you’d have one provider to deal with which means one annual statement and less admin.
Transferring may also save you money –your plan with Standard Life will benefit from a reduction in charges negotiated by your employer –we call that your scheme rebate - so over the long-haul check if you could potentially be paying less in charges.
However, combining pensions won’t be right for everyone –there are a few important things to consider. For example, there could be exit fees or transfer penalties from your current provider, so you’d need to check this. Another consideration is what type of pension plan you have elsewhere, there may be valuable bonuses or guarantees attached to the plan so you may need to consider financial advice to ensure it is right for you. You can get information about transferring pensions online and you can start the process via your Online servicing dashboard or the Standard Life app.
If you’re thinking of transferring pension plans to Standard Life, there is a transfer checklist on your scheme website. The checklist contains questions and guidance on where to find the information you need; this reminds you to check things like benefits and exit fees. You can start the transfer process via your online servicing dashboard, or the Standard Life app and the process will ask you to confirm you have checked these requirements before you can conclude your transaction.
When considering a pension transfer be mindful there is no guarantee you'll get better fund growth as a result of transferring. You could lose valuable benefits or guarantees within your existing scheme. If unsure seek financial advice.
No-one likes to think about this, but it’s worth knowing that your pension pot could continue to help your loved ones after you’ve gone. Let’s now look at what happens to your pension pot when you die and also how you can check and update your own beneficiary details online or through the Standard Life app. Whatever money is still invested in the pot when you die could go to your beneficiaries. You can tell us who you want to benefit, and we will take your wishes into account. It’s easy to do this using the mobile app, or online. Please note this is your guidance, it’s not legally binding. It’s important to keep your details up to date, particularly if your family circumstances change.
Any pension pots that you leave are usually not liable to inheritance tax. And if you die before the age of 75, the recipients usually don’t have to pay income tax though any lump sums above the lump sum and death benefit allowance will be subject to a tax charge. If you die aged 75 or more, your beneficiaries may have to pay income tax.
Flexi-access drawdown is one of the ways a beneficiary can use an inherited pension pot. If chosen, it will allow:
Fund remain invested in the pension scheme under an arrangement set up for the beneficiary
The beneficiary to draw what they need from this pot at any time until the pot is exhausted, or until the pot is used to buy an annuity
Drawing income from inherited pension pots does not trigger the money purchase annual allowance (MPAA), so it doesn't restrict the beneficiary's ability to fund pensions. See our guide for more information.
Please be aware that if you have used your pension pot to purchase a guaranteed income via an Annuity, then what those that matter will receive, will depend upon how you set the annuity up when buying this product.
Your pension plan Death Benefit Nomination Form is separate from any Life cover benefit you may have. If you need to check or update your BT Group’s Core Life Assurance, then you can do this via My Benefits. The BT Group’s Core Life Assurance is not provided by Standard Life.
You can also request a State Pension forecast online. This is available by going onto the Gov.uk website and creating a personal online account. As you can see from the slide, it will show State Pension date, as well as a forecasted income amount. The payment is £221.20 a week from 6 April 2024.
You can get information on how your pension plan works plus various retirement planning tools online. Support through your online servicing dashboard, mobile app or our websites will continue to evolve so when you visit these you may find new features. Standard Life provides a website which contains a host of important information about your plan. This includes documents about joining the scheme, an investment guide and a guide about payments, tax and limits. The web address is btretirementsavingscheme.com and you don’t need log in details to access this website.
Tools for pension and retirement planning can be found at www.standardlife.co.uk. However, you will need login details for Online servicing, which can be accessed through a shortcut on the website. Online servicing is a secure portal where you can manage your own pension plan. The username and password you set up for Online servicing when accessing your plan away from the office can also be used for the Standard Life mobile app. The Standard Life mobile app allows you to manage your pension plan on the go and you can download it from the App Store or Google Play Store for Android devices.
I will now show a short video of how you track and manage your pension plan through the Standard Life mobile app. You will see here how you can access planning tools and keep information up to date, such as your pension beneficiary details.
The personalised video on your dashboard also uses your own information, like plan value and payments, to give you an illustration of what you could get. The video also outlines your options at retirement. Standard Life also provides tailored communication to members, including those starting out, people in the growth phase and members approaching retirement.
When exploring your options you should think about what you want your retirement income to do and think about how these options work and compare. Do research, use the tools and guides online and if you are unsure about your options or want advice based on your circumstances and goals then speak with your financial adviser. Let’s now look at where you can get more information, guidance and support.
To help support you with your pension and retirement options there are lots of places to find support; We recommend you get appropriate guidance or advice before making any decisions. Gov.uk can give you more information on taxation, state pensions and general pension queries
MoneyHelper provides government-sponsored financial guidance. From age 50 you can get free impartial guidance from Pension Wise, a service from MoneyHelper. You should visit their website. It's important to shop around and compare providers. Other providers may offer a higher level of retirement income, and access to different options more suited to your individual circumstances.
Standard Life also supports you in various ways. You can use your pension website btretirementsavingscheme.com and standardlife.co.uk for information and guidance, as well as a suite of online tools. The BT Helpline at Standard Life can also be contacted by phone, or secure messaging at Online servicing, which is the quickest and most secure way of getting in touch. You can also send a secure message via the Standard Life mobile app.
Your employer can also offer support on queries you have relating to employment with BT and you can get more information on the BTRSS and your options at My Benefits.
If you’re unsure about what’s right for you or want advice based on your circumstances and your goals speak with your financial adviser. If you don’t have a financial adviser, you can find one using the directory at MoneyHelper. Also, BT have negotiated preferential terms for retirement advice, please visit the BT intranet for more details.
We have looked at considerations for retirement planning and covered the different retirement income options available. Here’s some suggestions for what to consider doing next:
Log in at standardlife.co.uk and download the Standard Life mobile app – registering takes minutes and you’ll need your plan number which can be found on any communication from Standard Life.
Explore the tools and educational material available –it should help you feel more confident about a range of topics and guide you to making more informed decisions.
Review your selected retirement age –doing so means you’ll receive communications from us at a more relevant time, help you plan better, and importantly, make sure your investments are aligned.
Review your payments at My Benefits.
Add your beneficiaries so we know who your savings should go to in the event of your death –this could be loved ones or charities and causes close to your heart. Your pension benefits aren’t generally covered in your will, if you have one, so it’s important that we know your wishes.
Check in on your investments, do they still meet your needs? You can get more information on your investment options online.
Track down pensions from previous jobs, and if you feel it’s right for you, transfer them into your Standard Life plan.
The purpose of the session was to cover considerations as you prepare for life in retirement, including options for taking an income. We have also seen how you can track and manage your pension plan online or via the Standard Life app and where you can get further guidance and support. If you have any questions, you can contact us via Secure Messaging Service, which is available on online servicing and the Standard Life mobile app. Thank you for listening and goodbye.
Understanding investments
Hello and welcome! Thank you for joining me for this webinar, Understanding Investments. My name is Asmira, and I am presenting today on behalf of your pension scheme provider, Standard Life. I am going to help you understand how investments work and your BTRSS investment options.
You can ask questions throughout the session, using the ‘Ask a Question’ feature on the WorkCast dashboard. I have colleagues with me today and they’ll answer as many questions as they can during the presentation then at the end we will review the common themes with you. Note, we will only be able to answer general questions, not those specific to your own personal circumstances. If you have any questions about your own plan details, please use the Secure Messaging service which I will talk about later. Your questions can only be seen by our panel, so feel free to ask what you like, it’s confidential. If you’re viewing this as a recording, I’ll signpost throughout the presentation where you can go for further guidance and advice, for questions please use the secure messaging service via online servicing either on the dashboard or mobile app. You also have access to the Resources section where you will find links to useful guides and webpages.
So, this is what are we going to cover today; A quick overview of how your pension plan works before looking at your BTRSS investment options, we will look at Responsible investment, you can access a lot of supporting information online and via your online servicing dashboard you have an investments hub. If you are researching fund information you can get details from fund fact sheets. And finally we will cover where you can get other support and cover a checklist with points for you to consider.
It’s important to note that your pension savings are invested to give your money the potential to grow, although the value can go down as well as up, and you could end up with less than what was paid in. Before we get started, please just note that this session is only for information and isn’t financial advice. If you’re not sure about your options, please seek financial advice. Note: Law and tax rules may change in the future. Your own circumstances and where you live in the UK will also have an impact on tax treatment.
So, let’s look at how your pension works.
It can sound complicated, but in simple terms, a pension plan is just a type of long-term investment plan where you save money for your future. One of the benefits of paying into a pension plan is that it’s normally very tax efficient compared with other types of investments. Another benefit for you being part of the company scheme, it’s not just you paying in, BT is also saving towards your future too.
In the end, the size of your pension pot will depend on a few things –how much you pay in, how your investments perform, how long you are invested for and the charges you pay. Another tax efficiency with your pension pot is your pension savings are not liable for additional tax, such as Capital Gains Tax on any investment growth and income. Your money is invested to give it the potential to grow. As with any investments though, the value can go down as well as up and you could get back less than was paid in. Normally you can access this money from age 55, which is rising to 57 on 6 April 2028.
Now let’s take a look at investments. Your pension payments are invested in pension funds, which are then invested in different types of investments which are known as asset classes. These have different levels of risk and potential returns. As you can see from this chart, there’s a trade-off –It is likely you’ll have to take on more risk if you want the potential for higher returns.
The different types of asset classes are shown on screen:
Money Market Instruments include deposits with banks and building societies, as well as governments and large companies.
Bonds are essentially loans to a government or company.
Property investing includes direct investments in property and land as well as indirect investments such as shares in property companies.
Equities are part-ownership in a company, usually known as stocks and shares.
There are potential risks and returns with all the asset classes. For more information about asset classes, have a look at the ‘How to choose the right investment options for your pension’ guide. You can find this on your pension website at btretirementsavingscheme.com
When it comes to investing, there are different choices for you, no matter how confident you feel about investments. If you don’t want to make any active decisions, and you don’t choose your own investment option your pension payments will automatically go into the low involvement (sometimes referred to as default option). This has been chosen as it’s believed to be broadly appropriate for most people in the company. Unless you choose another option, your money will stay invested in this option until you retire. It’s managed by experts on your behalf, and it is designed for the long haul. it’s set up to make sure that by the time you reach retirement, your money is in the right type of investments to match how you want to take your money. You should check if this option is suitable for you.
If you want a wider selection, there’s the full fund range which gives you access to around 300 options. It contains individual funds and lifestyle profiles/strategic lifestyle profiles. If you choose individual funds, it’s up to you to regularly monitor their performance and make sure you’re in appropriate funds as you get nearer retirement. It’s important to note that your pension savings are invested to give your money the potential to grow, although the value can go down as well as up, and you could end up with less than what was paid in.
The Sustainable Multi Asset Universal Strategic Lifestyle Profile focuses on the areas of responsible investing that can help grow your pension. It does this by not investing in companies involved in activities that we believe could present a risk; for example, those involved in activities such as controversial weapons or tobacco production. At the same time, it invests more in companies that could provide opportunities, like those focused on carbon reduction or in green technology. And thirdly, the investment managers will use stewardship to drive positive change in the companies they invest.
It’s important to note it is the amount of your pension that is invested responsibly within Sustainable Multi Asset will depend on where you are in your retirement journey. If you prefer to discover options that align your investments to your own values and preferences, you may have further responsible investment options available to you. You can find more information on these options in your Company pension website and the Investment Options page or via the Investment Hub at your online servicing dashboard.
Let’s look at the Do it for me option for your scheme. As I said, if you haven’t made any other investment decision this will be where your money is automatically invested and where it will stay. So it’s important you consider if this is right for you. Your default option is Universal. When you’re far away from retirement your money will be invested in a fund which offers growth potential over the longer term. For this lifestyle profile, 10 years before your chosen retirement date, your money will gradually move into lower risk investments designed to give you the flexibility to take your money the way you want when you retire. This will happen automatically – you don’t need to do anything. Other lifestyle profiles are available, so you can find one that’s most appropriate for your retirement plans. If you don’t choose a lifestyle profile but self-select from our wider fund range, you’ll be responsible for making any changes as you get closer to retirement
As I mentioned earlier, you have alternative options available to you and you can get more information online. There’s the “How to choose the right investment options for your pension” guide and you can also get more details via your investment hub too. Please note that the information in the guide is accurate at the date it was published but you can get the latest fund information online.
When you have a pension there are charges for investing in funds. BT has negotiated with Standard Life to reduce this charge through a rebate. This is another benefit of being in this workplace pension – you wouldn’t get this discount if you invested in this fund outside the scheme. The amount you’ll be charged depends on which fund or funds you’re invested in and how much money is in it. We’re using the Standard Life Sustainable Multi Asset (PP) Pension Fund as an example –it’s the growth fund of the scheme’s low-involvement option. The fund management charge covers costs of managing your investments. Additional expenses may be deducted from some funds and include things like trustee, registrar, auditor and regulator fees. The rebate is the amount BT has negotiated with SL to effectively reduce the charge. Even if you leave your employer, you’ll keep this discount as long as the plan stays with Standard Life. Over the long term, the effective total annual fund charge is close to what you will pay. This is equivalent to £18 for every £10,000 invested. You will also get a discount if you choose a different investment option/s available for your plan. Charges and the rebate are all regularly reviewed and can change in the future.
We saw earlier that the ‘Do it for me’ default option focuses on the areas of responsible investing that can help grow your pension. Within the options available to you there are other responsible investment options so let’s look at responsible investment and what this involves.
Responsible investing means considering environmental, social and governance (ESG) risks and opportunities when deciding where to invest money. You might ask why this matters? Well, we believe it leads to better financial outcomes for investors. At a high level, it’s looking at how a company is managing ESG risks and opportunities and how that could affect its performance over the long term. And, if needed, encouraging the company to do better, known as stewardship which I'll touch on later. Examples of ESG considerations:
Environmental: How prepared a company is as we move to a low-carbon future; are they at risk of financial loss, or perhaps they’re in a growing sector of the future. Then there’s how environmental factors such as climate change affect a company’s ability to operate. This could include flood risk or resource scarcity. On the flipside, how is a company impacting the environment –for instance, its energy usage, waste disposal, land development and carbon footprint.
Social: A company’s relationship with its employees, suppliers and the community where it operates. Examples include labour practices, human rights, employee wellbeing, health schemes for staff and supplier relationships.
Governance: A company’s management and processes. These include who’s running the company, how the company and its finances are managed, and how it approaches salaries and strategy.
Stewardship is simply about talking to the companies we invest in (on your behalf) to manage risk, deliver value for you, as well as driving positive change. Understanding how they’re run and the risks and opportunities they face. Setting out the standards we expect them to meet in working towards a more sustainable and financially successful future. This is achieved using engagement and voting and in partnership with investment managers. You can find out more about responsible investing at standardlife.co.uk. If you want more information on ethical and shariah-compliant funds you might find our online guide useful, the address is on screen plus a link to this is also in the WorkCast Resources section.
If you want to research investments detail you can get more information online, this includes fund performance and charges detail.
Standard Life provides a website which contains a host of important information about your plan. This includes documents about joining the scheme, an investment guide and a guide about payments, tax and limits. The web address is btretirementsavingscheme.com and you don’t need log in details to access this website. Tools for pension and retirement planning can be found at www.standardlife.co.uk. However, you will need login details for Online servicing, which can be accessed through a shortcut on the website. Online servicing is a secure portal where you can manage you own pension plan. The username and password you set up for Online servicing when accessing your plan away from the office can also be used for the Standard Life mobile app. The Standard Life mobile app allows you to manage your pension plan on the go and you can download it from the App Store or Google Play Store for Android devices. On the BTRSS website there’s a short video that demos what you can do with the mobile app, you can also access this in the WorkCast resources.
From your dashboard you can view your plan value, transaction history, use personalised tools and get more detail on your investments. At your Online servicing dashboard you have access to various tools and guides plus your investment hub is here too. This gives you access to investments information, and you can check and change your investments here too. If you want to look at fund information including performance detail you can do so on via your online servicing dashboard or you can use the fund checker at standardlife.co.uk.
On screen is an example of performance detail shown on a fund fact sheet. For the latest fund data including past performance up to the most recent quarter period, please look online. Earlier we looked at investment risk and return and how that works for different types of investments. Each fund has a volatility rating which shows how much a fund could go up or down in value. Volatility is just one type of investment risk you should consider when making investment decisions. You can see the volatility rating on the fund factsheet Remember when looking at investments detail each fund has it’s own objectives and that past performance isn’t a guide to future performance. Also, think about how your pension works, it’s an investment therefore the value can go down as well as up and you could get back less than was paid in.
The Fund Fact sheet for a fund also provides more detailed information on where the fund invests, again an example is shown here. Earlier when we looked at responsible investment, I mentioned that involves screening the companies that a fund invests in, here’s an example where we can see on the fund fact sheet how that has worked for a fund. On this example fund factsheet we can also see how the fund invests in companies that could provide good responsible investment outcomes, it also covers stewardship and voting rights.
You can track your plan values and here you can also change your investments too. If you are unsure about your options, then please speak with a Financial Adviser.
We have explored how investments work and looked your BTRSS Investment options.
To help support you with your pension and retirement options there are lots of places to find support.
We recommend you get appropriate guidance or advice before making any decisions. Gov.uk can give you more information on taxation, state pensions and general pension queries
MoneyHelper provides government-sponsored financial guidance. From age 50 you can get free impartial guidance from Pension Wise, a service from MoneyHelper. You should visit their website. It's important to shop around and compare providers. Other providers may offer a higher level of retirement income, and access to different options more suited to your individual circumstances.
Standard Life also supports you in various ways. You can use your pension website btretirementsavingscheme.com and standardlife.co.uk for information and guidance, as well as a suite of online tools. The BT Helpline at Standard Life can also be contacted by phone, or secure messaging at Online servicing, which is the quickest and most secure way of getting in touch. You can also send a secure message via the Standard Life mobile app.
Your employer can also offer support on queries you have relating to employment with BT and you can get more information on the BTRSS and your options at My Benefits.
If you’re unsure about what’s right for you or want advice based on your circumstances and your goals speak with your financial adviser. If you don’t have a financial adviser, you can find one using the directory at MoneyHelper.
Log in at standardlife.co.uk and download the Standard Life mobile app – registering takes minutes and you’ll need your plan number which can be found on any communication from Standard Life.
Explore the tools and educational material available – it should help you feel more confident about a range of topics and guide you to making more informed decisions.
Review your payments at My Benefits.
Check in on your investments, do they still meet your needs? You can get more information on your investment options online.
Review your selected retirement age –doing so means you’ll receive communications from us at a more relevant time, help you plan better, and importantly, make sure your investments are aligned.
Add your beneficiaries so we know who your savings should go to in the event of your death –this could be loved ones or charities and causes close to your heart. Your pension benefits aren’t generally covered in your will, if you have one, so it’s important that we know your wishes.
Track down pensions from previous jobs, and if you feel it’s right for you, transfer them into your Standard Life plan.
The purpose of the session was to give you an understanding of how investments work and an awareness of your BTRSS Investment options. We have also seen how you can track and manage your pension plan online or via the Standard Life app and where you can get further guidance and support. If you have any questions, you can contact us via Secure Messaging Service, which is available on online servicing and the Standard Life mobile app. Thank you for listening and goodbye.
id
Manage your pension online
Once you've joined the pension plan, you can use your plan number to register online. This will give you access to your online account.
Here you can check your up-to-date pension value, see how much you might have when you retire, and explore your retirement options.
Explore our guides
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Understanding investments
Find out how and why the money in your pension plan is invested.
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Understanding pensions
A quick guide to explain how pensions work.
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Boosting your pension plan
Topping up your plan is easy and it could help you have the retirement you want.