Group Personal Pension Flex
Key features illustration
4
Group Personal Pension Flex
1/16
The Financial Conduct Authority is a financial services
regulator. It requires us, Standard Life, to give you this
important information to help you decide whether this
Group Personal Pension Flex is right for you. You should
read this document carefully so that you understand what
you are buying, and then keep it safe for future reference.
About this key features illustration
It gives you information to help you plan for retirement. You’ll find
details about charges and tax in your Key Features Document. The
Key Features Document may refer to a personal illustration that you
could request separately.
The rates used in these illustrations were correct at 06 April 2015.
However, they can change at any time.
We will
send you a
statement
each year so
you can keep
track of your
benefits.
What could my Group Personal Pension Flex be
worth?
To give you an illustration of what your benefits might be, the tables
on the following pages give you examples of what you could expect
when you retire.
The illustration assumes that you invest in the Strategic Lifestyle
Passive Plus III Profile.
There are other investment options available, and you can get a
personal illustration that suits your personal circumstances by calling
0345 279 8899. Calls may be monitored to protect both you and us
and help with our training. Call charges will vary.
2/16 Group Personal Pension Flex
Contents
4
Important Information about the figures
5
Important information about investment growth
rates, charges, and inflation
6
Tax relief
6
Lifestyle Profiling
7
Investing in the Strategic Lifestyle Passive Plus
III Profile
Table 1a shows what you could expect on retirement
8
How all charges will reduce the return on your
investment
Table 1b shows how all charges will reduce the return on
your investment
Group Personal Pension Flex
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Important information about the figures
• they’re estimates so your benefits could be very different - your
plan value could be worth less than you paid in
• we can’t predict future inflation and tax rates or how investments
will grow. Charges may also vary
• your taxable pension will also depend on interest rates when you
retire
We’ve assumed:
• your regular payment will increase in line with your salary each
year
• your salary will increase at a rate of 4.00% each year
• your taxable pension will
►
be paid monthly from your retirement date until you die
►
be paid for 5 years from the date it’s first paid even if you die
before the end of this 5 year period
►
increase in line with the Retail Price Index each year
►
not be paid to any dependant on your death
4/16 Group Personal Pension Flex
Important information about investment growth
rates, charges, and inflation
To help you understand the value of your investment in the future,
we have allowed for inflation in our calculations.
Some types of investment or savings plans, for example a savings
account or a cash ISA, do not take account of inflation, so may look
more attractive than they actually are if you’re comparing them to
this illustration.
The growth rates we believe are appropriate for the funds in this
illustration are shown in the table below. In line with Financial
Conduct Authority rules, we have reduced all growth rates by 2.5%
to allow for inflation.
The assumed growth rate varies depending on the investment mix of
each fund. Other funds may have different assumed growth rates.
Remember - funds showing higher growth rates might be more likely
to beat inflation, but they may also be more likely to lose money.
The illustrations in this document show what your benefits might be
when you retire, if your investment grows each year at the assumed
mid growth rates shown in the table below.
Assumed
Mid Growth
Rate
Ongoing
Fund
Charge
Standard Life Strategic At
Retirement Pension Fund
0.50%
1.009%
Standard Life Passive Plus III
Pension Fund
2.50%
1.028%
Standard Life Strategic Pre
Retirement (B) Pension Fund
1.00%
1.014%
Please note that, from 15 April 2015, Standard Life Strategic At Retirement
Pension Fund and Standard Life Strategic Pre Retirement (B) Pension Fund
will be called Standard Life At Retirement (Active Plus Universal) Pension Fund
and Standard Life Pre Retirement (Passive Plus Universal) Pension Fund
respectively.
Group Personal Pension Flex
5/16
Tax Relief
Any employee payments include basic rate tax relief. For example
for a 5% employee payment, you would pay 4% with the remaining 1%
being basic rate tax relief.
We’ll claim this tax relief for you from HM Revenue & Customs and
invest it in your plan. If you are a higher or additional rate taxpayer
you’ll need to claim the extra tax relief through your tax return.
If you’re paying through salary sacrifice, you can’t claim tax relief on
those payments, because you don’t pay tax on the salary you give
up.
Lifestyle Profiling
Lifestyle profiling means we’ll automatically make changes between
funds as you approach retirement. We’ll do this gradually each
month. The table below shows how funds in the Strategic Lifestyle
Passive Plus III Profile will be invested throughout the term of your
plan.
Number of years from
retirement
10
9
8
7
6
5
4
3
2
1
3
months
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Standard Life Strategic At
Retirement Pension Fund
0%
0%
0%
0%
0%
0%
12%
28%
48%
72%
100%
Standard Life Strategic Pre
Retirement (B) Pension Fund
0%
10%
20%
30%
40%
50%
48%
42%
32%
18%
0%
Standard Life Passive Plus III
Pension Fund
6/16 Group Personal Pension Flex
Investing in the Strategic Lifestyle Passive Plus III
Profile
What your benefits might be:
To give an illustration of what your benefits might be, simply:
1. Choose the salary closest to yours from the list on the left hand
side. This will identify which table you should use.
2. Next, find the age closest to your age now, and the age at which
you want to retire.
3. This gives you an idea of what your taxable pension income each
year could be in today’s prices, allowing for the effect of future
inflation.
The figures are based on a monthly payment of 10.00% of salary.
If your payments or your salary are more or less than shown then
the illustrations can be adjusted proportionately.
Table 1a - What your benefits might be
Salary
Your age now 20
£20,000
Retire at 65
£4,280 £3,610 £3,010 £2,450 £1,950 £1,490 £1,060 £682
25
Retire at 60
£2,970 £2,460 £2,010 £1,590 £1,210 £868
25
30
55
£553
£267
50
55
60
£331
Retire at 65
£8,560 £7,230 £6,020 £4,910 £3,900 £2,980 £2,130 £1,360 £663
Retire at 60
£5,940 £4,930 £4,020 £3,180 £2,420 £1,730 £1,100 £535
40
45
50
Your age now 20
35
40
45
£40,000
30
35
40
Salary
25
30
35
45
50
55
60
Salary
Your age now 20
£60,000
Retire at 65
£12,800 £10,800 £9,030 £7,370 £5,850 £4,470 £3,200 £2,040 £994
60
Retire at 60
£8,910 £7,400 £6,030 £4,770 £3,640 £2,600 £1,660 £803
Group Personal Pension Flex
7/16
How all charges will reduce the return on your
investment
The figures in table 1b are based on
• a current salary of £20,000, increasing by 4.00% each year
• a total monthly payment of 10.00% of salary
• a retirement age of 65
The examples are for retirement at age 65. For retirement at age 60,
add 5 years to your age just now for the columns that will apply to
your plan.
Remember
all of the figures
in this table
have been
reduced by 2.5%
a year to allow for
inflation.
The transfer value shown in column C assumes your investment
grows at the mid rate each year. It’s also the amount available to buy
a taxable pension if you’re old enough.
The table shows that charges reduce the return on your investment.
The reduction from the amount shown at retirement in column B to
the amount shown in column C means that charges take the
average growth rate down. The percentage this reduces to is shown
in the ‘Reduction in growth after plan and investment charges are
taken’ row at the bottom of each table.
You can use the reduction in growth figures to compare charges
between similar products.
The difference between
these 2 columns shows
the effect of the charges
A
B
C
At end of
year
The
payments
into your
plan
Before
charges
are taken
If only
plan and
investment
charges
are taken
1
£1,951
£2,000
£1,990
3
£5,797
£6,240
£6,140
5
£9,575
£10,800
£10,500
Final Year
£36,345
£54,000
£48,700
Reduction in growth after plan and
investment charges are taken
1.8% to
0.7%
8/16 Group Personal Pension Flex
In this example, allowing for the assumed
investment growth on funds, 1.8% is the
growth achieved if there were no charges
and 0.7% is the growth achieved after
allowing for charges
Table 1b (Strategic Lifestyle Passive Plus III Profile)
Your age
just now
Age 20 to Age 50 - illustrative
values for years 1, 3 & 5*
C
A
At end of
year
The
payments
into your
plan
Before
charges
are taken
If only
plan and
investment
charges
are taken
The
payments
into your
plan
Before
charges
are taken
If only
plan and
investment
charges
are taken
1
£1,951
£2,000
£1,990
£1,951
£2,000
£1,990
3
£5,797
£6,240
£6,140
£5,797
£6,210
£6,120
5
£9,575
£10,800
£10,500
£9,575
£10,600
£10,400
£18,758
£22,500
£21,300
A
B
Age 55
Final year
B
Reduction in growth after plan and
investment charges are taken
1.3% to
0.3%
Your age
just now
Age 60
At end of
year
The
payments
into your
plan
Before
charges
are taken
If only
plan and
investment
charges
are taken
1
£1,951
£1,990
£1,980
3
£5,797
£6,130
£6,040
Final year
£9,575
£10,400
£10,100
A
B
Reduction in growth after plan and
investment charges are taken
C
C
0.9% to
-0.1%
* For ages 20 to 50, the values for years 1,3 & 5 are the same for all ages
Group Personal Pension Flex
9/16
Table 1b (continued)
The values in the final years for ages 20 to 50 are shown in the tables below.
Your age
just now
Age 20
C
A
At end of
year
The
payments
into your
plan
Before
charges
are taken
If only
plan and
investment
charges
are taken
The
payments
into your
plan
Before
charges
are taken
If only
plan and
investment
charges
are taken
Final year
£79,680
£196,000
£155,000
£70,781
£158,000
£128,000
A
Age 25
B
Reduction in growth after plan and
investment charges are taken
B
2.1% to
1.1%
C
2.1% to
1.0%
Your age
just now
Age 30
C
A
At end of
year
The
payments
into your
plan
Before
charges
are taken
If only
plan and
investment
charges
are taken
The
payments
into your
plan
Before
charges
are taken
If only
plan and
investment
charges
are taken
Final year
£62,070
£125,000
£104,000
£53,476
£98,000
£83,800
A
Age 35
B
Reduction in growth after plan and
investment charges are taken
2.0% to
1.0%
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B
C
2.0% to
0.9%
Table 1b (continued)
Your age
just now
Age 40
C
A
At end of
year
The
payments
into your
plan
Before
charges
are taken
If only
plan and
investment
charges
are taken
The
payments
into your
plan
Before
charges
are taken
If only
plan and
investment
charges
are taken
Final year
£44,927
£74,200
£65,200
£36,345
£54,000
£48,700
A
Age 45
B
Reduction in growth after plan and
investment charges are taken
1.9% to
0.8%
Your age
just now
Age 50
At end of
year
The
payments
into your
plan
Before
charges
are taken
If only
plan and
investment
charges
are taken
Final year
£27,651
£36,900
£34,100
A
B
Reduction in growth after plan and
investment charges are taken
B
C
1.8% to
0.7%
C
1.6% to
0.5%
Group Personal Pension Flex
11/16
Notes
Where you can take a tax‑free lump sum, your entitlement is
normally 25%. The amount you’ll be able to take may be different
depending on your allowance on 5 April 2006. Please speak to your
financial adviser.
This illustration does not take account of the Lifetime Allowance.
This is an HM Revenue & Customs limit on the total funds in pension
plans that can be used to give you benefits without having to pay a
tax charge on the funds.
Any reference to legislation and taxation is based on Standard Life’s
current understanding of law and HM Revenue & Customs practice
as at April 2015. Legislation and taxation will change over time. Tax
relief may be altered and the value to you depends on your financial
circumstances.
For more information on how much you should save for retirement,
please speak to a financial adviser. There may be a cost associated
with this.
The retirement planner tool on www.standardlife.co.uk could give
you useful information. Or, if your employer has set up their own
pension scheme website, you could get more information from there.
Glossary
inflation - will make prices higher, so if you’re going to plan for your future, you need to consider what
your pension will be able to buy. We have reduced some of the values in this illustration to allow for
this. For example, if prices rise by 2.5% a year, in 10 years from now £10,000 will only buy you what
£7,813 would buy you today. Using this example, we would show you the £7,813, not the £10,000.
Ongoing fund charge - is the total of the fund management charge and additional expenses. If you
want to see a breakdown, you’ll find it at www.standardlife.co.uk/funds
12/16 Group Personal Pension Flex
Group Personal Pension Flex
13/16
14/16 Group Personal Pension Flex
Group Personal Pension Flex
15/16
Standard Life Assurance Limited is registered in Scotland (SC286833) at
Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH.
Standard Life Assurance Limited is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority.
www.standardlife.co.uk
GPPFLEX10600A 0415 ©2015 Standard Life
16/16 Group Personal Pension Flex