Saving for your retirement in the BTRSS is quite simple!
You make regular payments during your working life, which are boosted by additional payments from BT (see the What will BT pay? page). These payments are then invested in your choice of one or more of a range of professionally managed funds and remain invested until you retire.
Your payments into a pension plan are subject to HM Revenue & Customs minimum and maximum rules - you can find further information in the Key Features Document from the Joining section of this website. You can also make additional one-off payments into your pension plan.
With effect from 6 April 2011, some higher-rate taxpayers may stop being eligible to receive extra tax relief. They may also suffer a tax penalty if they try to increase payments they make to their pension before this date. For further information, please download the Tax changes to pension plans announced in the 2009 budget factsheet, or seek financial advice.
At retirement the money built up in your pension fund is used to buy benefits that take the form of an annuity (this is a product that provides you with a taxable income for life. You may also be able to take up to 25% of the money in your pension fund as a tax-free lump sum. The Key Features Document explains the retirement options in greater detail and we recommend that you read this carefully.
You can also decide to leave your pension plan in the BTRSS if you decide to work beyond the BT retirement age of 65 (subject to agreement by BT). As long as you continue to make payments into the BTRSS, BT will also make payments. A point to note is that you must start taking your pension benefits by the time you reach the age of 75.
If you decide to leave BT before you retire, there are a number of options available to you:
- Leave your pension pot in the scheme as it is so that it continues to invest in your chosen funds until you decide to retire
- Transfer your pension pot to another pension arrangement – such as one provided by your new employer. Your new employer will confirm if this is possible.
- Continue to pay into the scheme subject to HM Revenue & Customs limits.
Please note that once you have left BT employment, BT would not normally make any additional payments to your retirement pot going forward.
If at any time you are unsure of what to do, in the first instance, contact Standard Life on 0800 066 5432. If you require advice on the transfer, payment and investment options, we strongly recommend that you speak to a financial adviser.
There may be a cost associated with this and you should note that neither BT nor Standard Life will be able to provide any advice to you. If you do not have your own financial adviser, you can find one in your area by visiting unbiased.co.uk
Please note: The link to unbiased.co.uk is outside Standard Life's website and will open in a new window. Standard Life is not responsible for the content of external internet sites.
