Pension FAQs, webinars and guides

Hello and welcome! Today we are going to be talking pensions.

One of the benefits you have of working for Aberdeen 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, Aberdeen are too!

My name is Greig and I am presenting today on behalf of your pension scheme provider, Standard Life.

I am going to help you understand how this pension plan works and what the benefits are of being a member of the scheme. We will also look at what to consider for combining pension plans and how Standard Life can help you transfer your legacy Aberdeen Group Flexible Retirement Plan into this new Aberdeen SLSPS Pension Scheme.

You can ask questions throughout the session, using the ‘Ask a Question’ feature on the Workcast dashboard.

I have my colleague Elaine with me today, and she’ll answer your questions as I run through the presentation.

At the end of the session, we’ll run through the questions and any common themes.

Note, I will only be able to answer general questions, not those specific to your own personal circumstances.

Please ask personal questions via the secure messaging service.

Your questions can only be seen by the 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.

So, this is what are we going to cover today

Think about the future – how much might you need?

How your pension plan works. This will include how you make contributions, when you can make changes and 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.

Combining pension plans – this will include Standard Life’s offer to help you transfer your legacy Aberdeen Group Flexible Retirement Plan into this plan, and also what to consider if combining other pension plans.

A review of our online support and the tools available

And finally further guidance.

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.

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 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 2025/26 is £11,973 a year, however, the amount you will actually receive will depend on your National Insurance record. Some people could get more, many could get less.

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.

I will now show you a demo of Standard Life’s Retirement Income tool that can give you an illustration of how much you might get with your Standard Life plans but you can also add in any other pension plans you have too. Also, if you have more than one Standard Life plan, the tool will include these plans.

www.standardlifepensions.com/retirement-income-tool

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. Tax rules could change in the future. 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 Another benefit for you being part of the company scheme, it’s not just you paying in, your employer 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.

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 payments are likely to be tax efficient. Let’s have a look at how this works. Your pension payments are made through a process called Salary sacrifice. This works by you agreeing to give up (or exchange) a portion of your salary every month in return for an employer pension payment. This amount is added to your employer’s contribution and paid in as an employer payment. 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.

Salary sacrifice payments don’t affect your non-pension benefits such as overtime, holidays or bonus. It’s a contractual agreement between you and your employer. Salary sacrifice won’t be right for everyone. It can affect other 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 Salary sacrifice might work for you, you may want to get guidance or advice.

Your company pension is one of the benefits of working for Aberdeen.

Here’s your scheme’s payment structure - you can see the corresponding employer rate that applies to your monthly contribution. Even though Aberdeen’s contribution is capped 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 payment.

Check My Benefits if you want to view your arrangement or make changes to your contributions. You can increase your contributions at any time, if you want to decrease contributions you can during annual benefit window.

On screen are examples of how Salary Sacrifice payments work. We’ve used a Basic rate salary example, with an employee payment of 1% and employer contribution of 17.10% - this includes the matched contribution and enhancement.

As your payment, 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 1% as the payment 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 the Trustee 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.

You also have what is called a selected fund range to choose from. This is a range of funds and lifestyle profiles that the Trustee has specifically selected for your scheme as they think they are appropriate options.

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.

So let’s look at the low-involvement options 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, 15 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. On screen we are also showing the Aberdeen funds used in this default option.

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. The Trustee 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 abrdn DC Growth Fund as an example – it’s the growth fund of the scheme’s low involvement option. There is a more expensive fund in the 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 the Trustee has negotiated with Standard Life 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 £26 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.

I am also going to let you know how Standard Life can help you transfer your legacy Aberdeen Group Flexible Retirement plan into this new pension plan.

We're starting the process off with pop-ups in your offices and this webinar.

We’ve contacted you to give you the option to transfer your pension savings from your legacy Aberdeen Group Flexible Retirement Plan into the abrdn (SLSPS) Pension Scheme. You can do this transfer yourself, but this would be a simplified process, just for the transfers between these plans.

I'll tell you a bit more about these communications in a moment. This offer will be open to you for a limited period of time - and will usually close after four weeks, then, within about a month of the date the offer closes, the transfer will be completed for you.

If you decide not to transfer at this time you can still do it yourself at a later date. We always try to keep the process as simple as possible, but it will require additional steps.

You’ll have received a communication from Standard Life and this will offer you the option to transfer your Aberdeen Group Flexible Retirement Plan into the Abrdn (SLSPS) Pension Scheme.

An example of the communication from Standard Life is on screen now. It does require action.

You’ll be able to click through to a web page, like this one, where you can read about the offer in full, and decide if it is right for you.

If you want to proceed, it’s as simple as clicking ‘Yes’, and accepting the terms & conditions that appear on screen.

Transferring won’t be right for everyone and our communication tells you what to consider. If you decide not to transfer now, you will be able to do it at a later date if you wish, but it will require additional steps. In the meantime, your previous pension plan will remain with where it is.

We have looked at how Standard Life can help transfer your legacy Aberdeen Group Flexible Retirement Plan into this one, and 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 – 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.

Right now, your beneficiaries normally don’t pay inheritance tax on your pension savings – they’re exempt from it. This is because your pension plan isn’t currently included when the value of your ‘estate’ is calculated.

In the October 2024 Budget, the Chancellor announced that from April 2027, pensions will be included when calculating the value of your estate and therefore could be subject to inheritance tax. The government are still figuring out the details of how this will work; inheritance tax is a complicated topic and things may still change. Once the final legislation is in place, we’ll give you more information.

We’ve touched on how you can leave a legacy, but let’s look at how that works in more detail.

We’ve covered that some pension savings can be passed on when you die. This could go to your beneficiaries in a few different ways. You can tell us who you want to benefit, and we’ll take your wishes into account. We’ll tell you how to do that in a moment. Any pension pots that you leave are usually not liable to inheritance tax under current rules, but that is likely to change.

And if you die before the age of 75, the recipients usually don’t have to pay income tax - although larger lump sums, might be subject to a tax charge.

If you die aged 75 or more, your beneficiaries may have to pay income tax.

If you’ve used your pension pot to purchase a guaranteed income via an Annuity, then what the beneficiary will receive, will depend upon how you set the annuity.

You can add and maintain your pension beneficiary details at any time, via online servicing or the mobile app.

For more information about payments, tax, and limits, take a look at our guide, the link is on screen.

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 you with access to a portal called My Benefits, which you can access from your company network without using additional login details as you have Single Sign On.

From My Benefits you have website access, which provides a host of important and key information about your plan including documents about joining the scheme, guides about investments, payments, and tax limits.

Remember through My Benefits you can check and change your payments.

You also have access to online servicing from this portal, online servicing is a dashboard where you can manage your pension plan securely and you’ll also find tools to help you make the most of your pension plan,

You will need a username and password for access outside of your company network and for the mobile app which we will look at now.

www.standardlifepensions.com/mobileapp

To help support you with your 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 our pension website standardlife.co.uk for information and guidance, as well as a suite of online tools. You can also send a secure message using the Standard Life mobile app or online servicing.

Your employer can also offer support on queries you have relating to employment with Aberdeen. If anyone has questions about the Defined Benefit plan, contact details are on screen.

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.

Read the Click & Transfer offer from Standard Life – it’s personal to you.

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, you will also be able to get your plan number via My Benefits.

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.

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.

We have looked at how your abrdn (SLSPS) Pension Scheme works including contributions and how to make changes.

Your plan will be invested for you and if you want to do something different you can.

We also touched on how you can access your pension plan and where to get online tools and support.

Remember to read the Standard Life communication about how Standard Life can help you transfer your Aberdeen Group Flexible Retirement Plan into this new plan.

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.