Contributions calculator
Use the Contribution Calculator to see what effect a change to your personal contributions level would have on your take home pay and the overall amount that is invested in your Personal Account, once tax savings and the effect of Matching Employer Credits are taken into account. When you have decided the level that is right for you you should update your contribution rate via Workday.
The contributions calculator
Tax savings
Personal contributions you make will usually qualify for tax relief up to 100% of Pensionable Pay. If you participate in Pensions Plus, your salary will be reduced by the amount of your Pensions Plus contributions. If you choose not to participate in Pensions Plus, your personal contributions will be deducted from your salary. Whether or not you participate in Pensions Plus, there is a limit on the amount of pension contributions that can be made which qualify for tax relief. The current Annual Allowance is £60,000. More information on the Annual Allowance is available in the assumptions below, and in the Member Booklet.
Member Booklet
Membership of the Scheme provides you with valuable benefits, which are explained in detail in this guide.
Contribution matching
By electing to make personal contributions or Pensions Plus contributions yourself, you can also benefit from Matching Employer Credits as well as giving yourself the opportunity to build up a greater Personal Account for your retirement whilst you remain an employee of the Company.
The Company will match any personal contributions or Pensions Plus contributions up to a maximum of 5% of Pensionable Pay. This means that as well as getting the benefit of Employer Credits you can also get your own contributions doubled – see below.
| Employer Credits | Your Contributions | Matching Employer Credits | Total paid into your Personal Account |
|---|---|---|---|
| 8% | 6% (or above) | 5% | 19% (or above) |
| 8% | 5% | 5% | 18% |
| 8% | 4% | 4% | 16% |
| 8% | 3% | 3% | 14% |
| 8% | 2% | 2% | 12% |
| 8% | 1% | 1% | 10% |
| 8% | 0% | 0% | 8% |
Your guide to Pensions Plus
Assumptions
The Contribution Calculator is provided for general guidance only and the information shown is not to be taken as financial advice. Please make sure that you understand how it works and what information you are being given before using it. By using the Contribution Calculator you are agreeing to the following terms and conditions of use as follows:
Your contribution rate
Personal contributions you make will usually qualify for tax relief. So, for example, a basic rate taxpayer who pays 6% will have less than 5% deducted from Pensionable Pay.
There is a limit on the level of pension contributions that you can make which will qualify for tax relief. In most circumstances you will qualify for tax relief on your personal contributions up to 100% of salary provided that this remains within the Annual Allowance for that tax year. From the 2023/24 tax year this limit has been set at £60,000. You can carry forward unused allowance from up to three previous years.
Please note that if you are a higher earner (i.e. the total value of your annual taxable income plus any pension savings you make exceeds £150,000) or you have chosen to take benefits from an authorised pension scheme as a taxed lump sum or you take income drawdown or a short-term annuity, or an annuity capable of reducing, your Annual Allowance may be reduced.
More information on tax relief and the Annual Allowance is available in the Member Booklet and on this website.
What the Company contributes
By electing to make contributions you will benefit from additional Matching Employer Credits payable by the Company in addition to the Employer Credit already payable. The Company will match any personal contributions up to a maximum of 5% of Pensionable Pay.
| Personal contributions | Employer Credits | Matching Employer Credits | Total being paid to your Personal Account |
|---|---|---|---|
| 7% or more | 8% | 5% | 20% or more |
| 6% | 8% | 5% | 19% |
| 5% | 8% | 5% | 18% |
| 4% | 8% | 4% | 16% |
| 3% | 8% | 3% | 14% |
| 2% | 8% | 2% | 12% |
| 1% | 8% | 1% | 10% |
| 0% | 8% | 0% | 8% |
Cost and contributions
The total amount to be invested each month into your Personal Account are all estimates based upon the amount of Pensionable Pay that you have entered, the amount you are electing to pay and the tax rates in the prevailing tax year. The rates being used are correct for the 2019/20 tax year and are subject to continual review.
Scheme and HMRC limits
The Contribution Calculator takes into consideration any limits imposed by the Scheme and by HM Revenue & Customs. Tax relief on your personal contributions depends upon your individual circumstances, prevailing tax rates and the Annual Allowance all of which may change in the future. The Contribution Calculator assumes that you are entitled to standard personal tax allowances in its calculations.
Your Payslip
The amounts given by the Contribution Calculator are for illustrative purposes only and should not be taken as fact. The actual amount that you will pay will be shown on your payslip.
Exclusions
The Contribution Calculator does not allow for Maternity leave, returning to work following Maternity leave or any other special situations or circumstances where the Matching Employer Credit may exceed 5% of Pensionable Pay.
Getting advice
How much you decide to contribute is ultimately your decision. Whilst we have provided the Contribution Calculator to support you in your decision making, the Trustee is unable to offer any advice. If you are unsure on what to do then it is strongly recommended that you seek independent financial advice. Information on independent financial advisers in your area can be found at register.fca.org.uk.
Terms and conditions
This Contribution Calculator is provided by the Trustee for exclusive use by active or potential members of the DC Section of the Scheme; it should not be assigned or distributed to anyone else. Access to the Contribution Calculator shall be limited to employees of the Company who have a legitimate need for access. Neither the Trustee nor Concert Consulting (UK) Ltd provides any warranty of any kind with respect to the calculations produced.
Small print
Company means The Prudential Assurance Company Limited or any associated company/employer that offers you membership of the Scheme through your contract of employment. All benefits are payable in accordance with the Trust Deed and Rules, the legal document governing the Scheme. In the event of any discrepancy between any information provided to you and the Trust Deed and Rules, the Trust Deed and Rules will prevail.