Have your employees discovered the power of their pension?

Your pension scheme is there to help your employees save for their future and plan for the retirement they want.

With the current cost of living crisis, your employees may be trying to balance their day to day finances with their longer term retirement needs.

So the end of tax year is a good time to encourage them to review their workplace pension savings, to understand if they're on track or if they could benefit from making any changes or single contributions, such as bonus sacrifice.

Discovering the power of their pension

Our Discover the power of your pension hub gives employees access to a collection of videos, articles and guides that explain where pension savings go, tax relief, pension contribution limits and how to make a single contribution.

This information is organised into three distinct stages of a pension savings journeys, so your employees can choose to explore the option that best suits their own personal circumstances. These are:

Encouraging employee engagement

To support your employees on their pension journey we've created new email templates you can share with them with information on:

We’ve added these to your employee engagement toolkit which has lots of support items you can use to prompt employees to revisit their pension savings, and take action if required.

You can also encourage them to visit Discover the power of your pension.

Employees can see what their Royal London pension savings are worth now, contributions made over the last year, and any tax relief, by logging in to our mobile app.

Single contribution options

If any of your employees want to make a single contribution to their pension plan, they can do this by bank transfer or bonus sacrifice.

Bank transfer

If they want to transfer money from a bank account they simply need to fill out a single contribution form.

Bonus sacrifice

If your workplace pension is set up under a salary exchange arrangement, your employees can choose to exchange all or part of any contractual bonus they receive, in return for a pension contribution. This is called bonus sacrifice.

If your employees receive a guaranteed bonus, you’ll need to give them an agreement letter to sign detailing their bonus amount before and after bonus sacrifice. You can then include your employees’ bonuses in your regular payroll run.

If their bonus is performance related, and isn't guaranteed, you'll still need an informal agreement that any bonus will be paid as an employer pension contribution.

Find out more

For more information on workplace pensions support available at tax year end speak to your usual Royal London contact or financial adviser.