Alliance Healthcare & Boots Pensions

Saving for your retirement

There are many reasons why it is a good idea to start saving for your retirement. Here are a few FAQs to help you decide when and how much to save.

Why should I start saving for retirement?

Many people think they will rely on the State Pension when they retire. But the State Pension only provides a very basic level of financial support. And not everyone will qualify for the full amount of State Pension, so it might not even cover your basic living costs like housing, heating and food. You can find out more about the State Pension here.

When should I start saving for retirement?

The short answer is as soon as possible as this will enable your savings to grow over time. A retirement savings plan such as the AHBRSP will help to provide you with an income once you reach retirement. Of course, everyone has different financial commitments, so before you join you might find it useful to speak to an independent financial adviser (IFA) to work out what the best options are for you.

How does it work?

The AHBRSP is a ‘defined contribution’ pension plan. This means that you and your employer pay contributions into an individual Retirement Savings account. Your account is invested, and any money that is made from the investments is added to your account. When you retire, you use money in your account to give you a retirement income (or pension).

The Government helps by giving you tax relief on your contributions.

How will I be paid out?

When you retire, you can choose to take up to 25% of your account as a tax-free lump sum (under current legislation).

Many people use the money that has built up in their account to buy an annuity. An annuity is an insurance product that allows you to convert your retirement savings into a regular income for the rest of your life.

From April 2015, the Government changed the rules about how you can use your retirement savings. The changes give you a lot more options. For example, you can take all of the money in your account as cash, or take an income from your account while the rest remains invested, or you can buy an annuity. You can find out more on this website: www.pensionwise.gov.uk

What other benefits are there?

If you join the AHBRSP, you get the added benefit of life assurance cover of four times your pay, rising to five times your pay after five years’ membership. There are no additional life cover benefits available through the AE Scheme, although, should the worst happen, the value of your Retirement Savings account will be paid out to your loved ones.

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Documents

Scheme guide

Scheme guide

Alliance Healthcare & Boots Retirement Savings Plan - April 2018

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Application form

Application form

Alliance Healthcare & Boots Retirement Savings Plan

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