About workplace pensions
A workplace pension helps you to save for retirement through contributions taken direct from your salary
What is a workplace pension?
Generally speaking, all pension schemes are long-term savings plans. They help you to save money that can be used after you've stopped working full or part-time.
Most people qualify for some support from the government as they grow older, but a State Pension probably won’t cover all of your needs. This is why automatic enrolment – or auto enrolment – exists, encouraging you to save regularly by being a member of a workplace pension.
What is a workplace pension?
Generally speaking, all pension schemes are long-term savings plans. They help you to save money that can be used after you've stopped working full or part-time.
Most people qualify for some support from the government as they grow older, but a State Pension probably won’t cover all of your needs. This is why automatic enrolment – or auto enrolment – exists, encouraging you to save regularly by being a member of a workplace pension.
Who enrols me in a workplace pension?
Every employer in the UK has to offer a workplace pension scheme by law, and the business has to automatically enrol anyone who’s eligible. Each month, your employer will deduct a set amount from your salary before paying you. Your employer will also put money into the scheme, helping you to save for retirement. At the moment, as long as you qualify, the pension provider will add money from the government in the form of tax relief.
Alternatively, when you join a new employer, you could be invited to become a member of your employer's workplace pension scheme as part of your onboarding or joining process. You may already be a member of another pension scheme – either a private pension or a different employer’s workplace pension – but every time you change jobs, you’ll be invited to join the new employer’s scheme.
Being enrolled in a workplace pension is helpful. It means you’re saving for retirement automatically. Your employer has enrolled you in the Smart Pension Master Trust. It's a defined contribution scheme that pays money into a master trust.
Who enrols me in a workplace pension?
Every employer in the UK has to offer a workplace pension scheme by law, and the business has to automatically enrol anyone who’s eligible. Each month, your employer will deduct a set amount from your salary before paying you. Your employer will also put money into the scheme, helping you to save for retirement. At the moment, as long as you qualify, the pension provider will add money from the government in the form of tax relief.
Alternatively, when you join a new employer, you could be invited to become a member of your employer's workplace pension scheme as part of your onboarding or joining process. You may already be a member of another pension scheme – either a private pension or a different employer’s workplace pension – but every time you change jobs, you’ll be invited to join the new employer’s scheme.
Being enrolled in a workplace pension is helpful. It means you’re saving for retirement automatically. Your employer has enrolled you in the Smart Pension Master Trust. It's a defined contribution scheme that pays money into a master trust.
What are the other types of pension scheme?
The Smart Pension Master Trust is a defined contribution scheme. You'll also hear it called a workplace pension.
The most common pension schemes in the UK are occupational pensions and personal pensions. Within those two categories, there are then several other arrangements. What's important, is that every pension helps you to plan for retirement by saving money from your salary.
In a pension scheme like ours, you and your employer both pay money in on a regular basis. You may also get tax relief on the contributions.
Defined contribution schemes
Defined contribution schemes are also known as money purchase schemes. In a defined contribution scheme, employers and employees put a known amount of money into the scheme. It's a fixed (defined) percentage of your salary. That money is then invested in stocks, shares, and other investments. When employees reach their retirement dates, they can then access those savings in different ways.
Most master trusts are a type of defined contribution pension, run by a board of trustees. The trustees take responsibility for the scheme, the investments, and the way members are kept updated about their savings. They hold the money in trust for the scheme’s members, making sure it’s accessible when employees reach their retirement dates.
Group personal pensions
Group personal pensions are similar to personal pensions. Employers decide which company provides the pension, but employees have individual contracts with the pension provider.
Defined benefit pension schemes
A defined benefit pension scheme – which may include final salary and career average pension schemes (CARE schemes) – operates in a completely different way to defined contribution schemes and group personal pensions. The pension will be calculated using a person's salary and how long they've worked for their employer. The employer is responsible for funding the scheme so that it can pay everyone's pensions.
The advantage of a defined benefit scheme for members is that they are protected from investment risk, as the employer will need to make good any shortfall in investment performance.
The Pension Protection Fund is available to members of defined benefit pension schemes to provide compensation to members if their employer fails to succeed commercially and the scheme is underfunded.
Final salary pension schemes
A final salary pension scheme is a type of defined benefit pension. Members of these schemes get a defined amount of money that’s based on their final salary. If they retire earlier than planned, their salary may not be as high as it could have been and they may not get as much.
What are the other types of pension scheme?
The Smart Pension Master Trust is a defined contribution scheme. You'll also hear it called a workplace pension.
The most common pension schemes in the UK are occupational pensions and personal pensions. Within those two categories, there are then several other arrangements. What's important, is that every pension helps you to plan for retirement by saving money from your salary.
In a pension scheme like ours, you and your employer both pay money in on a regular basis. You may also get tax relief on the contributions.
Defined contribution schemes
Defined contribution schemes are also known as money purchase schemes. In a defined contribution scheme, employers and employees put a known amount of money into the scheme. It's a fixed (defined) percentage of your salary. That money is then invested in stocks, shares, and other investments. When employees reach their retirement dates, they can then access those savings in different ways.
Most master trusts are a type of defined contribution pension, run by a board of trustees. The trustees take responsibility for the scheme, the investments, and the way members are kept updated about their savings. They hold the money in trust for the scheme’s members, making sure it’s accessible when employees reach their retirement dates.
Group personal pensions
Group personal pensions are similar to personal pensions. Employers decide which company provides the pension, but employees have individual contracts with the pension provider.
Defined benefit pension schemes
A defined benefit pension scheme – which may include final salary and career average pension schemes (CARE schemes) – operates in a completely different way to defined contribution schemes and group personal pensions. The pension will be calculated using a person's salary and how long they've worked for their employer. The employer is responsible for funding the scheme so that it can pay everyone's pensions.
The advantage of a defined benefit scheme for members is that they are protected from investment risk, as the employer will need to make good any shortfall in investment performance.
The Pension Protection Fund is available to members of defined benefit pension schemes to provide compensation to members if their employer fails to succeed commercially and the scheme is underfunded.
Final salary pension schemes
A final salary pension scheme is a type of defined benefit pension. Members of these schemes get a defined amount of money that’s based on their final salary. If they retire earlier than planned, their salary may not be as high as it could have been and they may not get as much.
Instant changes to your
pension savings
You won’t need to check in on your pension savings every day. They're designed to be a long-term investment. But if you do need or want to get an update, then the secure Smart Pension makes it easy to get that information straight away. There’s no need to make a phone call or to wait for a letter.
Our app will give you real time information about your pension savings. It puts your future into the palm of your hand.
Instant changes to your
pension savings
You won’t need to check in on your pension savings every day. They're designed to be a long-term investment. But if you do need or want to get an update, then the secure Smart Pension makes it easy to get that information straight away. There’s no need to make a phone call or to wait for a letter.
Our app will give you real time information about your pension savings. It puts your future into the palm of your hand.
Instant changes to your
pension savings
You won’t need to check in on your pension savings every day. They're designed to be a long-term investment. But if you do need or want to get an update, then the secure Smart Pension makes it easy to get that information straight away. There’s no need to make a phone call or to wait for a letter.
Our app will give you real time information about your pension savings. It puts your future into the palm of your hand.
Smart Pension's fund choices
Smart Active Impact Bond Fund
Aims to invest in bonds which have an environmental impact and generate financial return above the global green bond market, taking into account Environmental, Social and Governance issues when selecting investments.
As this fund was recently launched, a factsheet is not yet available.
Smart Active Impact Equity Fund
The aim of this fund is to invest in equities which provide growth over the long term (being a period of five years or more) and invest in companies that contribute to the achievement of the United Nations’ Sustainable Development Goals.
As this fund was recently launched, a factsheet is not yet available.
Smart All Stocks Index – Linked Gilts Index Fund
Aims to track the return of the FTSE Actuaries British Government Index Linked All Stocks Index, which features UK government bonds with returns linked to the Retail Price Index (RPI).
Smart Annuity Fund
Aims to improve potential outcomes for investors likely to purchase fixed annuities by providing a diversified exposure to assets that reflect the broad characteristics of investments underlying a typical traditional level annuity product, incorporating Environmental, Social and Governance (“ESG”) considerations as part of the investment strategy.
The fund cannot provide full protection against changes in annuity rates for individual members as these also depend upon a number of other factors (e.g. changes to mortality assumptions).
Smart Cash Fund
Aims to maintain capital and provide a return in-line with money market rates by investing in a range of money market securities denominated in sterling.
Smart Ethical and Climate Fund
Aims to track a filtered index, which excludes companies that operate in industries that breach certain ethical criteria.
Smart Global Bond Index Fund
Aims to invest in different types of bonds in the UK and overseas, taking into account Environmental, Social and Governance factors.
Smart Growth Fund – Higher Risk
This fund carries a higher risk of fluctuation to your savings than other growth funds available but has the potential for high growth, though this is not guaranteed.
Smart Growth Fund – Lower Risk
This fund carries the lowest risk of fluctuation to your savings than other growth funds available but also reduced likelihood of a high return. It may be suitable if you are concerned about volatility.
Smart Income Fund
Aims to provide long-term investment growth up to retirement, and to support flexible income during retirement, taking into account Environmental, Social and Governance factors.
Smart North America Equity Index Fund
Aims to provide broad exposure to companies in the North American equity market, taking into account Environmental, Social and Governance factors.
Smart Sharia Fund
Aims to create long term appreciation of capital through investment in a diversified portfolio of securities which meets Islamic investment principles.
Smart Sustainable Growth Core
Aims to take advantage of Environmental, Social and Governance factors by investing more in companies which score well in these areas.
Smart Sustainable Growth Fund
Aims to take advantage of Environmental, Social and Governance factors by investing more in companies which score well in these areas to mitigate Environmental, Social and Governance risks and benefit people and the planet by having a moderate allocation to investments contributing to solutions for environmental and social issues.
Smart Sustainable Growth Plus
Aims to take advantage of Environmental, Social and Governance factors by investing more in companies which score well in these areas to mitigate Environmental, Social and Governance risks and benefit people and the planet by having a high allocation to investments contributing to solutions for environmental and social issues.
Smart UK Equity Index Fund
Aims to provide broad exposure to the UK stock market, taking into account Environmental, Social and Governance factors.
Smart World (ex UK) Developed Equity Index Fund
Aims to provide broad exposure to large and mid-cap companies in the developed world, excluding the UK, taking into account Environmental, Social and Governance factors.
Smart World Emerging Markets Equity Index Fund
Aims to provide access to key emerging economies taking into account Environmental, Social and Governance factors.
