Add more to your pension savings
You can increase your regular contributions, or ask your employer to add a one-off lump sum from your salary
You can increase or decrease contributions at any time
You and your employer will be putting money regularly into your Smart Pension account, based on a percentage of your wages or salary.
If you'd like to increase the amount of money you're contributing, then there are two ways to do this:
- you can increase your contributions by signing in to your account
- you can top-up your savings with a one-off payment from your salary
Please speak to your employer's payroll department if you want to arrange a one-off payment from your salary. This is called an additional voluntary contribution (AVC). You should see the extra money in your account no more than six weeks after we get the next batch of payroll information from your employer.
You can increase or decrease contributions at any time
You and your employer will be putting money regularly into your Smart Pension account, based on a percentage of your wages or salary.
If you'd like to increase the amount of money you're contributing, then there are two ways to do this:
- you can increase your contributions by signing in to your account
- you can top-up your savings with a one-off payment from your salary
Please speak to your employer's payroll department if you want to arrange a one-off payment from your salary. This is called an additional voluntary contribution (AVC). You should see the extra money in your account no more than six weeks after we get the next batch of payroll information from your employer.
Is there a maximum amount you can put in each tax year?
Yes, it's known as the annual allowance. In the 2024/25 tax year, the annual allowance is £60,000 across all of your pension schemes. This includes your contributions, your employer’s contributions, and any tax relief you may get. This reduces to £10,000 if you have started to take your pension.
If you go over that amount then you'll incur a tax charge. It's known as the annual allowance charge. Your financial adviser can tell you more. If you don't have a financial adviser at the moment, you can find independent financial advisers near you on unbiased.co.uk Alternatively, the Money Helper website is a good place to start getting to know your options.
Following the passing of the Finance Bill, 2023, if you have an annual income in excess of £200,000 or you’re already using some of your pension savings, then your annual allowance may be different.
Is there a maximum amount you can put in each tax year?
Yes, it's known as the annual allowance. In the 2024/25 tax year, the annual allowance is £60,000 across all of your pension schemes. This includes your contributions, your employer’s contributions, and any tax relief you may get. This reduces to £10,000 if you have started to take your pension.
If you go over that amount then you'll incur a tax charge. It's known as the annual allowance charge. Your financial adviser can tell you more. If you don't have a financial adviser at the moment, you can find independent financial advisers near you on unbiased.co.uk Alternatively, the Money Helper website is a good place to start getting to know your options.
Following the passing of the Finance Bill, 2023, if you have an annual income in excess of £200,000 or you’re already using some of your pension savings, then your annual allowance may be different.
What are the lump sum allowance and the lump sum and death benefit allowance?
With the abolition of the lifetime allowance, two new allowances have been introduced. These new allowances have been introduced to limit the total amount of tax-free sums that members can receive from their pension savings.
Lump sum allowance (LSA) - this is £268,275 and it covers the pension commencement lump sum (PCLS), and the tax-free portion of uncrystallised funds pension lump sum (UFPLS).
Lump sum and death benefit allowance (LSDBA) - this is £1,073,100 and covers all the lump sums under the LSA and certain death benefits and other lump sums that are payable tax-free (such as serious ill-health lump sums).
The new allowances and tax changes effective from 6 April 2024 mean you should carefully consider how you take your pension savings. Before you decide what you want to do, make sure you seek help and guidance.
Things to consider
Have you already taken any tax-free lump sums from registered pension schemes before 6 April 2024 and how will this impact any lump sums you are due to take after that date?
Impartial guidance and support
Pension Wise (now part of the MoneyHelper service)
Has lots of useful information about how you can turn your pension savings into retirement income. You can also book a Pension Wise appointment to speak to someone about your retirement options in detail.
You can also call the MoneyHelper service on 0800 011 3797 for more general information.
Financial advice
You can also seek financial advice if you would like to. Please remember that financial advisers usually charge you for their services. We recommend that you use the MoneyHelper directory to help you find a local financial adviser that’s right for you.
What are the lump sum allowance and the lump sum and death benefit allowance?
With the abolition of the lifetime allowance, two new allowances have been introduced. These new allowances have been introduced to limit the total amount of tax-free sums that members can receive from their pension savings.
Lump sum allowance (LSA) - this is £268,275 and it covers the pension commencement lump sum (PCLS), and the tax-free portion of uncrystallised funds pension lump sum (UFPLS).
Lump sum and death benefit allowance (LSDBA) - this is £1,073,100 and covers all the lump sums under the LSA and certain death benefits and other lump sums that are payable tax-free (such as serious ill-health lump sums).
The new allowances and tax changes effective from 6 April 2024 mean you should carefully consider how you take your pension savings. Before you decide what you want to do, make sure you seek help and guidance.
Things to consider
Have you already taken any tax-free lump sums from registered pension schemes before 6 April 2024 and how will this impact any lump sums you are due to take after that date?
Impartial guidance and support
Pension Wise (now part of the MoneyHelper service)
Has lots of useful information about how you can turn your pension savings into retirement income. You can also book a Pension Wise appointment to speak to someone about your retirement options in detail.
You can also call the MoneyHelper service on 0800 011 3797 for more general information.
Financial advice
You can also seek financial advice if you would like to. Please remember that financial advisers usually charge you for their services. We recommend that you use the MoneyHelper directory to help you find a local financial adviser that’s right for you.
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.
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.
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.
