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Pension contributions

Understanding my pension contributions

How pension contributions work

Depending on your workplace pension scheme, contributions may be made by: Net Pay or Salary Sacrifice

Your contribution
This is the amount that you contribute to your pension through your workplace scheme. Regular contributions help build your retirement savings and can make a significant difference to your pension over the long term.
Your employer contribution
Depending on your employment contract, your employer may also contribute to your pension. Employer contributions provide an additional boost to your retirement savings and can support you in your savings goals.
Impact of investment growth and charges
Pension contributions are invested in funds, often with the aim of growing your savings over the long term. The value of your pension will be affected by investment performance and the charges associated with managing your pension and investments. Investments can rise and fall in value, and growth is not guaranteed.
Total value of your pension at retirement
The value of your pension at retirement will depend on a number of factors, including the contributions paid in, employer contributions, investment growth, charges and the length of time your money remains invested. Regular reviews can help ensure you remain on track towards your retirement goals.

Learn about Salary Sacrifice

Under a salary sacrifice arrangement, you agree to sacrifice part of your salary for an increased employer pension contribution. Password: Sm@rtbrochu13

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Learn about Net Pay

Contributions are deducted from your salary after income tax is applied, tax relief may be available via your annual self assessment tax return depending on your personal position and relevant earnings. Password: N@tP@y1

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Frequently asked questions

Can I change my contributions?

If your workplace pension operates under a net pay arrangement, you can usually request changes to your contribution level at any time, subject to your employer’s payroll processes.

If your workplace pension operates under salary sacrifice, contribution changes can typically only be made once each year at the scheme renewal date, unless you experience a qualifying lifestyle event. Please speak to your HR team or your Independent Financial Adviser (IFA) for further information.

Before making any changes, consider the impact they may have on your retirement savings and long-term financial goals.

To discuss changing your contributions, please contact your HR team or speak to a member of the MAC Financial team.

Why consider increasing contributions?

Even a small increase in contributions today could make a significant difference to your retirement savings in the future.

You may wish to review your contributions when:

  • You receive a salary increase
  • You change jobs or receive a promotion
  • Your financial commitments reduce
  • You’re planning for retirement

The earlier you increase contributions, the more time your investments have to potentially grow.

Where can I see my contributions?

You can usually view your current pension contributions through:

  • Your payslip
  • Your employer’s payroll system
  • Your Aviva pension account

Your pension account will also show the contributions that have been paid into your pension over time.

What are the benefits of monthly contributions?

Pension contributions going in on a monthly basis benefit from pound cost averaging. This means that you will buy units in your investment at different prices on a monthly basis, which helps smooth out potential volatility in the market.

Still unsure?

If you have questions about how pension contributions work within your scheme, MAC Financial is here to help.

If you would like to discuss your retirement planning objectives or the impact contributions may have on your future pension benefits, please speak to one of our Independent Financial Adviser.