Protecting Your Pension Savings Through Every Life Event
Life has many twists and turns, from career changes to marriage and starting a family. When we make big changes in our lives, it’s easy to forget about the impact they may have on our long-term savings. It’s worth understanding how some important life events could affect your Plan savings so that you factor these into your planning. Here are three big life events to consider as a member of the Staff Plan.
Taking a career break
If you decide to take a period of unpaid leave, your own and LCP’s contributions to the Plan will be automatically suspended during this period. They will automatically start again when you return to work.
If you want to make up for a period of missed contributions, one of the easiest options is to increase your contributions for a short period after you return to work (and receive an increased matching contribution from LCP up to 10% of your Pensionable Salary). Your contributions are made using our Salary Sacrifice arrangement called SMART pensions. You can contribute up to 20% of your Basic Pay to your Plan account through SMART Pensions.
You can find out more on the SMART Pensions FAQ page on LCPConnect.
Getting married
When you get married or if you are in a civil partnership, it’s useful to discuss your financial goals as a couple, including your pension savings. This could help you create a savings strategy that reflects both your retirement goals. By coordinating pension contributions, you may also optimise the tax advantages, especially if one partner is in a higher tax bracket.
Taking parental leave
LCP will continue to make contributions to the Plan during paid periods of ordinary, additional and statutory maternity, paternity, shared parental and adoption leave. LCP’s contributions will be calculated based on your pre-SMART Pensions pay that you would have been receiving had you not been on maternity, paternity, shared parental or adoption leave.
Your contribution will be calculated on the pay you actually receive (if any). However, no SMART Pensions adjustment will be made if you are receiving statutory maternity, paternity, shared parental or adoption pay only.
Your earnings in this period will not be allowed to fall below the statutory level.
Both your contributions and LCP’s contributions will cease during any periods of unpaid family or parental leave.
Again, you may want to make up for a period of missed contributions, by increasing your contributions for a short period after you return to work.
If you need more support, there are lots of resources available on Connect including parental support coaching. There are also lots of additional tools and resources, like the baby cost calculator and baby money timeline on Moneyhelper at moneyhelper.org.uk/en/family-and-care/becoming-a-parent.
