Top 10 reasons to save

Being part of the TPT Scheme, you're saving each month

It’s just that you won’t see that money until you come to take it later on in life, rather than having it right now.

It can help you provide for a more comfortable future

While the State pension may provide a vital part of your overall retirement income, you could well need more to meet your retirement goals. In 2020/21 the new flat rate state pension provides an income of up to £175.20 a week – £9,110 a year. Compare this with what you currently earn and think about whether or not this would be enough for you in retirement.

It’s a good way to make the most of tax advantages

Saving into a pension is very tax efficient as long as you stay within the limits set by the Government. You get tax relief on the money you pay into the Scheme (which means, in effect, it costs you less).

You can get a quarter of your savings pot tax free

When you come to take your savings (which could be any time from the age of 55 onwards) you can take 25% as a cash lump sum, which is paid tax free.

You have a choice about how to take your savings pot, any time after you reach age 55, even if you haven’t stopped working

You can choose to use your savings pot to buy a guaranteed income (with or without taking a cash lump sum) or you can continue to invest your money and withdraw all or some of it as and when you need it.

The savings pot you have in the Scheme is yours, even if you leave your employer

As long as you have been a member of the Scheme for more than 30 days, the value of your savings pot can stay in the Scheme or you could transfer the value to another pension. Whichever you choose you won’t lose out.

You don’t pay Capital Gains tax

If you were to buy company shares on the stock market, when your money grows in value you have to check if you need to pay any Capital Gains tax. The money you pay into your TPT savings pot isn’t affected by Capital Gains tax, regardless of how much it grows in value from buying shares in companies in the UK or around the world.

Your family get some money if you die

If you die before you retire, your family or your beneficiaries would receive the value of your savings pot as a lump sum. You can complete a nomination (beneficiary) form to choose who you would prefer this money to be paid to.

Your saving pot is locked away, until you reach age 55, so you can’t spend it

There’s always a temptation with savings to use them before you intend to. This is fine for short-term savings intended for a holiday, a new car or even the deposit on a house. But when it comes to making sure that you have enough money to live on in retirement, it’s essential that you keep on saving for as long as possible so that your money has time to build up and provide you with an income.

It can be a good way to invest

Your investments are key to making your savings grow. Your TPT savings pot can be a good way to invest, with low fund management/investment charges. Investing in stocks and shares yourself can be more expensive, and the funds offered through the Scheme invest in a large number of different shares and/or other types of investments and are managed for you by experienced managers.

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