Personal pensions

Build an income for your later years

Why take out a personal pension from Wesleyan?

The Wesleyan Personal Pension Plan is a tax-efficient way to save for your retirement. Decide how your money is invested by choosing from our range of funds and make contributions that suit you.

  • Start your pension pot from as little as £150 a month
  • Make regular contributions or one-off lump sums
  • Anyone can pay in to grow your pot
  • Choose from a range of 12 funds, including our flagship With Profits Fund
  • Easily transfer in money from other pensions
  • Automatically reduce your risk as you approach retirement with lifestyling
  • Take a break or stop your contributions at any time
  • Take an income from as early as age 55

Annual management charges apply. If you take advice from a Wesleyan Financial Services Consultant, an initial advice charge will also apply.

The value of your pension pot can go up and down and its value, when you take benefits, might be less than you paid in.

The perks of being prepared

We all know retirement can be long and expensive, which is why starting a personal pension now can be a great way to give you financial security for your future. The sooner you start saving, the longer you have to build your pot ready for retirement. It’s also more affordable, as you’ll have to contribute less to reach your financials goals than you would if you were to wait until you’re older.

You can start your pension pot from as little as £150 per month. With a range of investment funds to choose from and several ways to take your pension benefits, the Wesleyan Personal Pension can help give you peace of mind for when life slows down.

Paying in

With our Personal Pension, you simply pay into the plan with one-off or regular contributions, which we’ll then invest in your choice of funds.

With every contribution you make, you’ll benefit from at least 20% tax relief (subject to annual allowance). We’ll claim this for you and add it to your plan. If you’re a higher rate taxpayer, you may even benefit from more tax relief via your tax return.

Tax treatment can depend on individual circumstances and may change in the future.

You choose, we manage

By choosing from one or more of our twelve funds, you’re in control of the level of risk you take with your money.

Our award-winning team of Fund Managers look after your investments as you get on with life.

Consolidate your pensions

If you’ve started other defined contribution pension pots throughout your career, you can transfer them to your Wesleyan Personal Pension Plan to have all your pension in one pot. It helps you to easily manage your benefits.

Take it your way

When it’s time to collect your benefits, you have the option to take your benefits while you continue to work, wait until your retirement, or leave your pension pot untouched to give your benefits to a chosen loved one.

Reduce your risk

We know that your financial goals and attitude to risk may change throughout your lifetime, especially when you get closer to retirement. That’s why at Wesleyan, you can benefit from ‘lifestyling’.

If you’re looking to purchase an annuity from your pension pot, lifestyling is an option that lets you enjoy the prospect of good investment returns over the long term, while reducing risk in the five-year period before you’re due to start taking benefits. It works by gradually switching the investments you’ve built up over the years (and any future contributions) to our lowest-risk fund as you get closer to your chosen benefit date.

And if you change your mind or prefer to take a more adventurous approach to investing, you can opt in or out at any time.

Years to selected benefit date
% of money invested in our moderate - high or higher risk / reward funds
% of money invested in our risk averse fund
5
80%
20%
4
60%
40%
3
40%
60%
2
20%
80%
1
0%
100%

Just bear in mind that lifestyling isn’t a suitable option for everyone. For example, it may not be right for you if you want to take a flexi-access drawdown. 

Once you’ve taken your tax-free cash, you may wish to grow your remaining investment in a moderate to high-risk fund. Lifestyling is designed to lower your risk, so wouldn’t help you meet your goals.

You could also miss out on future growth if financial markets produce strong returns.

Frequently asked questions

  • Can I transfer pension pots from other pension schemes into my plan?
    Yes, if your pension provider allows it, and as long as the value of each pot you transfer in is at least £10,000.
  • Can I switch my money between funds?

    Yes, you can move your money into one or more different funds of your choosing at any time. We can advise you on our range of funds and make any fund switches on your behalf.

    You can make up to 12 fund switches in any 12-month period.

  • How much can I contribute?

    There’s no limit. However, to receive tax relief, you can pay in up to £3,600 or 100% of your relevant UK earnings (up to £40K) each year. Your relevant UK earnings is the income you get in a tax year from your employer (or through your trade if your self-employed), including bonuses, commission and benefits.

    You can find out more about this and the Money Purchase Annual Allowance (MPAA) in our Key Features document.

  • How much can I build up in my pension plan without having to pay a tax charge?

    The total amount you can build up in all your pension plans, including ones you hold outside of Wesleyan, is the lifetime allowance of £1,073,100.
    If you exceed the limit, you may have to pay a lifetime allowance charge on the amount above the allowance. This charge is:

    • 55% if you take your pension savings as a lump sum, or
    • 25% if you take your pension savings as a taxable income (you’ll then have to pay tax on the income as you would normally)
  • How can I take my pension?

    There are multiple ways to take your pension.

    You can use some or all of your pension pot to buy an annuity, with up to 25% of your pot available as tax-free cash. With an annuity, you will get a regular guaranteed income, normally until you die, though you can choose to have an annuity for just a couple of years. We’ve partnered with Retirement Line, to help find the best annuity for you. You can speak to your dedicated Wesleyan Financial Services Consultant to learn more.

    If you have more than £30,000 in your pot, you can collect your pension through a flexi-access drawdown with Wesleyan. With this option, your pension stays invested while you draw a variable income from it. You continue to benefit from any investment growth on your remaining pot. Again, you can take up to 25% of your pension pot tax-free. You can also carry on making contributions, transfer in another pot, or even delay taking an income until you need it most.

    For a flexible way to enjoy your personal pension, you can dip in and out of your pot as you like by taking cash lump sums. You’ll get 25% of each cash withdrawal below the lifetime allowance tax-free, with the freedom to adjust the amount and timing of your cash lump sums to suit your changing income needs throughout retirement.

Important information

Charges

Initial charge

If you take financial advice, a 3% initial advice fee applies to each payment, additional subscriptions or transfers.

Annual Management Charges

There's an Annual Management Charge of 1%.

Please note, if you're opted in to Wesleyan Financial Services' Ongoing Advice Service (OAS), the Annual Management Charge is 1.5%.

Market Value Reduction

If you switch out of the Pension With Profits Fund, take an income or tax-free cash, or die, we may apply a Market Value Reduction (MVR). This is an adjustment which reduces how much you get back at certain times (for example, when share prices are generally low).

You can find out more about this by speaking to your Wesleyan Financial Services Consultant.

Key documents

Before your appointment with a Financial Consultant, you may wish to read: