Personal Pensions

Key features:

  • Tax efficient savings for the future
  • Benefits can be taken from age 55
  • Benefits can be taken flexibly
  • Access to a range of funds
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Please remember the value of investments and any income can go down as well as up and you may get back less than you invest.

Why choose us?

A pension means different things to different people, but it is generally regarded as a plan in which you save for your retirement, which when you come to retire will have accumulated a value and will then provide you with a benefit. These days there is increased flexibility with pensions, for example, you can work and receive pension benefits if you are over 55 if you choose to, and you can choose how and when you access  the money you have saved in personal pensions (depending on the rules of the pension schemes you are a member of).

Our Personal Pension is flexible and simple. You simply pay into the plan, and your money is then invested to provide you with a pension 'pot' (fund value).  You may then use this pot of money to take benefits.

So, whether it is as your sole vehicle for preparing for retirement or you simply want to supplement your workplace or state pension, the Wesleyan Personal Pension can provide a solution. The sooner you start planning for the future, the more opportunity you have to build up the funds you'll need to enjoy the life you want. We've developed our Personal Pension as ways to build up your pension fund, by taking advantage of the many tax privileges available to plans of this kind.

Initial and ongoing charges

There is an initial charge of up to 3% of each payment you make. This is for the cost of the advice provided by Wesleyan Financial Services.

Once you have set up your Wesleyan Personal Pension plan, you will be able to add lump sums or increase your regular contributions directly to us without taking advice. If you decide to do this there will be no initial charge to pay. However, you will not receive any investment advice or personal recommendation from us, so you will need to consider carefully if it will meet your needs and objectives.

There is also an Annual Management Charge (AMC), which is a percentage of how much your plan is worth each year and covers the cost of managing your investment and running your plan.  The amount of AMC depends on the fund or funds that you invest in.

For more information about the Wesleyan Personal Pension please read the Key Features Document.

Remember that the value of your investments can go down as well as up and you may not receive back what you put in. Tax treatment depends on individual circumstances and can change in the future.

How it works

Personal pensions are one of the most tax-efficient ways to save for your retirement, and for most people they remain one of their main sources of income in retirement, for the following reasons:

  • Basic rate tax-payers qualify for 20% tax relief on payments made to a pension, so for every £100 contributed, it costs you only £80.
  • Higher rate tax-payers qualify for up to 40% tax relief on their pension contributions, so it could cost you as little as £60 for every £100 saved into your pension*. In Scotland the higher rate is now 41%, so it could cost you as little as £59 for every £100 saved in your pension*.
  • If you are a 45% tax-payer (in 2020/2021), it could cost you as little as £55 for your £100 contribution*. In Scotland, the Top rate is 46%, so it could cost you as little as £54 for every £100 saved into your pension*.
  • Any growth in your pension fund is free from UK Income Tax and Capital Gains Tax (although the 10% dividend tax credit on UK shares cannot be reclaimed).
  • When you retire, you can take up to 25% of your pension fund as a tax-free cash lump sum (the remainder of your fund could be used to provide a taxable income).

* You must have paid sufficient tax at the 40% or 45% rate if you are a higher or additional   tax-payer, or 41% or 46% if a Scottish tax-payer, to be able to reclaim tax relief at that rate on your contribution. You will automatically receive basic rate tax relief on your pension contributions at 20%. Any additional tax relief you are entitled to above this amount will need to be claimed via your self-assessment tax return.

The Government set a limit on the amount that can be paid into your plan annually by you or anyone else. They also limit how much you can save into pensions over your lifetime. These limits should be considered when deciding how much to contribute.

You can contribute to a Wesleyan Personal Pension Plan if you are under 75 and a UK resident for tax purposes. You, your employer (if you have one), and anyone else can pay into the plan on your behalf.  You can also transfer money from other pension plans into your Wesleyan Personal Pension (you can do this at any age). The minimum contribution is £150 each month or £1,800 each year.

The amount of money you get back will depend on how your investments perform, the plans charges and how you decide to take your benefits. 

The value of your investment can go down as well as up and you may not get back what you put in. There are no guarantees.

Tax treatment depends on personal circumstances and can change in the future.

More details about the features of the plan and it's charges are shown in the Key Features document. Further information can also be found in our pension guide.

Important Information
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Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

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