This page is for those that wish to opt-out of the Homeprotect Royal London Group Personal Pension (GPP) Scheme.
First, please consider how – for basic rate taxpayers in the example below – your tax relief and resulting total contributions invested are very much in your interests and works as follows:
Example of £50 from your monthly pay:
| Items: | Amount £ |
| Payslip deduction (assumed is 2%) | 50.00 |
| Income tax saved 20% | 10.00 |
| National insurance saved 13.80% | 6.90 |
| Net cost to you | 34.90 |
| Employers national insurance added | 3.45 |
| Homeprotect’s contribution (assumes is 3%) | 75.00 |
| Total amount invested for you | 129.35 |
A contribution rate of 2%, after allowing for the lower taxes you pay, actually costs you just 1.36% of your pay.
The above calculation is proportionately accurate, where the example of an Employee contribution of £50 is taking place.
It also shows that the equivalent growth on your own after tax cost is a huge 277.79%! This is because you have a cost to you of just £34.90 for a total amount invested into your pension fund of £129.35 in the above table.
Thus, in principal, it is absolutely the case that investing into your pension makes sense for you and your Family’s financial future: there is nowhere better to invest for your retirement. The Government knows this and that’s why Auto-enrolment was introduced.
Your Employer is not permitted by law to discuss opting-out of your company pension scheme and so you would need to contact jeanette@pattersonmills.com by email in the first instance.
Jeanette will inform you how to electronically opt-out of the Scheme, which can only be done by you.
The deadline to contact Jeanette, to avoid any contributions being taken, is 12th of any given payroll month and you are able to opt-out at any time and re-join in the future.
Should you wish to discuss how the investment in your pension scheme works, please email chris@pattersonmills.com.
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