Frequently asked questions
When do I get it?
This depends on the rules of the occupational scheme you belong
to. You will usually be able to start claiming your pension and benefits
at either 60 or 65 – ask your employer for details if you are not
sure what the retirement age is for your scheme. However, you don’t
have to retire from all work to get an occupational pension – and
in some cases you can even continue working for your employer.
How much do I pay?
The rules vary depending on which pension scheme you belong to, but usually
you will pay a monthly contribution that is a percentage of your salary.
You may also be able to make extra contributions if you want to increase
the size of your pension fund when you retire.
How much do I get?
The amount of pension you will get depends mainly on the type of scheme
you belong to and how long you have been a member.
1. In a salary-related pension scheme, the amount of pension you get is mostly based on the number of years you belong to the scheme and your earnings.
2. In a money purchase pension scheme, the amount of pension you get depends on how much money has been paid into your fund, and how well the scheme’s investments have performed by the time you retire.
Each year your employer may send you a forecast of how much pension you will get when you retire. This will help you decide if you need to save more. If you do not receive a statement every year, you can ask for one. Find out more about these two different types of pension schemes
What if I work part-time?
If you work part time and your employer has an occupational pension scheme,
you will usually be allowed to join it.
Do I still get the additional State Pension?
Yes. But you will lose some or all of your additional State Pension if
your occupational pension scheme is contracted out.
Find out more about contracted-out
pensions
What if my employer doesn’t offer membership of an occupational
pension scheme?
Recent changes in the law mean that most companies with more than five
employees now have to offer you either membership of an occupational pension
scheme or access to a stakeholder pension scheme. Or, you can choose to
take out a personal pension.
Find out more about personal pensions
Find out more about stakeholder pensions
What happens if my employer goes out of business or the occupational
pension scheme winds up (closes down) for some other reason?
If your employer goes out of business or your pension scheme winds up
there is a chance that you may get less than you expect when you retire.
The Government has set up two organisations – the Pension Protection Fund and the Pension Regulator – to improve protection for members of salary-related pension schemes. If you think your pension scheme may wind up it’s important that you make sure you understand your options and find out the best course of action to take, depending on your personal circumstances.
Find out more about
the Pension Protection Fund
Find out more about
the Pension Regulator