About your statement
What your annual benefit statement tells you
Your benefit statement is a summary of your pension savings at the end of each Scheme year. Our Scheme year runs from 1 April to 31 March. Your current benefit statement shows the amount you have saved up to 31 March 2020, the end of the latest Scheme year.
Your statement tells you the value of your savings now and what they may be worth in the future. This information can be useful in helping you make decisions about saving and planning for your retirement, so keep it handy.
Your log-in details will be in the email we sent you about your statement.
When you get your benefit statement
We must give you your annual benefit statement within 12 months of the end of the last Scheme year. For example, we’ll make your 2019-2020 Scheme year statement available after 31 March 2020, but before 31 March 2021.
If you joined our Scheme after 31 March 2020 (the end of the Scheme year), you won’t receive a statement for 2019-2020. You’ll get a benefit statement for the Scheme year ending 31 March 2021.
Who receives an annual benefit statement?
If you’re member of the NOW: Pensions Trust (‘the Scheme’) and paid contributions into your pension savings during the 2020 Scheme year, we’ll send you a benefit statement.
If you have money saved with us previously but have now stopped contributing, you’ll also receive a statement.
If you no longer have pension any savings with us, we won’t send you a statement.
Have you received more than one benefit statement?
If you have more than one lot of pension savings with us, you’ll get more than one statement. Reasons for this could include:
- you left your workplace pension in the Scheme then re-joined later
- how often you get paid has changed – for example, from weekly to monthly
- you’ve worked for more than one company using NOW: Pensions as a pension provider.
If you’ve received several statements for the same Scheme year, it’s likely you have more than one contract with us. Each contract has a unique ID. You can see all your contracts by logging in to your member account at nowgatewayx.com.
Each statement will have your unique NOW: Pensions contract ID for those pension savings. To work out the total value of your pension savings with us, add the savings from each statement together.
How we work out the value of your pension savings
We use a method called a Statutory Money Purchase Illustration (SMPI) to work out your future pension estimates. All pension providers must use this method.
Your SMPI assumes you’ll use your pension savings in the Scheme to buy a pension – an income for life, also known as an annuity – when you retire. It shows an estimate of the amount of pension you might get in today’s money. (You don’t have to buy a pension – other options are available – but this keeps it simple and makes it possible to compare your estimates from year to year.)
How we work out the estimate on your benefit statement
We started with the estimated value of your pension savings on 31 March 2020. But a lot of things can affect the value of your pension between that time and when you decide to retire, so we had to make assumptions to work out your pension estimate.
Assumptions about costs, charges, contributions and inflation
- The values and investment unit prices in your benefit statement for 31 March 2020 are correct.
- Costs and charges are the same as they were on 31 March 2020.
- Any contributions we received after 31 March 2020 aren’t included.
- You and your employer continue to pay contributions to the Scheme at the same rates you were paying at the date of the benefit statement.
- Your pensionable earnings (the earnings that count towards your pension contributions) increase at 2.5% a year to the date you retire (we assume this is your State Pension age unless you’ve told us something different).
- Inflation will be 2.5% a year to the date you retire.
Assumptions about investment
- We invest your pension savings in the Diversified Growth Fund until 10 years before you’re due to retire. Then we gradually switch them to the Retirement Countdown Fund.
- The investment funds will grow at the following rates:
- Diversified Growth Fund: 5% a year
- Retirement Countdown Fund (Series I and II): 2% a year.
Assumptions about how you use your pension savings
- You’ll use your pension savings in the Scheme to buy a pension (an annuity).
- Your pension won’t increase.
- Your pension won’t include a spouse’s or civil partner’s pension.
You can find out more about the assumptions we used to work out your pension estimate in our Costs and charges booklet.
The pension figures on your benefit statement are estimates in today’s money. What actually happens will be different from what we’ve assumed, so these figures don’t come with a guarantee. For example, you may not buy a pension (an annuity). If you do buy a pension, its value depends on things like investment performance and the cost of buying an income, which may be different from the assumptions we’ve made.
We can’t promise that your benefit statement shows the actual amount of money you, or anyone else who benefits from your pension, will get. You could get more or less than this amount. The figures shown are a guide to help you plan for the future.
How do you want us to send your next benefit statement?
The quickest way for us to keep you up to date with your pension is by email. If you’d like us to send your next benefit statement by email, add or update your email address using your online member account at nowgatewayx.com. Remember, you’ll need the email address you registered with, or your unique NOW: Pensions contract ID, to log in. You should also tell your employer what your preferred email address is.
If you have any questions or need information, you can email us at email@example.com or write to us at NOW: Pensions, St. James’s Tower, 7 Charlotte Street, Manchester M1 4DZ. To help us help you faster please quote your full name, address and National Insurance number in your email or letter.