If you haven’t already, we strongly encourage you to register on the Nationwide Pension Fund Member Portal today! Registering to the Portal gives you 24/7 access to your pension details online. To register on the Portal, simply visit the Nationwide Pension Fund website and click or tap on the ‘Click here to log in to your Member Portal’ option on the left of the screen, then select the ‘First time user’ option. You’ll need a ‘Unique ID to access the system, if you have misplaced your Unique ID, you’ll need to contact Buck, the Fund administrator.
In early 2024, we’ll be launching new functionality on the Portal called ‘Retire online’, allowing you to manage your retirement process online. We’ll provide you with further details once Retire online is launched.
If you’re a Deferred member, your latest Annual Benefit Statement is now ready to view; this includes a current estimation of the pension payable to you at your Normal Retirement Date.
All you need to do is:
Log on to the Member Portal
Viewing your statement is important as it helps you to understand the potential value of your pension in retirement. Your statement is based on the current data we hold for you and contains information about the death benefits under the Fund. You should check that the personal details we hold for you are correct.
Did you know that if you’ve saved Additional Voluntary Contributions (AVCs) into Fidelity, Prudential or Zurich, you can access your AVC details online?
Please use the following details:
• Fidelity PlanViewer – you can talk to Fidelity about registering on 0800 368 6868
• Prudential Portal – you can talk to Prudential about registering on 0345 601 0150
• Zurich Portal – you can talk to Zurich about registering on 0370 241 6950
If you hold AVCs, they may play an important role in your retirement planning, so it is worth checking on them regularly. You should also ensure that the details linked to your AVC account are accurate and up to date in order to prevent any delays when receiving your benefits.
In the recent edition of Pensionwide, we covered the Spring Budget and how it could affect your pension. The changes to the Lifetime and Annual Allowances may affect your retirement planning. We explain the Lifetime and Annual allowances in further detail below:
What is the Lifetime Allowance (LTA)?
The Lifetime Allowance sets the total value of all the pension savings (excluding State pensions) you can build up before having to pay tax. It currently stands at £1,073,100 and had been expected to stay at that level until 2026, but from 6 April 2023 LTA tax charges were removed, and from April 2024 the LTA is scheduled to be a thing of the past. The amount of tax-free cash lump sum available at retirement is being frozen at the current limit of up to 25% of the 2022/2023 Lifetime Allowance (£268,275).
What is the Annual Allowance?
The Annual Allowance limits the amount that can be paid into your pensions in a tax year without having to pay a tax charge. It has increased from £40,000 to £60,000, with changes to the tapered Annual Allowance also from 6 April 2023.
There’s a third limit, the Money Purchase Annual Allowance, which limits how much you can pay into your defined contribution pension arrangements in a situation where you’ve already started taking some benefits from them. It’s increased from £4,000 to £10,000.
The NMPA is the minimum age at which most people can access their pensions without incurring a tax charge. Different rules apply to those accessing their pension early due to ill-health.
The NMPA is currently age 55 but will be increasing to age 57 from 6th April 2028.
If your Preferred Retirement Date within the Fund falls between your 55th and 57th birthdays, you may be affected by the NMPA increase. You should factor this into your plans for retirement and review your financial plans to make sure you aren’t caught out.
As mentioned in the summer edition of Pensionwide, the Trustee, and its advisers are currently assessing any impact the high court ruling has on the Guaranteed Minimum Pension (GMP) for benefits accrued between 17 May 1990 and 6 April 1997.
The Trustee will communicate directly with any affected members and will confirm any action taken in 2024.
