The value of my account

The value of your individual account from the Sky Pension Plan (your payments and those of Sky and your investment returns), will roughly depend on the following factors:

  • The payments you have made to the Plan
  • The payments Sky have paid in
  • How well your investments have performed
  • How you planned to take your investments in retirement – the lifestyle strategy you chose.

The maximum total retirement savings that you can build up tax efficiently across all the registered pension schemes you contribute to during your lifetime is called the Lifetime Allowance. The standard Lifetime Allowance is £1,073,100 (2022/2023), although you may have a higher personal Lifetime Allowance if you have any form of Lifetime Allowance protection.

The way in which your retirement savings are valued relative to the Lifetime Allowance depends on the type of benefit you have. In a defined contribution pension scheme, the investment value of your retirement savings is assessed against the Lifetime Allowance at retirement. However, if you have benefits in a final salary/defined benefit pension scheme, it is the capital value of these benefits at retirement (calculated according to HMRC’s rules) that is used for the purpose of the Lifetime Allowance assessment; if you have any such benefits, the final salary/defined benefit pension scheme administrator will advise you of the value of these benefits for the Lifetime Allowance test.

If your total overall retirement savings exceed your Lifetime Allowance when you come to retire, additional tax charges will be due on the excess when you take your benefits. Each time you take benefits from a registered pension scheme, you will use up part of your Lifetime Allowance (the relevant scheme administrator will confirm the % of the Lifetime Allowance you have used up). If and when you use up all your available Lifetime Allowance, any remaining benefits you have will be subject to an additional tax charge.

You can find out more about the Lifetime Allowance at https://www.gov.uk/tax-on-your-private-pension/lifetime-allowance.

Contact the Plan administrator, Buck, to find out your current fund value, switch investments or change your details.

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