You can boost your pension by saving some of your pay into the Retirement Savings Plan. This is called making extra voluntary contributions (EVCs).
You can only make extra voluntary contributions (EVCs) if you are using your Benefits Envelope to save for pension.
If you are not using your Benefits Envelope to save for pension you can start saving into the Retirement Savings Plan at any time.
You can save:
- A one-off amount whenever you want
- A regular amount every month
- Both
When you make any kind of extra voluntary contributions, you pay less Income Tax on your pay.
And, if you choose to save every month for a year, you’ll pay less Income Tax and National Insurance on your pay.
Saving a one-off amount
To save a one-off amount into the Retirement Savings Plan, download and fill in an extra voluntary contributions form.
You will not pay Income Tax on the one-off amount that you save into the Retirement Savings Plan.
You can only make extra voluntary contributions (EVCs) if you are using your Benefits Envelope to save for pension.
If you are not using your Benefits Envelope to save for pension can start saving into the Retirement Savings Plan.
On the form, tick ‘one-off contribution’ and fill in the amount.
Saving a regular amount
You can commit to saving every month for a year, or keep the flexibility to save less or stop when you want.
Committing to saving
When you commit to saving every month from your pay it costs you less than you think. This is because you’ll save through salary sacrifice. When you do this you’ll pay less Income Tax and National Insurance on your pay.
So if you’re a basic-rate taxpayer in England, every £100 will only cost you £70 from your take-home pay. If you pay tax at the higher or additional rate, your EVCs will cost you less than this. You can start saving every month or save more whenever you like. Download and fill in an extra voluntary contributions form. On the form, tick ‘fixed term’.
If you want to stop or save less, you have to wait until the next Annual Renewal.
Keeping more flexibility
If you want to be able to vary the amount you save whenever you want, you should not save through salary sacrifice. You’ll pay less Income Tax on your pay, but not less National Insurance.
So if you’re a basic rate taxpayer in England and you save £100 from your pay, it will cost you £80 of your taxable pay. If you pay tax at the higher or additional rate, your EVCs will cost you less than this.
To start saving a regular amount from your pay, stop saving or change the amount you currently pay, download and fill in an extra voluntary contributions form. On the form, tick ‘variable’.