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Questions people ask us

If you've got any questions about how your workplace personal pension works, speak to your employer. Or click on the links to see the answers to some frequently asked questions.

 

But if there's still something you'd like to ask us, feel free to get in touch on 0845 745 6127.

 How much money should I pay into my pension each month?

The amount you should pay into your pension each month depends on lots of things, such as how old you are, what you're earning, and how much money you'd like to have in retirement.

However much you put in your pension each month, it's a good idea to start as soon as possible. If you leave it later, you'll have to put in a lot more each month to reach the same financial goal - that's because you'll make fewer contributions overall, and your money will have less time to grow.

 I've heard a lot about Defined Benefit schemes and Defined Contribution schemes. What kind is my HSBC workplace personal pension?

A defined benefit pension gives you a certain amount of money every year after you stop working, based on the salary you were being paid. These schemes are also called final salary schemes.

An HSBC scheme works differently. It's a defined contribution scheme. In a defined contribution scheme, you make regular contributions to build up a pension pot. This pension pot belongs to you. You get tax relief, and if yours is a workplace personal pension then your employer may make contributions too. Your pension pot is invested in funds so that it has a chance to grow over the years. The value of your pension pot when you finally come to use it will depend on how much money has gone into it (once charges have been taken in to account) and how it's grown. When you retire, you use the money in your pension pot to buy a regular income.

 What happens to my pension if I get a new job?

If you leave your employer, they'll stop making contributions to your pension pot. There are different things you could then do with it.

You could stop contributing too, and leave your pot where it is for us to look after. You could carry on making your own contributions so there's the potential for your pension to grow even more - you can do that even if you join a new pension scheme. Either way, we'll still be taking care of it for you. If you have a new employer and you join their scheme, you might be able to transfer your pension pot to the new scheme - it depends on whether they'll allow you to do this.

 Can I have more than one pension scheme?

Yes. There is no limit to the number of pension schemes you can be a member of, but limits do apply to the overall level of payments that can be made into them by you or on your behalf.

Please remember that the value of pensions can fall as well rise and you may not get back the amount you invested. This can also happen as a result of changes in exchange rates where overseas shares in currencies other than sterling are held. Contributions to pensions are normally tied up until you take your pension benefits.

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