Select Pension Plan
Making it simple to plan for your retirement.
Our Select Pension Plan is a personal pension that provides you with the choice and flexibility to decide where your money is invested, giving you control over your financial future.
You should be aware that the value of your investment may go down and you may get back less than you invested.
Product overview
The Select Pension Plan is designed for people who wish to build up a pension pot in a tax-efficient manner, and provides choice over how to withdraw money in retirement.
It aims to give you a flexible way to invest in a range of investment funds to accumulate a pension pot for your retirement, offering a choice of how and when you take money from your pension pot from the age of 55 (57 from 2028), as well as provide any remaining funds to your beneficiaries when you die.
What is a personal pension?
With a personal pension plan for every £80 you invest the government will add £20. If you pay 40% or 45% income tax, you can reclaim additional tax relief directly from HMRC.
Your money is then invested to provide you with a private pension 'pot' you can access any time after age 55 (57 from 2028) - whether you’re still working or not.
Personal pensions are an attractive option due to their flexibility and simplicity, with your fund largely able to grow free from tax.
Can I set up pension for my child?
Our Select Personal Pension Plan also lets you start a pension for your children to help establish their financial future. It's a simple, tax efficient way to give a child under the age of 18 a valuable head start.
For every £80 contributed a further £20 will be be added in tax relief. Invest a maximum contribution of up to £2,880 per child each tax year and HMRC will top this up with a further £720 to £3,600. This means that when your children are in their 20s and 30s they will already have a fund they can build on.
The benefits of our Select Personal Pension Plan:
- Choice: invest in funds from NFU Mutual and selected providers.
- Flexibility: the ability to make one-off switches from one fund to another or change where your future payments are invested.
- Control: you can start, stop and restart regular payments or change the amount at any time.
- Start small: invest from as little as £50 per month or lump sums of £1,000.
- Track performance: with My Investments you can track the performance of your investments online.
- Legacy: any remaining benefits left to your beneficiaries when you die are normally free of inheritance tax, with choices on how they can be taken.
You should be aware that the value of pensions may go down and you may get back less than you invested.
The tax treatment of pensions depends on individual circumstances and may change in the future.
When you contact us we'll explain the advice services we offer and the charges. NFU Mutual Financial Advisers advise on NFU Mutual products and selected products from specialist providers.
Financial advice is provided by NFU Mutual Select Investments Limited.
Control and choice
Our Select Investment products provide you with the ability to track the performance of your funds and choose the funds your money is invested into.
Find out more about the funds that you can invest your money into via the Fund Centre and how you can track the performance of your investments through My Investments.
Frequently asked questions
You can speak to us about opening a pension by calling us on 0800 622323.
If you would prefer you can open a Select Pension Plan online through our direct service.
Single contributions can be made by cheque or electronic transfer and regular contributions – by direct debit. If you are transferring the value of another pension scheme into your plan then it will usually be by cash transfer.
You can also top up your plan through out direct service.
You can invest in funds from NFU Mutual including Mutually Managed funds which invest in a range of assets, usually including shares (equities), bonds (fixed interest) and cash. These funds include With-Profits which are subject to a ‘smoothing’ process. Find out more about how our With-Profits funds work.
Or you can invest in our Market funds which invest in only one type of asset. These funds could be ideal if you like a hands-on approach to selecting your funds.
There are also Select funds available from external providers. These funds are carefully chosen to complement our fund range and to offer you extra choice.
If you are unsure about which funds to invest in and decide not to take financial advice, then you may want to consider the Select Pension default fund, find out more about the default fund.
Fund charges are associated with each of the funds we offer, these charges are deducted by the fund manager to cover the costs of setting up/managing their funds. The charges for the funds that your Select Pension Plan payment will be invested can be found in the My Investments Guide to Charges [PDF: 187KB] document.
You can pay in up to £3,600 no matter what your income. If you earn more than £3,600 you can pay in as much as you earn each year, subject to the annual allowance.
HM Revenue and Customs sets a yearly limit, called the annual allowance that you can pay into your pension and get tax relief. This includes contributions made by you, your employer or anyone else. The annual allowance for the current tax year is £60,000.
The tapered annual allowance can reduce this figure. This only impacts those with an 'adjusted income', broadly total income plus employer pension contributions, of more than £260,000.
If you would like to make contributions of more than £60,000 you may be able to contribute more by using unused allowance from the previous three years. An NFU Mutual Financial Adviser can explain how this works in more detail.
Currently, you can take money out of your pension at any time from age 55, or earlier if you are in poor health. From 2028 the minimum age at which you can take your pension benefits will increase to 57.