How to give yourself more money
There are three ways you can give yourself more money:
1. Save more
You can save up to 6% of your pensionable pay into your pension pot, and Royal Mail will add up to 10%. So if you’re saving less than 6%, think about whether you’d like to increase your contributions. That way, you’ll be getting more from Royal Mail.
You can also save more than 6%, if you want to. You wouldn’t get any more money from Royal Mail, but you’d get more tax relief from the government on top of what you save. To make an extra contribution, fill in the Choices form.
You can change the amount you save into your pension pot as often as you want to.
2. Switch funds
When you join the Plan, your money is invested using the Default Lifecycle option. This option uses an investment strategy which moves your money to lower risk funds as you get closer to taking your money. This approach protects your money in the run-up to retirement, but because it’s a lower-risk strategy, it might not give you the highest returns.
You can opt to choose your own investments if you want to. What you choose depends on how much risk you’d like to take, and the return you need from your investments.
3. Start taking your money later
The Plan’s Selected Retirement Age is 65. You don’t have to take your money at 65, though. The longer you keep your money invested, the more you keep saving into your pension pot, and the more chance your money has to grow.
If you’re investing in a Lifecycle option, your money is invested in a way that aims to get your money ready for your Selected Retirement Age. If you increase your retirement age, your money would stay invested in higher risk funds for longer. You can change your retirement age to a maximum of 75.
If you do want to increase your retirement age, let us know. That way we can make sure we don’t move your money into lower risk funds too soon.