Question 1

How do I set up a monthly contribution?

Accepted Answer

Please follow the video below to set up a recurring monthly contribution.

${youtube}How to set up monthly contributions

Question 2

What benefits can I take from my pension?

Accepted Answer

You can take both a tax-free lump sum and an income from your pension.

A tax-free lump-sum

You can usually take up to 25% of the value of your pension as a tax-free lump sum, called a pension commencement lump sum.

Income from your pension

You can use the full value of your pension, or the remainder if you take a tax-free lump sum, to either:

    *  provide you with an income – called a drawdown pension
    *   purchase an annuity from an insurance company to provide you with a guaranteed income for the rest of your life

With a drawdown pension your money stays invested, and you make withdrawals from it when you need to. There is no minimum, or maximum amount you have to withdraw. You pay income tax on the amount you withdraw, based on the amount of your income together with your other taxable income.

Instead of receiving a drawdown, you can use the remainder of your pension to purchase an annuity from an insurance company. While annuities vary, they generally provide you with a guaranteed income for the rest of your life. The amount of income payable to you will depend on the annuity rate offered by your chosen provider.

Collegia does not provide financial/tax advice so if you are unsure please speak with an Independent Financial Advisor.

Question 3

What happens if I die after age 75?

Accepted Answer

If you die after age 75 the value of your pension can still be passed to your beneficiaries but will be subject to income tax.

Question 4

How do I make a one-off contribution?

Accepted Answer

To make a one-off contribution, please follow the steps on the video below.

${youtube}How do I make an One-off contribution ?

Question 5

How much do I pay?

Accepted Answer

The Collegia Personal Pension Scheme charges you 1.7% out of every new contribution to your Collegia Personal Pension.

On an ongoing basis, we charge you 0.1% of your account annually for managing it (Annual Management Charge) and you also are charged 0.29% - or 0.35% for the HSBC Islamic Global Equity Fund - of the value of your assets annually to pay for the costs of the funds. There are no additional fees. And never there will be.

For additional information about our fees, please check the Collegia Key Illustration document here.

Question 6

What is the tax treatment of my pension?

Accepted Answer

Personal pensions have tax advantages to encourage individuals to save for their retirement:

When you contribute

Contributions you make to your pension are normally eligible for basic rate income tax relief. This means that for every £80 you contribute to your pension the government, through its HMRC department, will pay in an additional £20. Higher or additional rate taxpayers can claim back further income tax relief using a Self Assessment tax return form. No tax relief is available on pension contributions paid by those at or over the age of 75.

While your pension is invested

The investments in your pension will grow free of income tax and can be sold without incurring capital gains tax (CGT).

When you retire

When you retire, you can generally take up to 25% of your pension value as a tax-free lump sum and use the rest to provide an income. The income paid from your pension is subject to income tax. The amount of tax you pay on your income during retirement will depend on the amount of your income together with your other taxable income. Neither Collegia Partners Limited nor Collegia Partners Trustees Limited provide tax advice. It is important to understand the tax implications of pensions and everyone’s circumstances are unique so if you are ever unsure, we strongly suggest you seek advice from an independent financial adviser.

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