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Private pension FAQs

How much can I contribute to my private pension every year?

Please be aware that the amount you can contribute to your Private Pension depends on various factors. If your employer makes pension contributions through salary sacrifice, these contributions will be included in your overall annual allowance. The current annual allowance has been increased to £60,000 (2023/2024).

However, it’s important to note that your allowance may be adjusted based on your expected annual income. To determine the appropriate level of contribution via SmartWork, it is advisable to consult with your pension advisor or financial planner. They will be able to provide guidance tailored to your specific circumstances. Additionally, you may have the opportunity to utilize any unused allowances from previous tax years through a process called ‘carry forward’. To explore this option, it is recommended that you inquire about it with your advisor.

Please keep in mind that SmartWork is unable to monitor your allowance on your behalf. Therefore, it is crucial to stay informed and seek professional advice to make informed decisions regarding your Private Pension contributions.

How do I let my pension company know that SmartWork will make payments into my pension account?

To notify your pensions company about SmartWork’s payments into your pension account, you must provide the following information:

– Inform them that SmartWork.com Ltd is your current employer and that they will be making contribution payments into your existing pension account.

– Specify that all contributions made by SmartWork will be gross employer contributions.

– Mention that payments will be issued through electronic bank transfer, either BACS or Faster Payment, as SmartWork does not offer payments via Direct Debit.

– Provide them with our company details:

Company Name: SmartWork.com Ltd
Registered Office: Whitefriars, Lewins Mead, Bristol, BS1 2NT
Company Number: 4207299
Contact Email Address: info@smartwork.com

How do I stop my private pension contributions?

If you wish to stop making private pension contributions, you can easily do so by following these steps.

Firstly, please send an email to your business manager at SmartWork or sales@smartwork.com at least five working days before your usual payday, stating your request to stop the deductions. This will allow us to update your account accordingly.

Additionally, it is important to inform your pension provider that employer payments from SmartWork into your pension account will either temporarily pause or cease altogether, depending on the duration of the deduction pause.

Please note that this process only applies to optional SIPP payments and not Workplace Pension Contributions. If you are looking to stop contributions to the workplace scheme, please refer to our other articles for further guidance.

What happens to my SIPP/pension contributions after I leave SmartWork?

After receiving all the final payments, your provider will be notified about the last payment. From that point, it will be your responsibility to continue the process. As per our standard payment schedule, we will make the final payment to your pension provider.

It is important for you to inform your pension provider about your departure from SmartWork and the discontinuation of our payments into your pension account. This will allow your pension provider to remove SmartWork as your employer from your pension account.

Do I have to report my private pension/SIPP contributions to HMRC?

No notification to HMRC is required for private pension arrangements as it falls under the purview of your employer’s contract with SmartWork. HMRC does not need to be informed about this change.

How do private pension contributions might affect your state pension?

The state pension is determined by your National Insurance (NI) contributions. If you participate in a salary sacrifice scheme, your NI payments may be reduced, which could potentially affect your state pension. However, this will only be a concern if your decreased salary falls below £190 per week or the threshold for making NI contributions.

Can SmartWork help me set up a private pension account?

The selection of a provider ultimately depends on your individual situation and the specific needs you have for a SIPP. It is important to note that we are not governed by the FCA and, therefore, cannot provide any financial or retirement planning advice.

Additionally, we are not associated with any pension provider except for our Automatic Enrollment Workplace Pension provider, The People’s Pension. Consequently, we are unable to endorse or recommend any specific provider or facilitate any introductions or referrals to pension providers.