HOW IT WORKS

DC Choice lets you build up a ‘pot’ of savings while you’re working that you can use to provide an income when you retire. You pay in regular contributions and so does the Company – together we help you save for your future. 

These contributions are paid into a personal account in your name. 

Your personal account is invested automatically in the default investment option, or you can choose your own investments, so it can grow. When you come to retire, you can use the money saved in your personal account to provide a retirement income in the way that suits you best. 

The amount you’ll have in your personal account at your retirement age depends on: 

• how much has been paid in contributions 
• how your investments have performed 
• your choices at retirement. 

With a DC plan there’s no guarantee as to the level of income your account will be able to provide and investment returns can go down as well as up. However, you do have the flexibility to choose how you use your retirement savings. You could buy a guaranteed income (known as an annuity), take a flexible income as and when you need it (known as drawdown), take it as a cash lump sum or a mix of all three. 

Remember, while you have more choice in a DC plan, you take on the risks of managing your money yourself, unless – or until – you buy a guaranteed income through an annuity.