Your contributions
Learn how the contributions from you and Wincanton can grow over time and help you build a stronger retirement income.
Saving into your pension is one of the most valuable things you can do to prepare for life after work. Even small contributions now can make a big difference in the future, and with added payments from Wincanton, your money goes even further.
How contributions work
If you’re auto-enrolled in the scheme, 5% of your qualifying earnings is paid into your pension and Wincanton adds another 3% on top of that. You can contribute more if you wish, it’s up to you how much you pay in. In some cases, Wincanton will match your contributions, meaning if you choose to pay in more, Wincanton may increase what it pays in too – up to a certain level. We call these Core contributions.
This money is invested to help it grow over time. The total amount saved can go up and down depending on how investments perform, but the aim is long-term growth.
You can change your Core contributions once a year on 1 November and you must confirm your decision by 1 October. You will need to complete a Contribution Amendment Form. If you wish to reduce the level of your normal contributions, the Company’s contributions may also reduce. Your contributions cannot reduce below the auto-enrollment minimum requirements.
In the DC section of the Scheme, Wincanton uses a system called ‘SMART Pensions’, which is a form of salary sacrifice.
This means instead of paying your contributions from your salary, your salary is reduced, and Wincanton pays that amount into your pension. Paying through SMART Pensions can be more tax-efficient, as you pay less National Insurance, which increases your take-home pay.
For most people, SMART Pensions is a tax efficient way to save, but it’s important to consider your own situation. Salary sacrifice may not be right for everyone. For example, if it would reduce your pay below the National Minimum Wage, or if it could affect things like maternity pay or other statutory payments. It’s a good idea to consider your personal circumstances and get advice if you’re unsure whether salary sacrifice is right for you.
You’ll be automatically included in SMART Pensions when you join the scheme, and it’ll continue unless you choose to opt out.
You can opt out of SMART Pensions at any time - you can raise a ticket via MyServiceHub, call People Services on 01249 710615 or email benefits.peopleservices@wincanton.co.uk
Can I save more?
If you’d like to save more, you can choose to pay extra into your pension by setting up Additional Voluntary Contributions (AVCs). You can choose to:
Pay a fixed amount each pay
period
Contribute an additional percentage of your salary
Make a one-off lump sum payment at any time
Wincanton doesn’t contribute to your AVCs, these are extra savings you choose to make yourself. AVCs are paid in a tax-efficient way, meaning you get tax relief on what you pay in. You can start, stop, or change your AVCs at any time. You don’t need to wait for a specific window.
You can use our retirement calculator to help you decide what level of AVCs might suit your goals.
If you’re interested in paying AVCs you’ll need to complete an AVC form.
How your contributions can add up over time
Even small contributions can grow into a valuable pot of money for your future. The table below shows a few examples of what your pension pot could be worth after 30 years of saving on different salary levels. To explore how this fits into your wider retirement plans, visit Plan to retire.
Please note these are illustrations only and your actual pension value will be higher or lower depending on actual contributions, investment growth and your own circumstances. These examples should not be considered financial advice or investment targets.
| Annual salary |
Your monthly contribution
(5%) |
Wincanton’s contribution
(3%) |
Total saved each month |
Estimated pot
after 30 years* |
| £20,000 |
£57.33 |
£34.40 |
£91.73 |
£64,000 |
| £30,000 |
£99.00 |
£59.40 |
£158.40 |
£110,000 |
| £40,000 |
£140.67 |
£84.40 |
£225.07 |
£156,000 |
* These estimates are pre-tax amounts. They assume 4% investment growth per year, no salary increases, and no additional contributions, which broadly means they ignore future increases in the cost of living. The contribution amounts are based on qualifying earnings, that is, the part of annual salary over £6,240 (the lower limit for pension contributions in the 2024/25 tax year), which is also assumed not to increase for the purpose of this illustration.
So, how much might you actually need? According to the Retirement Living Standards published by the Pensions and Lifetime Savings Association, to fund a retirement lifestyle (on top of your State Pension), a single person would need:
- around £13,400 a year for a minimum standard of living,
- around £31,700 a year for a moderate lifestyle,
- around £43,900 a year for a comfortable lifestyle.
Choosing and monitoring your contributions can seem a little complex. But by spending a bit of time now to get familiar with them you’ll soon be confidently on course for your retirement.
Investment growth and risks
Your pension savings are invested to help them grow. This means the value of your pot can go up or down over time, which is normal. Pensions are designed to be long-term investments, so you shouldn’t focus on short-term changes. The Scheme’s investments are managed and reviewed by the Trustees, who make decisions to keep the Scheme healthy and working in members’ best interests.
Below is an example of how your pension could fluctuate overtime while still achieving long-term growth.
Example of pension growth over 30 years
Learn more about your investment options here.
Once you are a member of the Scheme, you may be able to transfer in benefits from a previous pension arrangement if the Trustees agree you can do so. However, this is a complex area and you should seek financial advice beforehand.
If you want to find out more about your transfer options, you should contact Capita by going to ‘Contact Us’ when logged into your secure online portal. They will then, on your behalf, request information about your previous pension arrangement.
When all the required information is received from your previous pension arrangement, you will be sent full details on the transfer value(s) and then given the opportunity to consider whether you wish to proceed with the transfer(s) or not. If you do opt to go ahead with the transfer(s), these additional funds will be added to your personal account.