PwC GPP

Your journey to a brighter future

Saving for
yourretirement
Joining the PwC GPP gives you the opportunity to plan
for your retirement and to start saving for your future as
soon as possible.
This brochure is designed to help you understand the
options available to you, and explain what you need
todonext, and is correct as at April 2015.
PwC is pleased to offer you the chance to join the
PwCGPP with Friends Life.
Friends Life, who PwC have chosen to provide this
scheme for you, cannot guarantee what youll get back in
the future. A pension plan is a longterm investment plan
set up to enable you to save money whilst youre working
and then provide you with an income once youve retired.
Your pension plan is not a savings plan the value
of investments can go down as well as up, and is not
guaranteed. You could get back less than has been paid
in. You cant normally access your money until you are 55.
Please read the supporting documents listed in the box
on the next page as they contain important information
to enable you to decide whether to join the scheme. This
guide does not constitute financial advice. If you are not
sure whether this scheme is right for you, please contact a
financial adviser. You may have to pay for financial advice.
In order to understand how the contribution
structure for the PwC GPP works, please refer to
the additional information provided by PwC in the
Choices Manual on the PwC UK Portal.

Contents
Why should I join?

page 4

How does your plan work?

page 9

How much should I put by for retirement?

page 11

How can I join?

page 12

Further information and help 

page 13

This brochure should be read together with:

The Choosing your investment funds brochure, available online.
The Fund descriptions, their charges and risk warnings document,
availableonline.

The Key Features document, available online.

The Key Features illustration, available online.
The Terms and conditions, available online.
To access the above documentation please visit the scheme microsite
(www.friendslife.co.uk/microsite/pwc). The above documentation is available
through the website under the documents link on the homepage.
If you do not have any of this documentation, please call 0845 602 9221.

A pension is a long term investment. You cannot normally access your pension savings until your
55th birthday.

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Why should I join?

It pays to join

National Insurance saving

Being able to join PwCs GPP is part of your current

employment benefits package. The PwC GPP is operated
onasalary sacrifice basis as described below.

The amount of National Insurance both you and PwC pay is

calculated on the salary you receive (i.e. the salary youll have
after salary sacrifice). You will pay less National Insurance as
aresultof salary sacrifice. This means a National Insurance
saving for you and for PwC.

It may be in your best interests to join the scheme but everyones

circumstances are different. It is important that you read the
KeyFeatures document for more information.

What is salary sacrifice?

Salary sacrifice is an easy way to arrange contributions to your
pension and can also help make saving for retirement a little
more affordable. It is an arrangement between you and PwC
whereby you agree to a reduction in salary and PwC then pays
an amount equal to this reduction directly into your pension
along with any additional employer contribution they are making.
Through a salary sacrifice arrangement, the amount you
choose to sacrifice for pension contribution never forms part
of your salary. In other words youre giving up the right to
receive this amount as salary in exchange for a further
pensioncontribution from PwC.

As a further benefit to you, PwC currently passes on part of

their National Insurance saving on your sacrificed salary as a
reduction in your Choices price of approximately 6%. If you
areunsure of the saving passed onto you, please contact
PwCHC Direct.

Tax efficient contributions

A pension plan provides you with a tax efficient way of saving
for your future. Under your salary sacrifice arrangement all
contributions are paid into your plan by your employer. As a
result they are paid gross with no tax deducted.
The Key Features document provides further tax information.

Your employer contributes

As well as the contributions made through salary sacrifice your employer
will pay additional employer contributions based upon the amount you
sacrifice. This case study gives anexample of how thiscouldwork.

Case study
Susan joins the PwC scheme and agrees to
sacrifice 100 a month. PwC agree to pay this
equivalent amount into her plan but, because
PwC share the NI saving they make with Susan,
her salary will only reduce by 94. As PwC is
making this contribution, it is made before any
deduction of tax or National Insurance, so the
full100 is added to her plan. In addition, PwC
contributes a further 100 a month. So in total,
200 a month will be invested on her behalf in
return for a reduction in gross salary of 94.

How the total pension contributions

aremadeup
The diagram below shows an example of how the total pension
contributions into your plan are made up. Please note this isfor
illustrativepurposes only.

Your salary sacrifice

Additional employer
contribution

Total employer
pension
contribution

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Important information to know

about salary sacrifice
Salary sacrifice

Like any financial decision salary sacrifice may not be suitable

for everyone.

Your monthly salary is reduced by the

Certain State benefits, e.g. the State Second Pension,

salary sacrifice contribution you have

requested tomake

There is no pension deduction from

your salary

The National Insurance deduction

islower

statutory sick pay and statutory maternity pay, are related

to total gross earnings and a reduction in your taxable
salary may reduce yourentitlements.

Salary sacrifice will not reduce salary-related payments or

benefits that you receive from PwC.

PwC will continue to use your base pay as your reference

salary before any adjustments for salary sacrifice when

calculating all other salaryrelated benefits (e.g. salary
increase, overtime, bonus payments, life assurance). Salary
sacrifice may still have an impact on things which are based
on your salary and not received from PwC, for example,
future borrowing levels.

Salary sacrifice is a change to your contract of employment.

Please see the information in the PwCChoices manual for
further details.

Salary sacrifice is organised by your employer, so if youhave

any questions please refer to the information in the PwC
Choices manual. If you are in any doubt asto whether salary
sacrifice is suitable for your circumstances you should seek
professional advice.

Could you live on the basic

State pension?
The State pension is designed to cover only yourbasic needs
in retirement and is not paid to everyone as an automatic right.
Howmuch you get depends on the National Insurance
contributions you have made.
The basic State pension is not really enough for the majority
ofpeople to live on nowadays. Below we have outlined the
current State pension benefits that the Government is paying.
Wouldthisbe enoughfor you?

Current basic State pension for an individual

115.95*aweek.

Current basic State pension for a couple (where one

partner does not have sufficient National Insurance
contributions to qualify forfull State pension)
185.45*aweek.

You may also be entitled to some additional State pension.

There is also a means-tested State benefit called the

Pension Credit, whichguarantees a minimum income after

tax of at least 151.20* a week for an individual, 230.85*
for a couple. The age from which you can get Pension
Credit is gradually increasing so that it is aligned with the
State pension age.

* 2015/16 tax year figures

None of the State pensions are available until you reach State
pension age. More information on State pension age can be
found at www.gov.uk/browse/working/state-pension.

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Living longer

In summary

People in the UK are living longer than ever before. And as

medicine continues to advance, we expect life expectancy
toincrease even further. That means that people are living in
retirement for longer than before in fact, you could easily
beretired for 30 years or more.

Living longer means you will need income for a longer

period once you are retired. We believe that saving for
your retirement in the PwC GPP makes sense because:

People now have higher expectations from retirement too.

Youmay want to visit more of the world, to spend some money
on your home, or to buy the car youve always dreamed of. At
the back of your mind, you know you may need to spend a
significant amount on care or medical costs too. All of it costs
money. So it pays to work out how much you may need for
your retirement right now.
Here are some examples of the costs you may have
toconsider:

Must have

Nice to have

Mortgage/rent

TV/satellite

Heating

Telephone

Water
Council tax
Food
Car/travel
Insurance
Debt repayments
Clothes

Like to have
Entertainment
Eating out
Holidays
Hobbies
Presents

Your employer contributes.

Contributions to a pension are a taxefficient way
of saving for your retirement.

The State pension may not cover your needs

inretirement.

How does your plan work?

If you choose to join the PwC GPP, Friends Life will set up a
plan in your name. Contributions are usually made through
Choices, which is a salary sacrifice arrangement (see page 4
for details) however you can also pay personal contributions
directly to Friends Life. Friends Life will only accept contributions
from you which are entitled to tax relief. For more information on
tax relief, please see the accompanying Key features document.
The total pension contributions are invested into the investment
fund, or funds, that you choose.
If you dont make an investment choice, all of the contributions
will be invested in the My Future investment programme, which
will manage your investments for the life of your plan.
Although PwC has made this selection for those who
dontmake a fund choice, there are no guarantees that this
arrangement is the most suitable for your own personal
circumstances. For more information about your choices
andinvestment programmes, please see the Choosing
yourinvestment funds brochure.

You own this plan

If you leave PwC, you are able to keep your pension plan with
Friends Life, including any contributions made by PwC. You
can continue to make contributions yourself, and you will get
tax relief on these. The range of funds available to you and
charges for these funds may be different. If you do leave, we
will write to you providing further information.

Automatic enrolment
The Government is encouraging people to save for retirement
by introducing Automatic Enrolment. The PwC GPP is a
qualifying pension arrangement in line with the regulations, and
the minimum permitted contribution meets the Governments
minimum requirement under Automatic Enrolment legislation. If
you leave the PwC GPP but remain employed by PwC, you may
be automatically enrolled into a pension scheme in the future.
Please speak to your employer for further information.

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How your pension works

overtime
The diagram below shows an example of howyour pension
plan works with contributions being made, potential investment
returns being added, charges being taken out and what you
might choose atretirement. Please note that the diagram is
forillustrative purposes only.

At retirement
Over time the value of your pension plan shouldgrow, and
atretirement it is converted into a regular income or pension.
This is usually done by buying an annuity. You can buy this
annuity with us or take the Open Market Option (OMO) to

another provider. This is explained in more detail in the Key

Features document. Undercurrent legislation it is also possible
to choose other options, such astaking a proportion (up to
25%) of your plan as a taxfree cash sum with a lower regular
pension. Your choices will be explained to you in more detail
when you get closer toretirement.
You can be reassured that should you die before you retire,
wewill pay out the value ofyour plan. We recommend that
youcomplete anexpression of wish form to nominate who
youwould like this to be paidto. We will take the nomination
into account but are not bound by it. Please contact us if you
would like this form. Our contact details are shown on the
Further information and help page. For further information
onwhat happens should you die before you retire, please
seethe Key Features document.

Salary sacrifice contributions

Employer contribution
from salary sacrifice
Additional employer
contribution

10

Potential investment returns

Pension
Plan
Charges

Up to 25% tax-free cash

Remainder of the
value of the plan
provides a pension

How much should I put

by for retirement?
How much youll need and how much you can afford to pay in
will depend on your personal circumstances.
As part of this pack, you will receive a Key features illustration.
The aim of the illustration is to give you an idea of how much to
contribute to your plan. The charges and growth rates assumed
in the illustration are used purely for illustrative purposes.
After joining the plan you will receive a personal illustration
that will be based on your own individual details and the level
of contribution you have chosen to make. This is designed to
give you an idea of how much you could get back when you
retire based upon the choices you have made.
Our online tool, eValuate with Friends Life, at
www.friendslife.co.uk/membersite also gives you further
information and help.
If you do not have a personalised illustration at this stage but
would like one, you may request one from Friends Life before
you join the plan.
The value of an investment is not guaranteed and can go up
and down. You could get back less than you have paid in.

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How can I join?

1 Read all the information provided and decide on the level
of Total Contributions to request through Choices.

2 If you are not sure the plan is right for your needs you should
contact a financial adviser. You may have to pay for financial
advice. Please see the next page forfurther details.

3 Join by following the instructions youve received

fromPwC.

Starting your journey to a

brighterfuturenow
Thank you for reading the information
inthis brochure. Thesooner you start
saving for your future the better.
Startyour journey now.

12

Further information
andhelp
Further information
If you want more information about the funds in
thisbrochure, you can find fund factsheets at
www.friendslife.co.uk/customer/funds, or
youcan phone our helpdesk on0845 602 9221.
If you feel you would like advice, you can pay for
financial advice from a financial adviser. If you
donthave an adviser, you can contact the
followingorganisations:

Unbiased: www.unbiased.co.uk

Friends Life has developed interactive online tools,

known as etools, to help you make sense of your
pension planning. They can help you to decide
which funds to invest in and how much to contribute.
Log in to: www.friendslife.co.uk/microsite/pwc
toregister online for access to these useful tools:
eValuate with Friends Life helps you to consider
your attitude to investment risk and forecast your
possible future retirement income by looking at a
range of scenarios. It also shows you the funds
available on your scheme.

Institute of Financial Planning: 0117 945 2470

efinance enables you to manage your personal

finances online and gives you accessto:

GOV.UK provides impartial UK Government

Financial Toolbox which allows you to view

orat www.financialplanning.org.uk
informationon pensions at
www.gov.uk/browse/working/
workplace-personal-pensions

Contact details
Please remember PwCs HC Direct will normally
be your first point of contact.

If you have any questions, you can:

asnapshot of your financial position, including

any investments you may have.

Financial Portfolio which allows you to

inputinformation about any investments

youmay have.

etutor is an interactive online learning programme,

which can help you further with your retirement
planning and decisions.

Call us on 0845 602 9221 at the following

times: Monday to Friday between 8.30am
and 6pm. We may record calls to improve
our service. Calls may be charged and
these charges will vary; please speak to
your networkprovider.
Fax us on 0845 600 0624.
Email us at
[email protected].

Email is not a secure form of communication

and you should not email us with any
personal information about you or personal
details about your pension with us. For
similar reasons, we will not reply by email if
to do so would compromise your security.
Write to us at Friends Life, PO Box 1550,
Salisbury, SP1 2TW.

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Notes

14

At Friends Life we want you to feel confident about your financial

future, ready to face lifes challenges and take its opportunities too.
We know that everyone has their own individual outlook so, wherever
we can, we use our knowledge and experience to offer products,
services and options that suit your particular needs. And we aim to
make it as easy as possible for you to deal with us.

For our complete range of products and services visit

www.friendslife.co.uk

Friends Life and Pensions Limited

An incorporated company limited by shares and registered in England and Wales, number 475201.
Registered office: Pixham End, Dorking, Surrey RH4 1QA. Authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Telephone 0845 602 9189 calls may be recorded.
www.friendslife.com
Friends Life is a registered trade mark of the Friends Life group..
BPEN376/A 04.15

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