This document summarizes retirement planning and life assurance provisions for Alzheimer Scotland employees. It discusses key sources of retirement income like state pensions and personal pension funds. It outlines important questions for retirement planning such as saving targets and dates. The document also reviews Alzheimer Scotland's pension plan through NEST, including contribution levels, investment options, and benefits. Employees have life assurance of 3 times salary through Aviva that is paid to nominated beneficiaries upon death.

1. Alzheimer Scotland
Your Retirement and Life Assurance Provision
19 May 2015

2. Agenda
 Retirement
 Life Assurance

3. Retirement – Sources of Income
Retirement
Income
State Pension
Benefits
Pension Funds
Other
savings/income

4. Saving for retirement – essential questions
1. What if I don’t save for retirement?
2. When do I want to retire?
3. How do I want to live in retirement?
4. Will I be able to retire?
5. Can I, and do I want to save for retirement?

5. What if I don’t save for retirement?
Retirement
Income
State Pension
Benefits
£0
£0

6. When?
 Male or female
 When were you born
 No earlier than State Pension Age
How much?
 Number of years you have paid National Insurance Contributions
(NIC)
www.gov.uk/calculate-state-pension
Key questions and where to get the answersState Pension
Benefits

7. Alzheimer Scotland NEST Pension Plan
Benefits – When &
What?
Contributions – How
much?
Investment – Which
fund(s)?

8. Benefits - When?
Earliest date you can take your Alzheimer Scotland Pension Plan
benefits:
 Currently age 55
 Increasing to 57 from 2028
 Thereafter, no earlier than 10 years before State Pension Age
Selected Retirement Date
 You choose – if not, default dare is your State Pension Age
 Annual Plan statement benefits projection
 Sets date for Retirement Date Fund investments
8

9. Benefits – What?
Your Alzheimer
Scotland Pension Fund
Cash 25% tax
-free
+
Pension
Cash 25% tax-
free + 75%
taxable
Drawdown –
each payment
25% tax-free,
75% taxable
Pension
Cash -25%
tax-free +
taxable
drawdown

10. Benefits – What?
Contributions
Investment
Returns
Your
Alzheimer
Scotland
Pension Fund

11. Contributions - How it works?
NEST
Employer
Contribution
Employee
Contributions
(x80%)
Tax Relief
(20%)

12. Contribution Structure
Employer
Contribution
Employee
Contributions
(x80%)
Tax Relief
(20%)
Dates Employer Contribution
(% of qualifying
earnings)
Your Minimum
Contribution (% of
qualifying earnings)
Enrolment date to 30
September 2017 1% 1%
1 October 2017 – 30
September 2018 2% 3%
1 October 2018 onwards 3% 5%
Qualifying Earnings - All monthly earnings between £486 and £3,532 (2015/16
tax year)

13. Your Contributions – How tax-relief works
Net Pay
Gross Pay £1,000
Tax £23.33
NI £39.40
Employee pension contribution (Qualifying earnings =
£1,000 - £486 = £514 x 1% X 80%)
£4.11
Net Pay £933.16
Employee pension contribution £4.11
Tax relief 20% added by NEST £1.03
Employer pension contribution + £5.14
Total pension contribution £10.28
Example: Earns £1,000 per month with 1% contribution of qualifying earnings
Higher tax payers claim relief through self assessment
+ Employer contribution is 1% of qualifying earnings
Based on tax and NI rates for the 2015/16 tax year

14. Key questions and planning support
1. When - Am I saving enough?
2. Lifestyle - Am I saving enough?
3. Ability - Am I saving enough?
4. Capability – Can I/will I save enough?

15. Investment - Options
1. Default Investment Option
NEST Retirement Date Fund. Based on your State Pension Age (or
your selected NEST retirement date)
2. Select your own funds
Five alternative funds available from NEST

16. Investment – Plan Default Option
The Retirement Date funds work in three phases:
Phase Objectives Years to Selected
Retirement Age
(approximate)
Foundation • Preserve fund value and keep pace with inflation
• Reduce likelihood of extreme investment shocks
• Target long-term volatility average of 7%
>40
Growth • Target investment returns of inflation + 3%, net of
charges
• Take sufficient investment risks whilst reducing
likelihood of extreme investment shocks
• Target long-term volatility average of 10-12%
<40 >10
Consolidation • Gradual move to annuity-tracking and cash like
investments
• Reduce likelihood of investment shocks
• Reduce volatility
<10

17. Investment – Alternative funds you can choose
Fund Anticipated
Volatility Range
Lower Growth Fund 0 – 0.5%
Pre-Retirement Fund 2 – 5%
Ethical Fund 10 – 15%
Sharia Fund 15 – 25%
Higher Risk Fund 15 – 25%

18. Plan Charges
Annual Fund
Management Charge
– 0.30%
Contribution Charge
– 1.80%

19. Investment & Administration – NEST Online Services
 Access individual account details and update
 View contributions
 Valuation of your policy
 Switch funds
 Update nominated beneficiaries
Registration process:
 https://www.nestpensions.org.uk/schemeweb/NestWeb/faces/secur
e/USER_REG/pages/activateYourAccount.xhtml
 Follow online instructions
19

20. Planning For Your Retirement – Summary Considerations
 www.gov.uk/calculate-state-pension
 Individual annual benefit statement
 Previous employers pension schemes or individual pension policies
 www.pensiontracingservice.com
 Other savings and/or income available on retirement ?
20
State Pension
Benefits
Your Alzheimer
Scotland
Pension Fund
Other Pension
Funds
Other
Savings/Income

21. What happens if….I die before taking my retirement benefits?
 Your fund returned to your nominated beneficiary(ies) as a tax free
lump sum
 Update nominated beneficiary via NEST online access, or complete the
return nomination form included in Welcome Pack from NEST
 No completed nomination – NEST normally pay your fund to person
looking after your financial affairs on death
 Change of personal circumstances/nomination - Inform NEST to ensure
your funds are distributed in line with your wishes.
21

22. What happens if….I leave Alzheimer Scotland?
Options available:
1. Continue to make personal contributions to the Plan (minimum £10
each time)
2. Suspend contributions and restart later
3. Make no further contributions and leave funds invested until you
take benefits
You will not be entitled to a refund of contributions if you leave the Plan.
You are currently unable to transfer your fund elsewhere unless aged 55 or
over (to be removed 1 April 2017).
22

23. Life Assurance
Insurer Aviva
When am I eligible? All permanent employees aged 16 – 75
When can I join? On commencement of employment
How do I join? Automatically included
What do I pay? Nothing, full cost met by Alzheimer Scotland
Benefit Lump sum = 3 x your earnings (before salary exchange) subject
to a minimum of £5,000
Contract workers – annual basic salary
Seasonal – total earnings declared in tax year before death
When is it paid? In the event of your death as a permanent employee of
Alzheimer Scotland
Who is this paid to? Your nominated beneficiaries, at Trustees discretion
Is this a taxable benefit? No, exempt from Inheritance Tax
When does cover cease? Earlier of employment ceasing with Alzheimer Scotland or
attainment of age 75

24. Life Assurance – Nominating Your Beneficiaries
 Trustees – Alzheimer Scotland
 Trustees discretion to whom benefit payable = exempt from
Inheritance Tax
 Nomination Form available from Trustees
 Completion supports payment of benefits with minimum delays
 Complete updated form if circumstances/wishes change
24

25. Questions
?

26. Disclaimer
The contents of this presentation are confidential and not for onward distribution. Disclosure to third parties
cannot be made without the prior written consent of Mazars Employee Benefits Limited.
The information presented does not constitute advice.
It is based on our current interpretation of UK legislation and HMRC practice at the date of production. This may
be subject to change in the future and any tax rates or reliefs may be altered. Professional advice should be
sought prior to making any decision and Mazars Employee Benefits Limited will not accept responsibility for
decisions taken solely on the basis of the information presented. Some services offered by Mazars Employee
Benefits Limited are not regulated by the Financial Conduct Authority.
Mazars Employee Benefits Limited is an Appointed Representative of Mazars Financial Planning Limited which is
authorised and regulated by the Financial Conduct Authority. Registered in England and Wales No. 03893679 with
its registered office at Tower Bridge House, St Katharine’s Way, London, E1W 1DD.
Mazars Employee Benefits Limited and Mazars Financial Planning Limited are both wholly owned subsidiaries of
Mazars LLP, the UK firm of Mazars, an integrated international advisory and accountancy organisation