My Sony Pension: with you at every step

Whether you’re just joining, reviewing your investments or about to retire, we’ve got all you need to know at every step.

JOIN MY SONY PENSION.

Congratulations! You’re joining an award-winning pension scheme. My Sony Pension is about helping you make the most of this valuable workplace benefit, so you can look forward to your future.

HOW DOES MY SONY PENSION WORK?

The way it works is simple. You pay monthly contributions into your personal account in My Sony Pension, and Sony does too. These contributions are invested to help them grow over time. Then, when you’re ready to retire, you can use your My Sony Pension savings flexibly. If you want to, you can take a tax-free cash lump sum of up to 25% (capped at £268,275) and use the rest to provide a retirement income in the way that’s right for you.

CONTRIBUTIONS

You’ll be automatically enrolled into My Sony Pension, so you don’t have to do anything. When you join, you pay the minimum level of contributions, which is 5% of your pensionable salary. Sony will contribute 10%.

YOU PAY

5%

SONY PAYS

10%

TOTAL CONTRIBUTIONS

15%

However, if you want to increase your contributions, so will Sony. Find out about saving more

IT COSTS LESS THAN YOU THINK

The great news is that you don’t have to pay income tax on your pension contributions, which means your contributions don’t cost as much as you might think. If you’re a basic rate taxpayer, every £1 you contribute into My Sony Pension actually costs you just 80p.

SALARY SACRIFICE

Your contributions are normally paid via salary sacrifice. In this way, your salary is effectively reduced by an amount that equals your contributions. It means that you also make savings on National Insurance (NI) contributions, bringing the cost of contributing £1 down even further to around 68p. Salary sacrifice doesn’t affect any of your other benefits.

Example

Alex earns £30,000 a year and pays minimum contributions of 5%, which is £125 a month. Here’s how his My Sony Pension contributions stack up:

Alex pays

£85

Tax relief

£25

Salary sacrifice saving

£15

Sony pays

£250

Total contributions

£375

A total of £375 is paid into Alex’s pension account each month at a cost of just £85 to Alex.

WHAT HAPPENS IF ...

SAVE.

I'M IN MY 20s-30s

You’ll probably be in your 20s or 30s when you start saving into a workplace pension, like My Sony Pension. Whether you’re new to retirement saving or simply new to My Sony Pension, it’s always a good idea to think carefully about how much you’re saving and whether this is enough.

HOW MUCH DO YOU NEED TO SAVE?

A general rule is to take your age when you start saving and use half of it as a percentage of your income. So, if you start saving at age 30, you’ll need to save 15%, if you start saving at age 40, you’ll need to be saving 20%. The earlier you can start saving, the better. The good news is that pension saving is a long-term thing, which gives you lots of time to build up a pot of money for your future.

SAVING MORE

When you join My Sony Pension, you automatically start paying contributions of 5% of your pensionable salary. Sony adds to this and pays 10%. However, it’s worth thinking about if you can afford to pay more, because if you choose to increase your contributions, so will Sony.


The more you pay, the more Sony pays up to a maximum of 14% of your pensionable salary, as shown in the table. Paying as much as you can afford means you can benefit from valuable extra contributions from Sony – money that you wouldn’t otherwise get.

YOU PAY SONY PAYS TOTAL CONTRIBUTIONS
3% 6% 9%
4% 8% 12%
5% 10% 15%
6% 12% 18%
7% 13% 20%
8% 14% 22%
Over 8% 14% (max) Over 22%

IT COSTS LESS THAN YOU THINK

Remember, you don’t have to pay income tax on your pension contributions (up to certain limits), which means increasing your contributions won’t cost as much as you might think. If you’re a basic-rate taxpayer, every £1 you contribute into My Sony Pension actually costs you just 80p. (If you’re a higher-rate taxpayer, each £1 costs you just 60p.) You can change your contribution rate by contacting HR and advising them of your new contribution rate.


If you want to pay more than 8%, you can pay additional voluntary contributions (AVCs). Your AVCs can be a percentage of your pensionable salary or a fixed amount each month. Simply contact HR to let them know how much you’d like to pay as AVCs.

SALARY SACRIFICE

Your contributions are normally paid via salary sacrifice. In this way, your salary is effectively reduced by an amount that equals your contributions. It means that you also make savings on National Insurance (NI) contributions, bringing the cost of contributing £1 down even further to around 68p.

INVEST.

I'M IN MY 30s-40s

The contributions you and Sony pay into My Sony Pension are invested to help them grow. The amount of money you’ll have in your pension account when you retire depends on three things:

  • how much you and Sony have paid in
  • how much you’ve paid in charges
  • how your investments have performed.

WHAT ARE YOU AIMING FOR?

You can choose how your money in My Sony Pension is invested. You might want to be ‘hands-on’ and manage your investments yourself or maybe you’d rather take a more ‘hands-off’ approach and have your investments managed for you. Investing responsibly might be important to you and you may already know how you want to use your money at retirement. Whatever you prefer, there’s plenty of choice, so you can find the right investment option for you.

THE DEFAULT INVESTMENT OPTION

If you don’t tell us how you’d like to invest your contributions, they’ll automatically be invested using the My Sony Pension default investment option, called My Future Focus Lifetime.


It aims to grow your money while you’re a long way from retirement and then gradually reduce the level of investment risk in the final 10 years leading up to your selected retirement age. Everything is managed for you automatically and you don’t need to make specific investment decisions. It gets your pension account ready for the different ways you can take your money when you retire:

  • drawdown
  • annuity
  • cash.

The default option is for you if you haven’t yet decided how you’ll take your money at retirement or if you want to keep your options open.

LIFESTYLE INVESTMENT OPTIONS

Unless you’re a hands-on investor and managing your investments yourself, you’ll probably be in your 30s or 40s when you need to start thinking in more detail about how your money in My Sony Pension is invested.

WHAT'S LIFESTYLING?

Lifestyling is a way of managing your investments for you. In the early years when you’re a long way from retirement, your money is invested in funds which aim to maximise growth. Then, in the years as you get closer to retirement, your money is automatically and gradually switched from growth investments into less volatile investments like bonds and cash. This helps to ‘lock in’ any investment gains and protect the value of your My Sony Pension from any sudden changes in market conditions when you’re close to retirement.


The lifestyle options are for you if you know how you’d like to invest your money, but you don’t want to manage your investments yourself. There are three lifestyle options to choose from.

  • The Stewardship Lifetime programme follows an ethical approach. While you’re investing for retirement, you can know that your money is helping to build a sustainable future for the world around us.

  • The My Future programme includes a lifetime choice (if you want to keep your options open) and three targeted choices if you know you want to use either drawdown, annuity or cash at retirement. The My Future options are all passively managed, which means they track the performance of a benchmark indicator. Lifestyle switching begins at 15 years before your retirement age.

  • The My Future Focus programme includes three targeted options for drawdown, annuity or cash at retirement. They are all actively managed, which means the fund manager aims to outperform a specific benchmark. Lifestyle switching begins at 10 years before your retirement age.

SELECTED RETIREMENT AGE

If you’re using one of the lifestyle options, it’s really important to make sure your selected retirement age fits with your plans. This is because lifestyling begins based on when you plan to retire.


If you’ve left your selected retirement age at 65, but you’re actually hoping to retire earlier, it could mean that your pension account is still invested in a growth fund too close to your retirement. If there’s a sudden downturn in the financial markets, your retirement savings might not have enough time to recover.


Similarly, if you’ve chosen age 55, but find you want to continue working a bit longer, your investments will have started switching into less volatile funds too soon and you might miss out on some investment growth.

SELF-SELECT INVESTMENTS

This is for you if you prefer to manage your investments yourself, choosing from a range of different funds. There are different asset classes, sectors and geographical areas. Each fund has its own level of risk. You decide how to invest your savings depending on your financial goals, your personal values and your attitude to risk.


There’s no programme in place to monitor your investments and no lifestyling as you approach retirement. You’ll need to have sufficient knowledge and time to make these decisions yourself and keep an eye on what’s happening with your investments.


You can see the range of self-select funds and get further information on each by logging into My pension account.

There’s more detail on each of the investment options in the investment guide. You can make changes to the way your pension account is invested at any time by logging into My pension account.

REVIEW.

I’M IN MY 40s-50s

We understand that life gets busy and saving for retirement can be one of those ‘stick-it-on-the-fridge’ things that you mean to look at, only to find the reminder note still on your fridge door months later.

IT'S TIME TO CHECK YOUR PROGRESS

If you’re in your 40s and 50s, although retirement might still seem a long way off, it’s a good time to check your progress and see where you are with your retirement saving. You may have been a member of My Sony Pension for a while, or you may have recently joined, having been a member of other workplace pension schemes.

HOW MUCH MONEY DO YOU NEED IN RETIREMENT

If you’re finding it difficult to answer this, you’re not alone. People are living longer than ever before, and it’s quite possible that you could spend a third of your lifetime in retirement. Less than a quarter of us really understand what we’re going to need in retirement and how much we should actually be saving.

WORK OUT YOUR EXPECTED INCOME

My Sony Pension

Your annual benefit statement will give you an illustration of how much pension you could get at retirement if you continue to save until your retirement age at your current rate and use your pension account to buy an annuity

Other workplace or personal pensions

Include income from other workplace pensions or personal pensions you have

State pension

Your State pension is payable from your State pension age (66, 67 or 68).

REVIEW YOUR STRATEGY

There are some things you can do now to make a difference.

  • Boost your savings

Increasing your contributions by just 1% could make a big difference to your retirement income. Don’t forget that if you aren’t already paying 8%, you’re missing out on the maximum contribution from Sony of 14%.


Remember, you don’t pay income tax on pension contributions (up to certain limits), so every £1 you contribute will only cost you 80p if you’re a basic-rate taxpayer (or 60p if you’re a higher-rate taxpayer).


You can make changes to your contributions at any time by logging into My pension account.

  • Change your selected retirement age

Check that your selected retirement age still matches your plans for retirement. Adjusting when you stop working will have an impact on your My Sony Pension. A delay to retirement will give you more time for extra contributions and opportunity for investment growth.


You can change your selected retirement age by logging into. My pension account.

CHANGE TO MINIMUM RETIREMENT AGE

The earliest you can start taking your My Sony Pension is age 55. This minimum age is increasing to age 57 in 2028, which may affect your plans to retire early.

PLAN.

I’M IN MY 50s-60s

While taking your benefits might not be the right thing for you at the moment, knowing what your choices will be for your My Sony Pension can help you plan for your future.

WHAT'S IMPORTANT TO YOU?

As well as understanding your retirement options, it’s a good idea to think about your personal circumstances and what matters to you.
  • When do you want to retire?
  • Do you have a partner who’s also going to retire?
  • Do you have any dependants you need to provide for?
  • What’s your health like?
  • Do you want to manage your retirement income yourself?
  • Do you have any other pensions or sources of income?
  • Do you have debts or a mortgage to pay off?

WHAT ARE MY RETIREMENT OPTIONS?

Your savings in My Sony Pension are very flexible. You can use the money in your pension account in the way that suits you best. You can take up to 25% of the value of your account as a tax-free cash lump sum (capped at £268,275) and then use the remainder to provide a taxable income in one of the following ways:

  • Income drawdown – an arrangement where you leave your savings invested and take cash sums as and when you want to.
  • Annuity – you use the money in your pension account to buy an insurance product that guarantees you a regular income for the rest of your life. There are different types of annuities, and you can shop around to get the best deal – like you would for your home or car insurance.
  • Cash – you can take the whole amount as a cash sum. Bear in mind that only the first 25% (capped at £268,275) is tax free and you’ll be taxed on the rest.
  • A combination of these – you can mix and match to suit your circumstances. For example, you might want to use drawdown or cash at the start of your retirement when your expenses might be higher, but then later buy an annuity, if you don’t want to manage your retirement income yourself. It’s completely flexible and up to you.

REVIEW YOUR INVESTMENTS

Check that the way your pension account is invested matches with the way you plan to use the money, so that it’s in the right place to suit your choices when you retire.


If you’re using one of the lifestyle strategies, check it’s targeting the choice you’ll make for taking your money (drawdown, annuity, cash or keeping your options open) and that your selected retirement age is correct.


If you’re a ‘hands-on’ investor, you might want to check the level of risk in your investments to avoid any unwelcome surprises from sudden falls in the markets close to your retirement.

GETTING FINANCIAL ADVICE

It’s a big decision so it’s worth spending some time to think about your options and plan in advance, so you can really think things through without rushing.


If you’re not sure what you want to do, you should get independent financial advice from a certified adviser who’s qualified to give advice about pensions. A financial adviser will charge for their service but will be able to talk you through your options in relation to your circumstances. You can find an adviser in your local area by going to www.unbiased.co.uk


Moneyhelper is a free government service providing an easy way to get trusted help for your money and pension choices. It helps people to clear their debts, reduce spending and make the most of their income to build up savings and pensions and know their options. Available online or over the phone, it offers clear money and pensions guidance, as well as pointers to trusted services, if you need more support.

BEWARE OF SCAMS

Scammers are continuing to target pension pots of all sizes. Common pension scams include early pension release or free pension reviews. You should always:

  • reject any unsolicited contact about investments
  • check the Financial Conduct Authority’s warning list
  • avoid being rushed into any decisions
  • get impartial advice.

If in doubt, always speak to HR.


Don’t let a scammer ruin your retirement. There’s more information on the Pension Regulator’s website about pension scams and how to avoid them: www.thepensionsregulator.gov.uk/en/pension-scams

RETIRE.

I'M READY TO TAKE MY BENEFITS

Congratulations! You’re getting ready to retire. If you haven’t yet considered how you want to take your My Sony Pension, you can find out more about your options in Planning ahead for a successful retirement

SEVEN STEPS TO MAKING IT HAPPEN

  1. Request a retirement quote from Aviva – you can do this online by logging into My pension account to start the retirement process

  2. Take financial advice if you’re still thinking about your choices.

  3. Decide how much tax-free cash you want to take (up to 25%)

  4. Decide whether you’ll be using income drawdown, buying an annuity, taking cash or a combination of these.

  5. Beware of scams

  6. Complete all the relevant forms from Aviva to put your benefits into payment.

  7. Start enjoying your retirement.

WELLBEING INTO RETIREMENT

Retirement is an exciting time, but it’s also a big lifestyle change which can take a bit of time to adjust to after you stop working.


Although you may be looking forward to having more free time, you might also be worried about missing the routine of the working day and how you’ll fill your time. These feelings are normal. It can be helpful to think of retirement not as an event but more of a process.

NEW THINGS TO DO

When the world is your oyster, sometimes knowing where to start can be overwhelming. Here are some ideas:

  • Hobbies – do your current hobbies give you enough time with other people?
  • Learn something new – retirement is great time to develop new skills and interests. Check out the Open University, your local college or the University of the Third Age
  • Volunteer – pass your skills onto others and get more involved in your local community
  • Work – although retired, many people take some part-time work to give structure to their lives, earn a bit of extra money or do something they enjoy.

TAKE CARE OF YOURSELF

Don’t forget that once you reach a certain age, you become entitled to different health benefits:

  • Free NHS eye test when you’re over 60
  • Free NHS prescriptions in England and Wales when you’re over 60
  • Flu jab – free to anyone over 50
  • Free health check – anyone between the ages of 40 and 74 is eligible for a free NHS health check every five years.