Your employer has signed you up to the Penfold Pension. The Penfold Pension is provided by Penfold Savings Limited (Penfold). The Financial Conduct Authority is a financial services regulator. It requires Penfold, to give you this important information to help you to decide whether the Penfold Pension is right for you. You should read this document carefully so that you understand what the Penfold Pension is, and then keep it safe for future reference.
If you are unsure whether this product, its features, investment options and charges are right for you then you should take appropriate financial advice. Penfold is not authorised to give you financial or investment advice. If you are 50 or over there is a free and impartial service called Pension Wise to help you understand what your choices are and how they work. This can be accessed online, over the telephone or face to face - see Pension Wise or call 0800 138 3944.
The pension plan is known as the Penfold Pension and is designed to let you:
Your employer has made arrangements for you to have a Penfold Pension. This is part of your employer complying with its obligations under the automatic enrolment requirements. You do not need to do anything to become a member and there is no Application to complete. There are no ongoing choices for you to make in order to remain a member. You will be provided with a Contribution Notice and this will set out the contributions payable by your employer, and any contributions that are payable by you.
Once you have commenced a Penfold Pension, your employer will pay money to your Penfold Pension, and you may do too. You also commit to:
Below are outlined risks associated with saving for retirement through a pension plan such as the Penfold Pension.
Some of the risks below refer to the investment performance of the Fund in your Penfold Pension.
The favourable tax treatment for pension savings and for taking your pension benefits could change in the future. The age at which you can first start to take benefits could also change in the future (and the Government already has some plans to increase this from the current minimum pension age 55).
Investment performance may be better or worse than expected, which could affect the potential size of your Penfold Pension and therefore the benefits you receive.
The charges or fees you pay in relation to the Penfold Pension may be higher than expected, which could affect the potential size of your pension fund and therefore the benefits you receive.
Other things that can affect the potential size of your Penfold Pension and the benefits you receive include the amount you pay or transfer in to the Penfold Pension, or if you take benefits earlier than you were aiming for.
Investment conditions can also affect your pension income. If you convert your Penfold Pension to an annuity (i.e. purchase a policy from an insurance company that provides you with a regular income) then prevailing interest rates at the time of conversion will affect the amount of annuity you will receive. Generally speaking, lower interest rates mean lower annuity amounts, although annuity amounts are also affected by other factors such as life expectancy and your state of health.
Alternatively, if you decide to draw your pension income directly from your Penfold Pension then investment returns may not sustain your income requirement over the full course of your retirement.
There may be a delay in receiving benefits if some of your investments cannot be sold quickly.
Whilst the Penfold Pension can accept transfers from other pension schemes, not all transfers may be suitable. The Penfold Pension will not accept any defined benefit or safeguarded benefit transfers. For all transfers you are responsible, with the help of a financial adviser if necessary, for ensuring that the transfer of your other benefits to the Penfold Pension is suitable for you.
The Penfold Pension is a personal pension plan that allows you to save for retirement in a tax-efficient and flexible way.
The benefits you can receive are subject to UK pensions legislation and the provisions of the Scheme Rules. The legislation includes rules about limits on the amount of contributions that can qualify for tax relief, the earliest age you can take benefits, and limits on what those benefits can be without incurring tax penalties, including the amount that can be taken as tax-free cash.
Your employer has selected the Penfold Pension to allow it to meet its obligations under the automatic enrolment regulations and make a pension available to its employees. The Penfold Pension provides a good value, simple and quick to use, App based pension to:
If you are in any doubt as to whether the Penfold Pension is right for you, then you should consider speaking to a financial adviser.
Penfold Savings Limited (Penfold) is authorised and regulated by the Financial Conduct Authority. Penfold is the Operator and Administrator of the Scheme. This means Penfold will administer and manage the day to day running of your Penfold Pension, ranging from processing contributions, transfers, investments and paying benefits, to ensuring the Penfold Pension adheres to HM Revenue and Customs (HMRC) rules and regulations and the Scheme Rules.
Penfold also provides the digital systems to allow you to manage, give instructions and receive information about your Penfold Pension via Penfold’s App. You can access the App using the iPhone or android app on your mobile phone, or via our Website at www.getpenfold.com.
Penfold has appointed Seccl Custody Limited as the Custodian to provide the platform and systems on which investments will be held. Seccl Custody Limited is authorised and regulated by the Financial Conduct Authority.
In addition a fund manager will be responsible for the day to day management of your pension investments.
The Scheme Rules are the legal documents that have established the Scheme under which the Penfold Pension operates. They comprise the trust deed and the rules governing the operation of the Scheme. The trust deed appoints the Trustee, which is Penfold Trustees Limited, and the Scheme Operator, which is Penfold Savings Limited.
No. Stakeholder pension schemes are a specific form of pension that must meet Government minimum standards relating to contributions, charges and provision of a default investment fund. Stakeholder schemes are generally available and it is for you to consider, with the assistance of a financial adviser, if required, whether one might meet your needs as well as the Penfold Pension.
This type of pension plan does not have a separate bank account for each pension plan but operates under a designated Scheme Bank Account which is a pooled account run by the Custodian on behalf of the Trustee. Money paid in to or out of your Penfold Pension will go via this account, which may also hold uninvested cash.
The final value of your Penfold Pension will depend on how much is paid in, how long you invest for, the charges paid, and how well the investments perform.
You will be sent an annual statement showing how your Penfold Pension is doing. You can also check the value of your Penfold Pension whenever you wish on the App.
This type of pension plan allows you, once you have attained minimum pension age (currently age 55), to draw as much or as little of your Penfold Pension as income as you like, when you like, along with offering different benefit options as explained under the ‘Benefits summary’ section below. How much pension income you will get therefore depends on your choices and many variable factors such as income tax, the value of your Penfold Pension and investment performance.
Penfold charges you a fee which is based on a percentage of the value of your Penfold Pension and is deducted monthly from your Penfold Pension. The details of the fee are set out in the Penfold Charges Guide which you should read alongside this Key Features Document.
This fee includes the cost of administering your Penfold Pension which in broad terms covers such things as setting up your Penfold Pension, the ongoing administration, regulatory reporting and for carrying out certain transactions. And, it includes the fee charged by the fund manager for the management of your pension fund.
Please remember that fund managers may also charge for the purchase, sale and management of assets held within your Penfold Pension. You should refer to their separate key information documents for details.
Your employer will make regular contributions to your Penfold Pension. You may also be required to make regular contributions and these will be as set out in the Contribution Notice.
If you want to make additional contributions above those set out in the Contribution Notice you can do so, either on a regular or ad hoc basis via your employer or our App.
Contributions can be made by bank transfer, direct debit, or any other method we may advise of from time to time.
You can transfer pension benefits into your Penfold Pension from other suitable pension arrangements Please note that if you are transferring benefits from another pension scheme where you have tax free cash protection this protection may be lost on transfer.
The Penfold Pension can also accept transfers where you have those monies in “drawdown” (see the Benefits Summary below). However, if you are transferring monies in “capped drawdown” this will automatically be converted into “flexi-access drawdown” upon acceptance. Drawing an income will trigger the Money Purchase Annual Allowance, if not already applicable. You should consider this point before instructing any transfer and take advice from a financial adviser if in doubt.
The Penfold Pension will only let you make contributions up to the limits allowed by HMRC.
All relevant UK individuals can pay, and get tax relief on, contributions up to £3,600 gross each year. If your earnings are in excess of £3,600 each year, your contributions can be higher – you may make gross contributions of up to 100% of your earnings (known as “relevant UK earnings”).
Your annual pension contributions on which you can receive tax relief are subject to a maximum amount known as the Annual Allowance, which is set each year by the Government. For the tax year to 5th April 2024, the Annual Allowance is £60,000. The Annual Allowance applies as a total limit across all of your registered pension schemes in a tax year. It covers:
The Annual Allowance does not include the amount of transfers from other pension arrangements. They do not receive extra tax relief, so there is no upper limit on them. The Annual Allowance does not apply in a tax year in which severe ill-health benefit conditions are met or death occurs.
If you are a high earner i.e. have 'adjusted income' of over £240,000 and 'threshold income' of over £200,000 then your Annual Allowance will be subject to a tapered reduction of £2 for every £1 of earnings above £240,000 up to £312,000 subject to a minimum annual allowance of £4,000.
For the tax year 2023/24, if you are a high earner i.e. have 'adjusted income' of over £260,000 and 'threshold income' of over £200,000 then your Annual Allowance will be subject to a tapered reduction of £2 for every £1 of earnings above £260,000 up to £312,000 subject to a minimum annual allowance of £10,000.
Money Purchase Annual Allowance
Where you have started drawing benefits flexibly from any registered pension arrangement, then your contributions to the Penfold Pension and other money purchase pension schemes on which you receive tax relief will be restricted to the much lower Money Purchase Annual Allowance. For the tax year to 5th April 2024, the Money Purchase Annual Allowance is £10,000.
Your contributions can attract tax relief (subject to the Annual Allowance limits above).
Penfold will claim basic rate tax relief from HMRC and invest it in your pension plan. For example, for a contribution of £10,000 you would pay £8,000 and Penfold would reclaim £2,000 from HMRC. (This example is based on 20% basic rate tax).
Contributions are made net of basic rate tax irrespective of whether you are employed or self-employed. Contributions made by your employer are made gross.
If you pay income tax at a higher rate than the basic rate, you can claim the extra tax relief through your self-assessment tax return on your personal contributions.
As noted above, unused Annual Allowances for the previous three tax years may be “carried forward” for the purposes of making a contribution in excess of the Annual Allowance for the current tax year but not greater than 100% of your earnings. This cannot be used where you are subject to the Money Purchase Annual Allowance. You should take financial advice as this is a complex area.
Employer contributions are not taxable as a benefit in kind for you and the employer will normally get tax relief on employer contributions as a business expense.
If you have either Enhanced or Fixed Protection then it will be lost if you, or someone else makes a contribution in respect of you to the Penfold Pension.
Enhanced Protection was introduced to protect pension funds built up prior to 6th April 2006 from being subject to a Lifetime Allowance charge.
The Government subsequently reduced the Lifetime Allowance on three separate occasions on 6th April 2012, 2014 and 2016 and accordingly introduced Fixed Protection to protect pension funds built up prior to each of those dates from the Lifetime Allowance charge.
Protection from the Lifetime Allowance is a complex area and if you are in any doubt as to whether making a contribution will affect any tax Protection you have (or might be eligible for), you should seek appropriate financial advice.
HMRC Guidance on the impact on enhanced/fixed protection as a result of the removal of the Lifetime Allowance Charge can be found here: Lifetime allowance guidance newsletter — March 2023.
Your Penfold Pension will be automatically invested in the Default Option. You do not need to make any decisions or take any actions.
However, if you want, you can decide not to use the Default Option and you can invest in any one of a range of funds available through the App.
As noted, your Penfold Pension will be automatically invested in the Default Option and you do not need to make any decisions or take any actions.
If you want to invest in the other options available, the App will provide you with information on the funds available. This information does not constitute investment or financial advice. You are responsible for selecting the investments appropriate for you. The day-to-day management of all of our fund options are done by the fund providers.
From 6 April 2024 your Lifetime Allowance (LTA) is £1,073,100. This means the amount that you will be taxed for taking money out of your pension in relation to the LTA is:
You may have Enhanced or Fixed Protection in relation to your LTA that may enable you to take out more from your pension tax-free. If you have one of these protections, or think you may be eligible for one, you should take appropriate financial advice before starting a Penfold Pension.
Every time you take benefits from the Penfold Pension, some of your LTA is used up. Checks against the LTA are carried out at various points, including:
At each of the above stages, an allowance is made for any tests that have already been carried out.
You can transfer all or part of your Penfold Pension to another registered pension scheme at any time. However, if you have any funds in drawdown (see the Benefits Summary below), these can only be transferred in their entirety.
Option: Pension Commencement Lump Sum – also called a “tax free cash lump sum”
Option: Buy a lifetime or five-year pension income, often referred to as an “annuity”
Option: Draw a pension income directly from your Penfold Pension. This is often called “drawdown”, “flexi-access drawdown” or “income withdrawal”
Option: Uncrystallised Funds Pension Lump Sum
Option: A combination of the above to meet your individual requirements
You may take benefits from your Penfold Pension from minimum pension age (currently age 55). You may also take benefits earlier if you suffer illness or an accident which leaves you permanently unable to carry out your current occupation and you cease that occupation.
It is strongly recommended that prior to accessing your pension benefits you seek advice from a suitably qualified financial adviser or obtain guidance from Pension Wise.
On death, different tax treatments apply depending on whether you die before or after 75 - please see the section `Death benefits from your pension plan’ below.
The paragraphs below summarise the benefits payable (assuming an annuity has not been purchased). Benefits are payable in accordance with the Scheme Rules.
What benefits can be provided?
All of your Penfold Pension is available to provide your beneficiaries with a lump sum payment or a beneficiary drawdown fund or an annuity.
Who can receive a lump sum payment?
Most types of relations or people you have specified can qualify as an eligible beneficiary for lump sum death benefits under the Scheme Rules. Penfold will use its discretion to choose who to make the payments to, having made reasonable enquiries to identify your eligible beneficiaries. It is highly recommended that you complete and keep updated an “Expression of Wish” setting out who you would like your beneficiaries to be. Whilst it cannot be binding, your Expression of Wish will be taken into consideration.
Who can have a beneficiary drawdown fund or annuity?
Selected beneficiaries of the lump sum death benefit may prefer to take the benefit in the form of income via a beneficiary drawdown fund or annuity. Where the selected beneficiary is your spouse, civil partner or financial dependant they will have this option. For other beneficiaries, this option will only apply if you have previously nominated them for the income option, or where you have made no nominations and you have no spouse, civil partner or financial dependants.
To claim death benefits, the person dealing with your affairs should contact Penfold at the address shown at the end of this document. They will confirm the information needed to pay the benefits as quickly as possible.
Pension funds do not pay UK taxes on income or capital gains. However, tax cannot be reclaimed on UK and some overseas dividends.
Yes. You may opt out of the Penfold Pension at any time. Usually opting-out will mean that contributions will stop being paid to your Penfold Pension although your existing Penfold Pension assets will continue to be invested and you would be able to access your Penfold Pension and take benefits at a later stage.
If you remain employed by your employer, they may also have an obligation in the future to restart contributions for you to the Penfold Pension, in accordance with their automatic enrolment obligations (and this may mean you paying contributions too).
Additional right to opt out within 1 month if you are a Jobholder
If your employer made arrangements for you to have a Penfold Pension because you are a ‘Jobholder’ and you opt-out within 1 month of becoming a member or receiving the necessary information, then your Penfold Pension will be cancelled and you will be treated as never having become a member. You will need to contact Penfold via the website for a copy of the opt-out notice to arrange this.
Additional cancellation rights within 30 days
Even if you are not a ‘Jobholder’, you still have a legal right to cancel your Penfold Pension within the first 30 days . The right to cancel applies to the commencement of the Penfold Pension, on all transfers into the Penfold Pension and to commencing income withdrawal for the first time.
Opting out within 1 month or cancelling within 30 days
If you want to opt-out and/or cancel your Penfold Pension, you should email Penfold at the address shown at the end of this document. If you are opting out, Penfold will provide you with a copy of the opt out notice which you will need to give to your employer. Please note your employer cannot ask you or require you to opt-out of the Penfold Pension.
If you decide to opt-out within the first month, or you otherwise decide to cancel your Penfold Pension within the first 30 days, any contributions paid directly by you will be returned to you less any tax relief claimed on your behalf, which will be returned to HMRC. Where the contributions were paid via your employer, these will be returned to your employer less any tax relief claimed on your behalf, which will be returned to HMRC.
If you made investments before cancelling your Penfold Pension then the amount returned will be realised value of the assets purchased and subsequently disinvested, less any costs associated with the investment and subsequent disinvestment. This means that having taken into account any fees or charges paid in relation to the investment and any price movements (particularly downwards), you may get back less than you originally invested.
Cancelling a transfer
Where you cancel a transfer into the Penfold Pension from another pension scheme, the transferring scheme may not agree to accept back your transfer value, or may only accept it on revised terms which are not acceptable to you, in which case you will be responsible for finding an alternative scheme to transfer the funds to.
If you leave your employer, they will no longer make contributions to the Penfold Pension in respect of you. You might also decide that, even though you are still employed, you want to stop making contributions to the Penfold Pension.
In these circumstances, contributions would stop being paid to your Penfold Pension but it would continue to be invested and you would be able to access it and take benefits at a later stage.
You can choose to make contributions again in the future, in accordance with the Terms and Conditions. If you remain employed by your employer, they may also have an obligation in the future to restart contributions for you to the Penfold Pension, in accordance with their automatic enrolment obligations (and this may mean you paying contributions too).
If you have a query or complaint, please contact Penfold via telephone, email or webchat via our App using the contact details available at the end of this document. If you have a complaint Penfold will do all it can to resolve it. Details of the complaint handling process are available on request and on the Penfold Website.
If you are not happy with the response and you wish to take the matter further you can refer it, without giving up any other rights you may have, to one of the following:
The Pensions Ombudsman
10 South Colonnade
Telephone number: 0800 917 4487
Financial Ombudsman Service
Telephone number: 0800 023 4567
Please contact Penfold. Contact details can be found at the end of this document.
At the start of your Penfold Pension, a generic illustration giving details of the potential benefits and costs will be supplied or on request prior to your Penfold Pension commencing. We will issue an annual personalised statutory money purchase illustration. We will also provide you with a personalised illustration when you decide to take benefits from your Penfold Pension.
The Financial Services Compensation Scheme (FSCS) may provide protection if Penfold cannot meet claims made against it or if investments or money cannot be returned.
If you are eligible, the maximum level of compensation for claims against firms declared in default on or after 1st April 2019 is £85,000 per person per firm. Further information about compensation arrangements is available from the FSCS website at www.fscs.org.uk.
Personal pensions are regulated contracts in their own right and hence are covered by the FSCS. Investments with regulated investment providers or insurance companies will be covered separately under the FSCS.
Those companies will provide information about the levels of cover provided.
Your status under the FSCS does not affect any statutory right you may have to compensation.
This Key Features Document gives a summary of the Penfold Pension. It does not include all the definitions, exclusions or terms and conditions. The full contractual terms are set out in the Scheme Rules and the Penfold Pension Terms and Conditions and the Auto-Enrolment Schedule to the Terms and Conditions, all which are available at getpenfold.com/terms. If you would like clarification of any of the information provided in this document, please contact Penfold at the email address shown at the end of this document.
The Administrator and Operator of the Penfold Pension is Penfold Savings Limited and the Trustee of the Penfold Pension is Penfold Trustees Limited, both of whom can be contacted at:
You can also contact us via webchat in the App, which you can access using the iPhone or Android app on your mobile phone, or via our Website at www.getpenfold.com.
Penfold® is a trading name of Penfold Savings Limited whose registered office is WeWork Moor Place, 1 Fore St Ave, London EC2Y 9DT and is registered in England and Wales (Company Number 11668244). Penfold Savings Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 826097).
Seccl Custody Limited is registered in England and Wales (Company Number: 10430958), and authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 793200).
You can check these details at Companies House www.gov.uk/government/organisations/companies-house and the FCA’s website at www.fca.org.uk/register.