Saving for your future has never been more important. Making a start now can really help your future self. Membership of the SAP pension scheme is a tax-efficient way to do this. If you feel you cannot commit to paying 5% of your basic salary yet, Pension Lite may be the answer.
- The earlier you start to save into a pension scheme, the more time your savings have to grow.
- Under Pension Lite, you choose a contribution level of 3% or 4% of your basic salary. SAP will add 6% of your basic salary. If you think you can afford to pay 5% of your basic salary, check out Pension.
- Your payments will be taken via salary sacrifice and are taken from your salary each month before tax – meaning you pay less tax.
- Because SAP saves employer’s National Insurance by using salary sacrifice, they will also pay an additional 7% of whatever you pay into your pension each month. SAP calls this NI passback.
- The SAP pension scheme is a low cost, flexible group personal pension. This means that you’ll have your own pension policy within the SAP pension scheme. It’s in your name, you have the policy document, and you can select your investments from the range on offer, if you wish.
Pension Lite is part of the ‘Savings Choices’ SAP offers to help you get the savings habit. The other three are Pension, Student Loan and ISA. Click here to find full details of how Savings Choices work.
At a glance
- Flexible benefit
You can sign up for flexible benefits at any point during the year. Be aware that you can’t always make changes to these benefits at any time during the year, so check on the conditions when you sign up.