Understanding Your Policy

Overview

Your policy is the account that holds your pension savings with NICE Pension Group. Different policy types have different features and rules. Understanding what type of policy you have helps you know what options are available to you.

Workplace Pension Plan

A workplace pension is set up by your employer as part of your employment benefits. Contributions come from your salary and your employer adds their own contributions on top. This is the most common type of pension we administer.

Workplace pensions benefit from employer contributions, which is essentially free money towards your retirement. They also come with tax relief on your contributions. If you leave your employer, your pension stays with us - you just stop receiving new contributions.

Personal Pension

A personal pension is one you set up yourself, independent of any employer. You make contributions directly and receive tax relief on what you pay in. There are no employer contributions unless you arrange this separately.

Personal pensions offer flexibility - you control how much you pay and when. They're useful if you're self-employed, not working, or want to save more than your workplace pension allows. You can have a personal pension alongside a workplace pension.

Stakeholder Pension

Stakeholder pensions are a type of personal pension with government-set rules on charges, minimum contributions, and flexibility. Charges must be capped at a certain level and there are no penalties for stopping or changing contributions.

They're designed to be simple and low-cost. The investment options are typically limited compared to other pension types, but this keeps things straightforward for people who prefer a hands-off approach.

Self-Invested Personal Pension (SIPP)

A SIPP gives you much wider investment choice than standard pensions. You can invest in individual shares, commercial property, and a broader range of funds. This suits experienced investors who want control over their investments.

SIPPs typically have higher charges and require more engagement. They're not for everyone - if you're not confident making investment decisions, a simpler pension with a default strategy might be more appropriate.

Your Policy Number

Your policy number is your unique identifier with us. You'll find it on your statements, letters, and other documents. When you contact us, having your policy number ready helps us find your record quickly.

Policy numbers can contain letters, numbers, and sometimes special characters like slashes or dots. The format depends on when your policy was set up and what type it is. If you've lost your policy number, we can help you retrieve it after verifying your identity.

Policy Status

Your policy status tells you whether contributions are currently being paid and what options are available.

Active means contributions are being received regularly - this is typical if you're employed and enrolled in a workplace pension. Your pot grows through contributions and investment returns.

Deferred means no contributions are coming in, but your money stays invested. This usually happens when you leave an employer. Your pot still grows or shrinks with investment performance, just without new money going in.

Paid-up is similar to deferred - no new contributions, but your pension remains invested until you're ready to access it.

Multiple Policies

It's common to have more than one pension policy, especially if you've had several employers. Each policy is separate with its own value, investments, and options. You might consider consolidating them into one place for simplicity, though this isn't always the best choice - check if you'd lose any valuable benefits first.

For Financial Advisers

For IFAs, we can confirm policy type, status, and any specific scheme rules that apply. Details on available options by policy type provided on request. We can identify if multiple policies are held and provide consolidated views where authorised.