You get tax relief on your contributions into the pension scheme, which is a government subsidy to boost your savings. Plus, you get the benefit of your employer’s contributions.
The money that you and your employer pay into your pension is invested. And when you retire, you can draw the money out in any way you want.
You can usually take up to 25% of your pot tax-free – and you pay tax on the rest.
Different schemes will have different charges and different investment choices. Some might also restrict who can join and how much can be paid in each year.
Your employer decides which master trust pension scheme they want to use.
If you’re an employee and you want to find out more about your workplace pension, whether it’s a master trust or not, it’s best to talk to your employer.
If you’re an employer looking to set up a new workplace pension, or switch to another scheme, it’s a good idea to talk to a regulated financial adviser. They’ll help you choose. Financial advisers can also offer regulated financial advice, through the workplace, to employees.