You may also contribute to the Plan in order to top up your benefits from a company pension scheme. However, you should not view this Plan as an alternative to a company scheme.

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Can children have a Plan?

Yes. Children can have their own Personal Pension. The Plan must be opened by a parent or legal guardian who is responsible for the Plan until the child reaches 16 (18 if in higher education or not working).

How much can I contribute?

You can contribute from as little as £20 as a regular monthly and/or single payment up to the maximum limits allowed by HM Revenue & Customs. Within these limits your employer can also contribute to your Plan on your behalf.

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What are the maximum contribution limits?

You can contribute up to 100% of your annual earnings, and receive tax relief on your contributions, up to a maximum limit known as the Annual Allowance. This allowance is set at £225,000 for the 2007/08 tax year and £235,000 for the 2008/09 tax year.

Even if you have no earnings you are allowed to contribute up to £3,600 (inclusive of tax relief) each tax year.

How can contributions be paid?

Lump sum investments can be made by cheque or direct credit.

Regular contributions, which should be made for at least five years, are collected monthly by direct debit or standing order.

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How do I claim tax relief on my contributions?

Forester Life will automatically claim basic rate tax relief direct from HM Revenue & Customs and add it to your contributions. You obtain tax relief even if you are a non-taxpayer.

If you are a higher rate taxpayer you can claim additional tax relief from HM Revenue & Customs as part of your annual tax assessment.

In addition to the tax relief, your contributions benefit from tax-efficient growth. Forester Life invests your contributions and all the profits from these investments, except the dividends from shares, are free from income tax, corporation tax and capital gains tax.

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How will I know how my investment is doing?

Every year we will send you a statement showing how much has been paid into your Plan, how many units you have, and how much your Plan is worth.

You can check unit prices at any time. Simply view unit prices here or phone the Unit Price Information Line on 0800 990011.

You should monitor the value of your Plan, and the level of your contributions, to ensure that it is sufficient to meet your retirement neds.

Will I be able to increase the amount I contribute?

We will automatically increase the amount of your regular contributions each year in line with the Retail Price Index to help you keep pace with inflation.

You can make additional increases to your Plan at any time subject to minimum and maximum contribution limits.

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Can I stop or reduce my monthly contributions?

You can stop and re-start your regular contributions without penalty.

You can reduce the amount you contribute monthly, subject to a minimum ongoing saving of £20.

If you wish to cancel the automatic increases, you should tell us at least 14 days before the increase is due.

When can I take the benefits?

You can start taking the benefits of your Plan anytime between your 50th and 75th birthdays (this is to change to 55th-75th birthdays from April 2010).

You do not have to retire to start taking your benefits.

You can take up to 25% of the Plan value as a tax free lump sum with the balance paid as a pension for life. The pension will be taxable as earned income.

You have the option to transfer the entire fund, free of charge, to another pension provider. This may be beneficial if you can obtain better pension rates elsewhere or if you wish to take advantage of the wider range of pension options available in the marketplace.

We will write to inform you of your options prior to your intended retirement date.

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What are the charges?

The Forester Life Personal Pension Plan is a stakeholder pension scheme and as such meets the Government standard for ‘capped charges.’

There is an annual charge of 1.5% of the value of the funds you accumulate. If your fund is valued at £500 throughout the year, this means that we deduct £7.50 that year. If your fund is valued at £7,500 throughout the year, this means that we deduct £112.50 that year. After 10 years these deductions would reduce to £5.00 and £75.00 respectively.

There are no other charges to you.

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What are stakeholder schemes?

Stakeholder products have been introduced to encourage more people to save for their retirement by offering a simple, low-cost and flexible, personal pension.

In order to qualify as stakeholder, a pension scheme must satisfy certain standards including minimum payments from £20, a default investment option, a range of payment methods and charges of no more than 1.5% pa of fund value (reducing to 1% pa after 10 years).

Scheme investments must be suitable and take into account the need for diversification, with lifestyling to progressively reduce the investment risk in the run up to your retirement.

Schemes that meet stakeholder conditions are not necessarily suitable investments for a customer, nor do they offer any guarantee of performance.

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Does my Plan have to be lifestyled?

We will write to tell you when lifestyling is due to commence which will normally be from the date five years before your intended retirement date.

At that time you can choose whether you wish your Plan to be lifestyled or to continue to be fully invested in the Stakeholder Managed Fund 1.

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Will the pension affect my eligibility for State pension benefits?

Depending on your personal circumstances your pension from this Plan may affect your eligibility for means tested pension benefits from the Government. For further details, please speak to your financial adviser.

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What happens if my circumstances change?

You should tell us if there is any change in your employment circumstances or your tax status as this may affect the amount you can contribute to or your eligibility for your Plan.

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Can I transfer my Plan?

Yes, HM Revenue & Customs rules allow you to switch between approved pension providers and Forester Life will not apply a charge to the amount being transferred.

You can transfer the value of registered pension schemes you hold elsewhere to your Forester Life Personal Pension Plan.

For more information about how to transfer into or from your Plan, please speak to your local adviser or contact our Customer Services Team on 08457 990011.

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What happens if I die?

If you die before you start taking your pension we will pay the value of your Plan as a lump sum, usually to your nominated beneficiaries.

Any lump sum benefit is normally paid free of Inheritance Tax.

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