Annual allowance
The government places a limit on the tax-free amount of money that can be saved into a pension each year. This is currently £60,000 a year. If you want to, you can save more than this into your pension in a year, but any contributions above this amount won’t get tax relief.

Your Annual Allowance may be reduced if you earn more than £260,000 a year. It would also be reduced if you have flexibly accessed any other pension arrangements.

Annuity
An annuity is a policy that you buy from an insurance company that provides you with a guaranteed income for the rest of your life. There are many options for how an annuity can work, which affect how much it costs. For example, you could have a flat-rate annuity or one that increases each year with inflation. You can shop around for an annuity in the same way as you would for your home or car insurance. 

Contributions
The money you pay into your account in the Plan while you’re working at the bank. 

Defined benefit
This is an old-style pension arrangement, also known as a final salary scheme, which pays you a pension in retirement that is linked to your salary and length of service.

Defined contribution
The Plan is a defined contribution (DC) pension arrangement, which means your income in retirement depends on how much you contribute to build up your pot of savings. 

ESG
Environmental, social and governance (ESG) considerations (including climate change) are applied to specific investment funds as part of a responsible investment approach.

Lifestyle investment
A way of managing investments that uses an automatic process of gradually switching your pension account from higher-risk funds into lower-risk funds as you get closer to your target retirement age.  

Self-select fund
One of the funds in the range of investment funds that are available to you if you prefer to make your own investment choices rather than use one of the lifestyle options.

Target retirement age
This is the age at which you want to take your Plan savings. It can be any age from 55. Please note that the government is raising this age to 57 in April 2028. 

If you were born after April 1971, the earliest you can take your retirement savings will be age 57.

Transfer-in
If you have pension savings elsewhere, for example with a former employer, you can transfer them into the Plan. To find out how to do this, please Get in touch. 

Transfer-out
If you leave the bank, you can transfer your savings in the Plan, for example to your new employer’s pension arrangement. To find out how to do this, please contact your new pension scheme. 

Trustee
The Plan is set up under a Trust, which means it’s separate from the bank. It’s managed by a Trustee board made up of six trustee directors. Their role is to act in the best interests of the Plan’s members. 

ValueAccount
Your NatWest Group salary, benefits and your pension are funded from your ValueAccount. The bank provides 10% of your ValueAccount as pension funding.