FAQs

The State will provide me with a pension. Do I really need to save in the SEI Master Trust as well?

To live the lifestyle you want in retirement you’ll probably need more money than the State Pension will give you and you can use our Budget Planner to help you see what you'll need. The full single tier new State Pension in 2024/25 is £221.20 per week. You can find out how much State Pension you might get at www.gov.uk/check-state-pension. It's important that you start making plans for extra retirement income, and the sooner the better.

Is there any instance where it would be better if I didn’t join the SEI Master Trust?

People on very low incomes are entitled to additional payments from the State to bring them up to a minimum level of income in retirement. The additional amount paid is called 'Pension Credit'. If you feel you may fall into this category and qualify for Pension Credit, then you may not fully benefit from joining.

Being part of the SEI Master Trust shouldn’t affect your State Pension, this is paid on top of the benefits you take from your SEI Master Trust pension account.

What happens to my State Pension if I retire abroad?

Your State Pension can be paid anywhere in the world.

However, State Pensions are generally increased each year, but you'll only receive the increase if you choose to live in another part of the European Economic Area or any country that the UK has an agreement with to allow increases. For more information, click on the following link: www.gov.uk/browse/working/state-pension

Where can I find out more information about the State Pension?

You can find out more information by clicking on the following link: www.gov.uk/browse/working/state-pension

Do I pay tax on my pension contributions?

Your contributions receive tax relief up to a certain limit. The annual allowance (AA) is a limit on the total amount you and your employer can put in your pension account in a single year without paying a tax charge. The standard AA is currently £60,000 a year so there will be many people who will not be affected by it. If your taxable income (so money from paid employment, plus other investments, assets or pensions) is over £200,000 per year, you may have a reduced annual allowance.

If you find you’re over the limit, you may be able to carry over unused AA from the previous three tax years. You can find further information on the annual allowance on the MoneyHelper website or by reading our factsheet.

If you think you may be hitting the limit for the AA, please speak to a financial adviser. The MoneyHelper website has useful information about finding and using financial advisers.

Are lump sum payments on death taxed?

Lump sum payments on death are payable under discretionary trusts, which means inheritance tax is not normally paid.

Do I pay tax on my pension?

When you decide to take your benefits, you have the option currently to take up to 25% tax-free. The rest will be taxed, whether lump sum or pension, the payments are taxable in the same way as earned income.

If you decide to take some money from your pension account now and leave the rest for later, then the 25% tax-free lump sum will be in relation to the amount that you take now. The rest of it may have its own 25% tax-free element that you get when you take it.

What if I get a divorce or dissolve a civil partnership?

If you are going through a divorce or dissolving a civil partnership, it is possible to split your pension account (as a way of dividing your overall shared assets).

Either you or your former partner can ask a court to grant a ‘pension sharing’ order. If the court grants the order, your former partner will receive a transfer value for part of your pension account, which they transfer out into an arrangement of their choice.

If you are going through a divorce or dissolving a civil partnership and you want to know what your options are, please contact the Administration Team, and update your Expression of Wish.

What happens with my pension during maternity or family leave?

To find out what happens when you go on leave, please contact your HR department for details about what your employer pays and for how long.

What happens with my pension during any other reason of leave?

To find out what happens when you go on leave, please contact your HR department for details about what your employer pays and for how long.

Can I leave the SEI Master Trust but stay with my employer?

You can choose to leave at any time, without leaving your employer. This is called ‘opting out’. You will have the same benefit choices as someone who leaves the company. You can find more details about what happens when you leave on the leaving your employer page.

You may be able to re-join at a future date if you change your mind.

Contact the SEI Master Trust

Call: 0800 011 3540
Email: memberenquiries@seimastertrust.co.uk

I want to

• Add an email address
• Register for an online account for the first time
• Opt in/out as a new starter
• Change my Target Retirement Age
• Find out what I can expect when transferring a previous pension into my Master Trust account
• Find out what I can expect when transferring my Master Trust account to another pension arrangement
• Look at what to expect when my regular contributions go into my Master Trust account
• Look at what to expect if a member of the SEI Master Trust dies
• Read FAQs on discretionary trust death benefits
• Change my personal details
• Change my investments
• Read about the Annual Allowance