Investing for a SFHA pension may cost you less than you think and joining the Scheme means that your employer will also be paying towards your retirement.
Your contributions will be 6%, 6.9% or 7.7% of basic salary each month depending on which scheme option your Employer offers.
However, the actual cost may be much lower because your pension contributions are tax-free. Also, because you will be contracting-out of the additional State pension through the Scheme, the National Insurance contributions you pay will be lower.
Have a look at the Pension Calculator to see what joining the Scheme will cost in real terms.
Click here for the Pension Calculator.
And don't forget, in addition to the contributions you make, your employer will also be paying substantial contributions on your behalf - twice the level of contributions that you pay.
Ultimately, the value of your pension will be related to the length of time you pay into the Scheme and your earnings close to retirement (Final Salary options) or your revalued earnings over the whole of your membership of the scheme (CARE option).
And after you have started to draw your pension from us, your pension will continue to grow in line with inflation, up to a maximum of 2.5% a year (5% for pension built up before April 2005).
Can I make additional payments?
You may want to make Additional Voluntary Contributions (AVCs) if you want your pension to start before you reach normal pensionable age or, for example, a gap in your employment means that you have not made enough provision for your retirement.
AVCs are entitled to full tax relief and can be made either through regular deductions from your salary, regular payments or as one lump sum.
Your AVC fund will then be used to provide additional pension benefits.