Assumptions and Limitations

We have tried to make the HBOS Pension Planner easy to use and as relevant as possible to different colleagues' circumstances.

Pension Planner assumes that:

• You will stay in the HBOS Group Money Purchase Scheme until you retire.
• All contributions will continue at the same rate up to your retirement age.
• Company contributions are based on the contribution structure introduced in April / May 2006.
• It does not take into account the new contribution structure that applies from 2011 for Defined Contribution (Money Purchase) pension schemes.
• Your pension at retirement will:
  • Include a pension equal to 50% of your own which will be paid to a dependant on your death.
  • Increase each year in line with price inflation
  • Be guaranteed to be paid for at least 5 years following retirement.
  • Be based on your dependant being 3 years younger than you.
• Price inflation will stay at a constant 2.5% per annum until you retire and start drawing your pension.
• Income tax relief is based on the standard personal allowance.
• It will cost 4% of your fund value to set up your pension at the time your pension benefits are paid.
• After 2010 the Lifetime Allowance will increase in line with price inflation. If the Lifetime Allowance is exceeded, no additional tax is deducted.