Group Personal Pension Schemes (GPP)

A Group Personal Pension is a type of personal pension, and functions in much the same way as a regular personal pension scheme (see Personal Pensions). The main difference is that a Group Personal Pension, or GPP, is set up by your employer who selects the pension scheme provider on your behalf. Employers will usually offer a GPP if they do not offer their own occupational pension scheme (see Occupational Pensions).

There are several benefits to joining a personal pension scheme through your employer. Firstly, you do not have to worry too much that you have chosen a scheme which will fail to meet your retirement needs; usually an employer will use a financial advisor to help them find a pension scheme provider whose product is appropriate for their employees. Secondly, your employer will usually make contributions to your personal pension, allowing your pension fund to grow at a better rate and leaving you with more money when you come to retire. Your employer may be able to take your pension contributions automatically out of your pay packet, relieving you of the need to set up separate direct debits. Since the pension scheme has been sold to several people, the company will usually negotiate smaller charges from the scheme provider based on the large number of pensions sold, reducing the amount that you would have to pay as an individual. In addition, if you stop working for your employer you should be able to continue paying into the pension scheme, and you will be able to keep the contributions that your employer made. However, once you have stopped working for your employer you may be required to pay higher administration fees. For more details see Leaving a Pension Scheme Early.

Every saver will have different needs when it comes to their pension fund and so it is important that each individual receives individual care, to ensure that their investments are tailored to their needs. Even if you are a member of a Group Personal Pension scheme, your investments will be assessed individually, to take your personal circumstances into account, such as your age and the number of years remaining before you take retirement.