Welcome to the Royal Pharmaceutical Society Pension & Investment Plan

Important Investment Notes

This guide is your introduction to the Royal Pharmaceutical Society Pension & Investment Plan - a simple tool that can help you invest the way that suits you best.

Before reading this guide, there are some important points you should consider. Please read these notes carefully.

Once inside a pension your money cannot be accessed until retirement, usually from age 55. Tax rules can change and the value of any benefits depends on your circumstances. The value of your investments could go down as well as up and you could get back less than you invest.

This guide is intended to help you make your own informed investment decisions and does not constitute advice. If you are at all unsure of the suitablity of an investment for your circumstances, you should seek independent financial advice. Hargreaves Lansdown can provide this for a fee.

Issued by Hargreaves Lansdown Corporate Solutions. Authorised and regulated by the Financial Conduct Authority.

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Contents

Overview Getting startedHow to choose your investments

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Overview

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How the Plan works

The Royal Pharmaceutical Society Pension & Investment Plan (‘the Plan’) is a simple and flexible way to invest for your financial future. It allows you to hold your pensions, ISAs, funds and shares in one easy-to-manage online account.

The Plan is designed to help you make more informed decisions and better provision for your financial future. You have more choice, control and flexibility to invest where you want.

There is plenty of support and ideas from financial experts to help you make your own investment decisions. You will also be able to attend group presentations and individual meetings to discuss your options in confidence as well as access guides, interactive tools, videos and research – all for free.

The Plan is provided by Hargreaves Lansdown through their award-winning Vantage platform.

If you want to save alongside your retirement, you can also invest in a Cash ISA, Stocks & Shares ISA and a Fund & Share Account, also provided by Hargreaves Lansdown.

Overview

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What is a SIPP?

Overview

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A SIPP is a Self Invested Personal Pension- one of the most tax-efficient ways to save for your future. Like all pensions, a SIPP is a long-term investment locked away for your retirement. This is currently possible from age 55.

When you retire you can normally take up to 25% of your fund as a tax-free lump sum and use the rest to provide a taxable income for the rest of your life.

Unlike other personal pensions, a SIPP gives you the choice, control and flexibility to invest almost anywhere you like. You can pick and mix from some of the best investments around the globe.

If you are unsure where to invest, there are plenty of ideas and support to help you get started.

As people are living longer and State pensions (and other benefits) pay far less than you’re likely to need, pensions are more important than ever.

Please remember, tax rules can change and any benefits depend on personal circumstances. Investments can go down as well as up in value so you could get back less than you invest.

How much can I contribute to the SIPP?

Most people can contribute as much as they earn into a pension each year and get tax relief at up to their highest rate.

If either of the following applies you should check for further restrictions:

• Your total pension contributions (individual, employee and employer) over two tax years since April 2010 will exceed £40,000.

• You have been/will be an active member of a Final Salary Pension scheme in the previous, current or next tax year.

Please note a £50,000 annual limit applies for the 2013/14 tax year, dropping to £40,000 from 6 April 2014.

Overview

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However, contributions to any other pensions may be registered in the next tax year depending on how the scheme is set up (the ‘pension input period’). You should check this with your scheme provider before making a contribution.

Download the Annual Allowance Factsheet >

You should note that a £1.5 million lifetime limit also applies for the 2013/14 tax year dropping to £1.25 million from 6 April 2014.

Download the Lifetime Allowance Factsheet >

If you are at all unsure you can call the Helpdesk on 0117 314 1795 for further information

Using ‘Salary Exchange’

The Royal Pharmaceutical Society SIPP works on a ‘Salary Exchange’ basis.Salary Exchange is simply the most tax-efficient way to make pension contributions. To learn more, click to expand each point below.

Any tax benefits you receive depend on your individual circumstances and tax rules can change. There are additional points to consider when using Salary Exchange, please refer to the website.

Overview

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Overview

Thanks to higher standards of living and advances in medical science, people are living longer and life in retirement is more likely to be healthy and active. Retirement can last 30 years or more - even as long as your working life.

In order to retire comfortably, most people find that a pension equivalent to two thirds of their final salary is sufficient.

Everybody’s circumstances are different, which is why Hargreaves Lansdown’s Pension Calculator is available to help you decide how much you should invest to achieve your income target. It’s free to use, and you can try as many different combinations as you like.

Understandably, not everyone will be able to afford to contribute the amount required to reach their targeted level of income. However you should still consider investing as much as you can, as soon as you can.

Those who have not contributed this much into a pension since they started work may need to catch up.

See if you are on track by visiting the online Pension Calculator >

How much should I invest in my pension?

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If you are at all unsure about transferring, you should seek independent financial advice, or Hargreaves Lansdown can provide advice for a fee.

If you are a member of the Royal Pharmaceutical Society Pension with Aegon, you have two options.

You can leave this plan where it is. Or, you can transfer it to the new SIPP. There are no charges or penalties for transferring.

By transferring your pension, you will have everything under one roof. This puts you in control, reduces your paperwork, and makes your pensions easier for you to manage.

How to transfer your AEGON Pension

1. Read the: Key Features > Terms & Conditions > Important Investment Notes >

2. Print off and complete the highlighted sections of both forms:

AEGON Transfer Form > and the Hargreaves Lansdown Transfer Form >

3. Please return both forms to: Hargreaves Lansdown, FREEPOST RSGU-SAHT-BKZL, Bristol, BS1 5HL

Alternatively, return your form in person to a pension specialist from Hargreaves Lansdown when they visit the Royal Pharmaceutical Society offices.

What can I do with my existing Royal Pharmaceutical Society Pension with Aegon?

Overview

Any questions? If you have any questions, simply contact the Hargreaves Lansdown Helpdesk:

Tel: 0117 314 1795Email: invest@hl.co.uk

Helpdesk opening hoursMonday - Thursday 8am to 7pmFriday - 8am to 6pmSaturday - 9.30am to 12.30pm

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Over our working lives many of us accumulate a number of different pension funds. By transferring existing pensions into the SIPP, you will have everything under one roof. This puts you in control, reduces your paperwork, and makes your pensions easier for you to manage.

Why transfer your other pensions to the SIPP?• Open up old plans to new opportunities.• Get a valuation on your pensions whenever you

wish.• See all your pensions in one statement.• Access the UK’s finest fund managers.

Discover more about transferring other pensions >

How to transfer other pensions

1. Read the Key Features > Terms & Conditions > Important Investment Notes >

2. Print off and complete the Pension Transfer Form >

3. Please return this form to: Hargreaves Lansdown, FREEPOST RSGU-SAHT-BKZL, Bristol, BS1 5HL

What can I do with any other pensions?

Before transferring other pensions, you should ensure you will not lose any valuable guarantees or incur excessive penalties. If you are at all unsure about transferring, you should seek independent financial advice, or Hargreaves Lansdown can provide advice for a fee.

Overview

Any questions? If you have any questions, simply contact the Hargreaves Lansdown Helpdesk:

Tel: 0117 314 1795Email: invest@hl.co.uk

Helpdesk opening hoursMonday - Thursday 8am to 7pmFriday - 8am to 6pmSaturday - 9.30am to 12.30pm

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Overview

You could benefit if:

• You want to save for the short to medium term e.g. an emergency fund or a house deposit.

• You want to save but do not want to expose your money to the stock market.

• You want to transfer in other Cash ISAs and make your savings easier to manage.

Discover more about Cash ISAs >

Cash ISA

Whilst pensions are the most tax-efficient way to invest for retirement, you can’t access your money until age 55.

A Cash ISA lets you withdraw your savings whenever you need, in most circumstances, and is just like any other savings account, except the interest you earn is tax-free. This means your money will grow faster than in an equivalent savings account.

• Contribute up to up to £5,760 (2013/14) or £5,940 (2014/15 tax year).

• All interest is paid tax-free.• Fixed rates may be available.• Access your money instantly in most

circumstances.• View your Cash ISA and SIPP in one place.

Please remember, tax rules can change and any benefits depend on personal circumstances. Inflation will affect the buying power of your money in the future.

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Overview

Stocks & Shares ISAs are different from Cash ISAs. A Stocks & Shares ISA lets you put money into a range of investments and shelter them from tax. For ISA investment ideas, you can use the same investment research you receive for your SIPP.

Like a Cash ISA, you can withdraw your savings at any time in most circumstances. However, a Stocks & Shares ISA should be viewed as a medium to long term investment.

• Contribute up to £11,520 (2013/14) or £11,880 (2014/15 tax year), less any contributions you have made to a Cash ISA.

• Shelter your money from Capital Gains Tax and further UK Income Tax.

• Access your money instantly in most circumstances.

• View your Stocks & Shares ISA, Cash ISA and SIPP in one place.

You could benefit if:

• You want to save for the medium to long term e.g. university costs for your children or to supplement retirement.

• You are a higher earner and have used up your pension contribution allowance.

• You want to transfer in other ISAs and save money on your holdings.

Discover more about Stocks & Shares ISAs >

Stocks & Shares ISA

Please remember, tax rules can change and any benefits depend on personal circumstances. The value of investments can fall as well as rise, so you could get back less than you invest.

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Overview

If you’ve already used your pension and ISA allowances for the tax year, a Fund & Share Account is a convenient and cost-effective way to make further investments.

• No investment limits.• A versatile dealing account for funds and shares.• Receive a consolidated tax certificate.• Access your money instantly.• View your Fund & Share Account, ISAs, and SIPP

in one place.

You could benefit if:

• You are a higher earner and have used up your pension and ISA contribution allowances.

• You want to transfer in existing funds and shares to make them easier to manage.

Discover more about Fund & Share Accounts >

Fund & Share Account

Remember, the value of investments can fall as well as rise, so you could get back lessthan you invest.

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How to choose your investments

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What kind of investor are you?

Before investing, it is important to consider what kind of investor you are.

Everyone is different, which is why different investments may be more or less appropriate for different people. Some people have a long time until they retire, some don’t. Some are willing to take more risk with their investments in search of higher rewards, others aren’t.

As a rule of thumb, before investing you should consider two important questions:

1. What is your attitude to risk? 2. How long until you retire?

1. What is your attitude to risk?

Are you a cautious or a high risk investor? Or do you sit somewhere in between? In an ideal world we all want an investment which offers the highest return with no risk. Unfortunately, this is not realistic.

Risk and reward often have a very close relationship. Investments with higher potential rewards tend to come with higher risks. Likewise, the smaller the investment risk, the lower the likely gains.

However, there are additional factors to consider when assessing your attitude to risk.

• Will I achieve my investment goals with the level of risk I am taking?

• Am I willing to accept more investment risk in the search for higher returns?

• Are my investments going to lose money? (Is safety more important to me than growth?).

Investing successfully is about balancing the risk that you are prepared to take whilst achieving the return you want. There is no set right or wrong amount of risk to take – it is a very personal decision.

We encourage you to visit the website and learn more about it. You can also read a Guide to Investment Risk & Reward.

Financial Education & Support

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What kind of investor are you?

Financial Education & Support

Lifestyling

Five years before your retirement, your pension will be automatically and gradually moved into cash, unless you inform us otherwise. Cash is far less risky than shares or bonds and so can help shelter the final value of your pension as you get closer to retirement.

2. How long until you retire?

The longer you have until retirement the more risk you might consider taking with your pension investments. This is because you have more time to ride out the ups and downs associated with riskier investments and recover from any losses. Consequently, the closer you get to retirement, the more you should think about reducing the risk within your pension. From 10 years until retirement you should start to think about reducing risk. This is to shelter the savings you have built up and to reduce the risk of large fluctuations in the value.

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Financial Education & Support

Once you have decided how much to invest, your next decision is where to invest.

The great thing about the Royal Pharmaceutical Society Pension & Investment Plan is that you can be as hands-on or as hands-off as you like - you are in control.

If you are a confident investor, you will find a wealth of funds to invest in from across all major sectors.

If you are new to the world of investing, Hargreaves Lansdown offers in depth research to get you started.

Hargreaves Lansdown are pension and investment experts. Investment ideas are the result of rigorous mathematical analysis, combined with thousands of hours of interviews with leading fund managers.

Whatever kind of investor you are, you will find ideas and research to help you make your own informed decisions. You are firmly in the driving seat.

Investment ideas to get you started

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Investment ideas to get you started

Remember, all investments, even the Default Fund, can go down as well as up in value, so you could get back less than you invest. These investment ideas are provided to help you make your own investment decisions. They are not advice.

Don’t want to make any decisions to start with? You don’t have to.

Three fund ideas to get you started - Adventurous, Balanced and Conservative. Take them as they are or mix and match. The choice is yours.

Further investment support with up to five portfolios; each for different types of investors, with different attitudes to risk.

A list of funds that Hargreaves Lansdown believes to be the best across all the major sectors.

Invest almost anywhere you like from more than 2,500 funds, shares, exchange traded funds (ETFs), gilts, bonds, cash and much more.

Here are just some ideas from Hargreaves Lansdown designed to help you get the most from your investments. Each has its own set of risks you should consider before investing.

Financial Education & Support

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Financial Education & Support

If you don’t want to make any investment decisions to start with, you don’t have to. There is a completely hands-off solution for the SIPP: contributions will be automatically invested in a default fund. The Default Fund is the Schroder Managed Balanced Fund.

You can find out more about this fund, how it invests, charges, savings and risks by accessing the factsheet below.

Discover more about the Default Fund >

The SIPP Default Fund

Remember, all investments, even the Default Fund, can go down as well as up in value, so you could get back less than you invest.

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The ABC Funds

If you want to choose your own investments but aren’t sure where to start, Hargreaves Lansdown have highlighted three funds for you to consider. Take them as they are or mix and match - the choice is yours.

Adventurous Fund Balanced Fund Conservative Fund

Discover more > Discover more > Discover more >

Invests almost exclusively in shares with the aim of attractive returns over the long-term. Adventurous funds may be more volatile than other funds, but could be considered by investors willing to take more risk in search of potentially higher returns.

Invests predominantly in shares but also holds bonds and cash. A balanced fund may be considered by investors looking for the long-term growth associated with shares but with some less volatile assets which can cushion stock market falls.

Aims to have less volatility than the stock market but still provide attractive real returns by investing across a range of assets. It may fall behind more adventurous funds in a rising market but seeks to offer shelter in a falling market. It may appeal to those who wish to take a more cautious approach to investing.

Please note, the ABC Funds are not advice. If you are unsure of the suitability of an investment you should seek independent financial advice. Investments can go down as well as up in value so you could get back less than you invest.

Financial Education & Support

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Financial Education & Support

If you are looking for a ready-made portfolio of funds you might wish to look at the Hargreaves Lansdown Master Portfolios.

Hargreaves Lansdown believes the best way to generate the highest returns over the longer term is to hold a portfolio of funds, offering exposure to every important investment area, with each sector managed by the best managers in their field. The Master Portfolios have been designed with this principle in mind.

There are up to five portfolios, each for a different type of investor, with different time horizons and attitudes to risk.

Take each portfolio as a whole – or flavour it with your own ideas and preferences.

Discover more about the Master Portfolios >

Master Portfolios

Please note, the Master Portfolios are not advice. If you are unsure of the suitability of an investment you should seek independent financial advice. Investments can go down as well as up in value so you could get back less than you invest.

MasterPortfolios

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Financial Education & Support

If you know what areas you want to invest in but do not know which funds to choose, the Wealth 150 could be a solution.

What is the Wealth 150?

This is not a fund, but a list of funds, handpicked by Hargreaves Lansdown from across the main sectors. For instance, if you wanted to invest in UK companies, where would you start? How do you know which funds are the best?

The Wealth 150 gives you a solution.

Hargreaves Lansdown analyses funds and their performance. Its research team meet or speak with hundreds of fund managers each year. Then they select what they believe to be the best funds in each sector.

The selection process is purely investment-led and seeks to ensure only the best funds make it. The team look for evidence of fund managers likely to outperform their peers.

Discover more about the Wealth 150 >

Wealth 150

Please note, the Wealth 150 is not advice. If you are unsure of the suitability of an investment you should seek independent financial advice. Investments can go down as well as up in value so you could get back less than you invest.

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The Royal Pharmaceutical Society Pension & Investment Plan allows you to pick and mix from the best investments around the globe - more than 2,500 funds from 220 of the best fund management groups.

You can also invest in shares, Exchange Traded Funds (ETFs) investment trusts, overseas shares, gilts, corporate bonds, cash and much more.

There is plenty of support available if you are looking for investment ideas as well as regular email updates, market commentary and expert research all available online and through the post.

Discover more about the investments available >

Fund Alert Service

However the market moves, things change and what is a good fund today may not deliver in the future.

This is why Hargreaves Lansdown continually monitors the Default Fund, the ABC Funds, Master Portfolios and the Wealth 150.

If something happens to a fund you hold - perhaps the fund manager leaves or there is a period of poor performance - you will be informed through a Fund Alert.

If you are unsure of the suitability of an investment you should seek independent financial advice. Investments can go down as well as up in value so you could get back less than you invest. Please note, the Fund Alert Service is not advice and does not provide a personal recommendation of where to invest.

The full range of investments

Financial Education & Support

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Getting started

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Joining the Royal Pharmaceutical Society Pension & Investment Plan is quick and easy.

However, before joining, please ensure you have read and understood the followingdocuments:

Key Features >

Terms & Conditions >

Important Investment Notes >

Joining the Plan

Once you have read this information and decided to proceed, you can either join:

Online: www.mycompanyplan.co.uk/rps

Phone: 0117 314 1795

Getting started

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Managing your Plan - online

Website

To help you take control of your investments, there is a unique website that can be accessed at any time. www.mycompanyplan.co.uk/rps • Add money online with a debit card.• Switch funds and investments at the click

of a mouse. • View research, market updates and expert

comments.• Download useful guides, videos and interactive

calculators.• Opt for a ‘paperless’ service.

HL Live The free app for iPad, iPhone and AndroidTM

Manage your Plan on the go with an iPad and smartphone.

• View your investments at any time with a secure log in.

• Switch investments easily.• Access interactive performance charts.• View prices, news and research.• Request free investment guides.• Watch video interviews with fund managers.

Simply visit the App Store or Google Play and search for ‘HL Live’.

Android is a trademark of Google Inc. iPad and iPhone are trademarks of Apple Inc. App Store is a service mark of Apple Inc.

Getting started

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• Regular copies of the Investment Times, Hargreaves Lansdown’s award-winning newsletter, packed with expert comments and the latest investment ideas.

• Top up your account by sending in a cheque.• One investment report twice a year with brief

comments and analysis on most of the funds you hold plus market commentary.

Managing your Plan - By phone or post

Telephone

Speak to a friendly expert when you have a query on: 0117 314 1795

• No automated messages or menu options – you always speak to a real person.

• Add money by debit card and switch investments.

Helpdesk opening hoursMonday - Thursday 8am to 7pm Friday - 8am to 6pmSaturday - 9.30am to 12.30pm

Getting started

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If you have any questions, simply contact the Hargreaves Lansdown Helpdesk:

Tel: 0117 314 1795Email: invest@hl.co.uk

Helpdesk opening hoursMonday - Thursday 8am to 7pmFriday - 8am to 6pmSaturday - 9.30am to 12.30pm

Any questions?

0214

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