Pace DC Pension Modeller


Welcome to the Pace DC pension modeller. The modeller can show you:

  1. How much it costs you to be in Pace DC and how much the Co-op will pay in to help you save.
  2. How much you might get at retirement and what your choices are. You can also see the effect of changing your contributions or the date you retire.


This modeller has been created by the Co-op to illustrate the costs of Pace DC and the possible benefits you may receive when you retire. It does not contain individual member records or pensions information. As such, the illustrations provided by the modeller are not a guarantee or entitlement to a particular level of benefit. Your actual retirement benefits from Pace DC will depend on the amount you choose to contribute, the performance of your chosen investment option and how you choose to take your benefits when you retire.

Your Details

You’ll need to provide a few basic details so the modeller can estimate your contributions to Pace DC and the benefits you may receive at retirement.

Date of birth



We need this to work out what you might get as a pension, due to different life expectancy for males and females.

Date joined Pace DC

If you don't know when you joined Pace DC you can find this information on your payslip.

Your pensionable pay

Enter your current yearly pensionable pay. Pensionable pay includes your basic pay and overtime, but not bonuses. Make sure you enter an annual amount before tax and not the amount you receive each pay period.

Add the current value of your Pace DC account (optional)

Your Pace DC fund value

If you’re already a member of Pace DC, you can add the value of your fund here to get a more complete picture of the benefits you might get. To find your latest fund value, log on to Manage Your Account ( or use the fund value on your latest Pace DC benefit statement. If you’ve paid Additional Voluntary Contributions (AVCs) these will be on a separate statement.


Your Pace DC fund value at

We need this to work out your retirement benefits. This will be the date on your Pace DC benefit statement, or today’s date if you use the value from Manage Your Account (

Make your choice

Your retirement age

Your Normal Retirement Age in Pace DC is 65. You can choose to retire earlier or later than this. The earliest you can retire is age 55, unless you have a right to retire earlier than this or are suffering from ill-health. If you take your benefits earlier they may be smaller, as you will have paid in less and had less time to benefit from investment growth.

Your contribution rate

Use this slider to see how changing your contributions could affect your benefits – the more you pay in, the more the Co-op will pay in, up to 10% of your pensionable pay.

The cost to you is much less than you might think because pension contributions are paid free of tax.

The modeller assumes you make contributions through NICE Pensions (a salary sacrifice arrangement) so you will also pay less National Insurance.

How it works

For only per
would be paid into your Pace DC account

You can choose your contribution rate. If you don’t make a different choice, you’ll pay in 3%4% of your pensionable pay.

If you contribute


The cost to you is much less than you might think because pension contributions are paid free of tax.

If you make contributions through NICE Pensions (a salary sacrifice arrangement) you will also pay less National Insurance.

*Actual cost to you

The Co-op makes valuable contributions to your pension – up to 10% of your pensionable pay, depending on how much you pay in.

The Co-op will contribute


Total contributions


What you could get

At years old your Pace DC fund value could give you either:

You can take all of your benefits as a one off cash lump sum. The first 25% will be tax free and the rest will be taxed as income. If you take a large cash sum this might mean you pay more tax than you would normally.

as a one-off cash lump sum


Your pension will be taxed as income.

The benefits shown will be different from the amounts shown on your benefit statement from Legal & General. This is because Legal & General use different assumptions about what might happen in the future. For more information see ‘About the modeller’s calculations' on the ‘What Next’ page.

a pension of

a year in retirement


as a one-off cash lump sum

How much of your fund do you want to take as a cash lump sum?


You can take up to 25% of your Pace DC account as a a tax-free cash lump sum, but anything above this will be taxed as income.


You don’t have to take a cash lump sum or a pension at retirement. If you want to, you can leave your account invested after you retire and take money out as and when you need it. It is important to note that this option isn’t available directly from Pace DC, so you’d have to transfer your Pace DC account to another provider that offers this feature.

You could think about a
drawdown option

Figures are shown in today's terms
Change some assumptions we've made

Account growth

Your Pace DC account is invested to help it grow. The amount it grows by will depend on where it is invested. The modeller assumes that your account grows at a rate of a year (medium growth). If you are close to retirement it may be more appropriate for you to select a low growth rate. More information on this is available in ‘About the modeller’s calculations’.

Choose a pension that

You can choose a pension that increases each year during your retirement to help protect against inflation, or one that stays the same.

Benefits for a spouse/partner

You can choose a pension for yourself, or one which also provides a pension for your spouse or partner after you die. If you choose a pension for your spouse/partner, the modeller assumes they’ll get half of your pension amount when you die.

What Next?

Now you have a better idea about Pace DC and what you might get at retirement, what’s next?

Join Pace DC

Joining is easy – all you need to do is complete the Join Pace DC form.

If you are not already a member of Pace DC and you meet certain rules set by the Government about your age and your pay, you’ll automatically become a member around three months after you start working for the Co-op. The Co-op and Legal & General will send you information about the process, and you will join Pace DC and contribute 3% 4% of your pay.

If you’re not automatically enrolled into Pace DC because you don’t meet the criteria, or if you want to join as soon as you join the Co-op, just complete the Join Pace DC form.

Change your contribution rate in Pace DC

When you join Pace DC, you and the Co-op will pay contributions into your account.

If you’d like to change your level of contribution, please complete the Change your Contribution Rate in Pace DC form.

For details of the contributions from Co-op please see your pension guide.

More about your retirement options

Your Retirement Guide will help you understand your options and there’s a useful checklist of things to do when you’re near retirement, as well as tips on how to budget for retirement.

Helping You Choose

To make sure you make the most of your options, getting good help and advice is really important. That’s why the Pace Trustees have appointed HUB Financial Solutions, specialists in the retirement market, to help you choose the best option for you when you come to retire. The cost of advice will be explained to you before you decide to go ahead.

If you would like to speak with HUB Financial Solutions you can contact them on 0345 863 0495 or email

If you’re aged 50+ and have built up pension savings in a DC scheme, Pension Wise is a free Government service that can offer you:

  • impartial guidance (online, over the telephone or face to face) to explain what options you have and help you think about how to make the best use of your pension savings
  • information about the tax implications of different options and other important things you should think about
  • tips on getting the best deal, including how to shop around.


This Government service also provides free information and guidance on money, pensions and debt matters, through The Money and Pensions Service (MAPS).

Go to for more information.

Transfer another pension fund into Pace DC

If you’re paying contributions into Pace DC, you can transfer other pensions into your Pace DC account if you’d like to.

If the pension you’d like to transfer into Pace is from a Defined Contribution (DC) scheme, the documents you need can be found here.

You should read 'Your Guide to Pension Transfers' before you complete the transfer request form and return it to Legal & General.

The administrator of your old pension may also need you to complete some forms before they can transfer your pension to Pace DC.

About the modeller’s calculations

The modeller has to make some assumptions about the future, so you should treat its calculations as a guide. The actual benefits you receive when you retire will be different from the estimated figures. The modeller makes some assumptions about:

  • Pace – it assumes that Pace won’t change in the future
  • You – it assumes that you’ll remain a member, and continue saving into Pace until you retire
  • Some general factors – including inflation, annuity rates, market conditions and pensions law

The benefits shown here will be different to the amounts shown in benefit statements and any online pension calculators provided by Legal & General. This is because Legal & General use different assumptions about how your fund would be invested and also about what might happen in the future.

Pace is run according to its Rules and pensions law. If there’s any difference between the benefit illustrations shown in the modeller and the benefits provided in accordance with the Rules, the Rules will come first.

More Detail on the Modeller’s calculations


The modeller assumes:

  • A fixed inflation rate of 2.5% a year from the current date until you retire.
  • Your salary increases at 2.5% a year.
  • All pension contributions, up to 10%, are made through NICE Pensions (a salary sacrifice arrangement). See the NICE Pensions factsheet for more information. Contributions over 10% are not shown in the modeller.

Pension benefits

The modeller assumes:

  • You remain in Pace until retirement without any career breaks or changes in your working hours.
  • You will continue to pay at your selected contribution rate until you retire.
  • Your current annual pensionable pay is used as the starting value for the modeller.
  • The Rules of Pace don’t change in the future.
  • That you take all of your Pace DC fund as cash at retirement
    That you take 25% of the fund as tax free cash and use the rest to buy an annuity.

Account Growth

Your Pace DC account is invested to help it grow. As a default, the modeller assumes that your pot grows at a rate of a year. The amount it grows will depend on where you choose to invest – the modeller assumes that you invest in the Pace Growth (Mixed) Fund, which is where you will be invested if you have not made an investment choice and have more than 10 years to go until your retirement. Some funds (such as the Pace Cash Fund) provide a more stable but lower return. If you are invested in these funds, it may be difficult to achieve a growth of p.a. This could be the case if you are close to retirement. For more information see the Fund Guide.

You can look at how your fund might change if the assets perform better or worse than expected.

You can select different levels of expected account growth, and the modeller assumes the following:

  • Low: growth
  • Medium: growth
  • High: growth

We updated these assumptions in late 2019 following discussions with Legal & General, to reflect market conditions at that time.

There is also an annual charge (0.29% for most funds) applied to your account. The modeller makes an allowance for this.

We’ve shown low, mid and high growth rates to give you an idea how much your savings could be worth when you take your benefits, but it’s important to remember that these are just illustrations, and when you come to take your benefits your pension pot will depend on how your investments have actually grown (and there is no guarantee that your fund will provide these returns).

The latest update to the assumptions reflects a reduction in projected investment returns; in particular, the estimated “low” growth rate is lower than the rate of inflation that we use for projecting your future benefits, and might show that the value of your fund would not keep pace with inflation (so would therefore fall “in today’s terms”). Please note that these are just illustrations that show what could happen under different financial circumstances.


The modeller assumes:

  • Your pension savings across all pension schemes remain under the Lifetime Allowance, which is £1,073,100 for the 2020/21 tax year.
  • Your pension savings across all pension schemes remain under the Annual Allowance, which is £40,000 for the 2020/21 tax year if you earn less than £200,000. This limit might also be lower (currently £4,000) if you have already taken a cash lump sum of over 25% of the value of your pension account or started flexible drawdown, from a DC pension scheme. The modeller assumes you haven’t hit this limit.
  • Tax relief rates don’t change in the future.