Phone Yash Tosar:
01908-523-420
11 Furzton Lake
Shirwell Crescent
Milton Keynes MK4 1GA
What is a Pension?
A pension is a way to invest money and build a nest egg for your retirement. It differs from other kinds of investment only in a legal sense. There are specific rules and regulations covering UK pensions, and tax advantages not available to other types of investment.
In the UK, there are 3 different kinds of pension...
- Personal Pension
- State Pension
- Company Pension
Personal Pension
You can take out a personal pension with your bank, building society, life insurance company, or through an independent financial adviser (IFA) like me. The underlying institution invests the money you save on your behalf. You can enjoy the benefits of your pension from age 50, or age 55 from 6 April 2010.
There are a number of ways you can obtain your pension benefits, including tax free pension cash. You'll find more information about Personal UK Pensions below.
State Pension
Your State Pension is linked to the contributions you've paid to National Insurance. In some cases, a person may be entitled to additional State Pension.
The State Pension is payable from State Pension age – 65 for men, 60 for women born on or before 5 April 1950. The State Pension age will increase for women born after 5 April 1950 from 60 to 65 between 2010 and 2020 and then for both men and women from age 65 to 68 between 2024 and 2046.
You'll find more information about the State Pension here.
Company Pension
A company pension is set up by an employer, and provided for its employees on retirement. If you're eligible for a company pension, it's certainly worth serious consideration. Most people will be better off in retirement if they join a company scheme. Find out more.
What does a Personal Pension do?
A private pension is designed to pay you an income when you retire. This may have tax implications for you, and it's wise to consult an experienced IFA to see whether or not a personal pension is right for you.
Personal pensions are designed so you pay into them on a regular basis (e.g. monthly). Other people can also pay into your personal pension.
If you can't pay into your pension regularly (e.g. your income isn't regular), you might be better off with a Stakeholder pension.
Setting up a personal pension ought to be done carefully, and with the help of an experienced IFA with a good working knowledge of UK pensions. Call me on 01908-523-420 to set up your personal pension.
What is a Stakeholder Pension?
Stakeholder pensions are a type of personal pension, and are designed for people who can't make regular payments because their income isn't regular. A Stakeholder pension has to meet specific requirements that ensure it's flexible, and has a cap on the annual management charge. The minimum payment must be low, and the plan must be able to stand irregular payments.
They have to meet certain government standards to ensure they're flexible and have a limit on annual management charges. The minimum payments are also low and you can stop and re-start payments whenever you wish.
What Happens when you Retire?
In many ways, that's up to you. There are plenty of options in the UK, and it's essential that you discuss your options with a qualified Independent Financial Adviser with UK pensions experience.
Many people use their pension to purchase an annuity, which pays a regular income for the rest of their lives.