For truly independent financial advice

01204 383930

mick@pcfp.co.uk

Please Confirm

OK Cancel

Pensions

A pension is a form of investment or savings plan designed to provide you with an income to live on when you retire. There are many different types of pension arrangements available, including the state pension.




Defined Contribution (DC) Pensions

Defined contribution pensions build up a pension pot using your contributions and your employer's contributions (if applicable) plus investment returns and tax relief.




Pension Freedom April 2015

Since 6th April 2015, those with defined contribution pensions who are at least 55 still have the option to take a tax free lump sum and a lifetime annuity. However there are now more options to consider in providing an income.

The minimum pension age will be increased from 55 to 57 in 2028.




Defined Benefit and Final Salary Pensions

A final salary scheme is a type of defined benefit scheme. Final salary pension schemes pay you a pension at retirement that can depend on certain factors including length of service and final salary.





George Osborne plans to remove death tax

Death tax on pensions abolished

George Osborne has abolished the 55% tax rate which is currently applied to pension pots left by savers to their children. This could lead to an increase from savers switching cash from bank accounts into retirement schemes to avoid inheritance tax.

Pensions Freedom

The government made it possible (from the 6th April 2015) for people to withdraw their defined contribution pensions savings however they wish, subject to income tax.

Those with defined contribution pensions who are aged at least 55 now have the option to take a tax-free lump sum and a lifetime annuity. However some of the restrictions on a lifetime annuity will be removed to allow more choice on the type of annuity taken out.

The minimum pension age will be increased from 55 to 57 in 2028.

State Pension

The Basic State Pension

The Basic State Pension is a regular payment from the government that you can get if you reached State Pension age before 6 April 2016. To get it you must have paid or been credited with National Insurance contributions. The most you can currently get is £159.55 per week (April 2017-2018).

Find out More »
State Pension

Personal Pension

A personal pension is one way you might choose to save for your retirement. Personal pensions can also be called money purchase pensions or defined contribution (DC) schemes. They may be suitable for you if you are working but are not eligible for automatic enrolment into your employer's pension scheme, you're self employed or you're not currently in employment.

State Pension

Stakeholder Pension

These are a type of personal pension but they have to meet some minimum standards set by the government. Stakeholder Pension plans are similar to Personal Pension plans in that you can take them with you if you change jobs.
Find out More »

Registered pension Scheme

SIPP and SSAS

Self Invested Personal Pensions and Small Self Administered Schemes. The aim of SIPP and SSAS schemes is to provide benefits for retirement, death, attaining a particular age or in the event of serious ill-health, incapacity or similar circumstances. Both are member-directed pensions.

Workplace Pensions

Workplace Pensions and Automatic Enrolment

Between October 2012 and February 2018 employers are now having to offer workplace pensions. This is called automatic enrolment. Your employer must enrol you into their workplace pension if you are an eligible employee.

Auto Enrolment and SSAS are regulated by the Pensions Regulator.

A PENSION IS A LONG TERM INVESTMENT, THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION.