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Want to contribute into a pension or to start drawing your pension?
Saving for retirement is something that most of us put off for as long as we can. But the reality is that the sooner you start paying into a pension the higher your income in retirement is likely to be. If you're working you're usually building up the right to a basic State Pension - and possibly an additional State Pension - but these may not be enough to give you the standard of living you want.
This section will help you to understand the benefits of using a pension to save for your retirement, what type of pensions are available, how they work and how to start saving for your retirement.
If you would like more detailed information, or if you already have a pension and want to ensure that it's on track to pay you the income you want in retirement, please contact us or have a free initial, no obligation meeting with one of our fully qualified advisers.
How pensions work
What is a pension?
Pensions are long-term investments with special tax rules - for example, you get tax relief on contributions. You can't access the money in your pension until you reach age 50, going up to age 55 by 2010.
You'll need to ask your pension provider when they will increase the minimum age as they can do this at any time between April 2006 and April 2010. But you no longer have to stop working to draw a pension as long as your scheme's rules let you.
How does it work?
The way your pension works will depend on the type of pension you have. There are three main types:-
1/ Occupational Salary-related schemes - offered by some employers
2/ Occupational defined contribution schemes (also known as money purchase schemes) - also offered by some employers
3/ Stakeholder and Personal Pensions - you can start these yourself. Alternatively you may be offered a stakeholder pension or a group stakeholder pension at work. These are also money purchase pensions.
Pensions at work
If your employer offers a pension scheme it's a good idea to find out what type it is and how you can join. Your employer makes all the arrangements and may even contribute to it.
Pensions you start for yourself
All employers with five or more employees have to offer access to a pension scheme.
If however your employer doesn't offer a pension, there are lots of pension providers for you to choose from to take out your own pension.
You can go to a provider direct but bear in mind that their representatives can only advise you on their company's own products, or ones they have adopted from other companies.
Alternatively you can obtain help in choosing a pension and provider from us here at CRM & AGM Independent Financial Advisers Ltd to guide you through the minefield of correct retirement planning.
Please take advantage of our free intial meeting to discuss your needs by clicking here
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