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PENSIONS

        

Are you Ready for Retirement?

You might be far from the age of 60 but have you thought about what income you will have once retirement hits? A pension offers a long-term investment which carries some tax benefits and there are many plans which offer more than the basic state pension.

Anyone who works in the UK and pays National Insurance automatically via their wage slip/salary will receive the basic state pension once they reach retirement. However, the amount that you receive is often minimal depending on how much you earned during your working life. Therefore the earlier you consider ways of increasing your income for later, the better. You may not be able to rely on family and friends once you are older so it is essential that you have enough regular income to keep you above the water when you are no longer able to work.

Stakeholder, Personal or Occupational?

As soon as you start any employment, make sure you find out what pension schemes your employer has in place if any. This will help you to decide what extra steps you want to take in order to maximize your pension contributions.

Employers have varying levels of pension schemes some a very basic while others have an attractive plan in place. In addition, you will want to know what happens if you change job will you be able to defer your pension or preserve it?

For people who are self-employed, a personal or stakeholder pension might be a good option. They are both classed as money purchase pensions, which means you can use your contributions as a fund for investing in stocks and shares or other equities. Once you reach retirement you take a tax-free lump sum from your fund and use the rest as an income.

A Lifetime Income for You and Loved Ones

Many pension plans carry the option of taking a lifetime annuity a way of providing a regular income for you and/or loved ones. There are many types of annuities to choose from and in many cases your pension provider can offer to arrange one for you.

Make sure you consider the different types are you a smoker? You could receive an attractive annuity tailored to your type. Similarly people who suffer from a disease like asthma could also receive a higher offer this is because you are classed as having a reduced life expectancy.

        


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Compare Pensions
Compare Pensions