‘As fully independent Wealth Managers, we will research the whole of the marketplace on your behalf to find a suitable pension plan for you. It is vital that you understand the extensive range of options available to provide your pension income and we will help you to navigate the options and provide the best possible solution for your retirement needs.’
A pension is designed to help you fund your retirement and replace the income that you are no longer receiving from working. Pensions are often overlooked, however as the average life expectancy is increasing so too could the length of your retirement, meaning your pension could be needed for longer than you expect. Saving in a pension is a tax-efficient way of building an income and should ideally form part of your overall retirement plan.
Personal Pension Plans (PPPs) were originally designed for the millions of employed and self-employed individuals who did not have access to company pension schemes. Introduced in July 1988, they were part of a Government push to extend pension choice and encourage those not in company schemes to build up a retirement fund; one that could cater for thier retirement needs more realistically than the state. Many financial institutions offer PPPs, though most are ran by large insurance companies and banks.
Annuities are used to provide a pension income that can be guaranteed for life. The value of the pension fund is exchanged for pension income and, once the annuity has been bought, this income may be fixed and the contract can not be reversed. The pension fund becomes the property of the annuity provider. Since April 2011, investors have had the freedom to choose when and how they take their pension, with the compulsory age of 75 being withdrawn.
A Self-Invested Personal Pension (SIPP) is similar to a conventional personal pension in as much as it can receive payments and transfers from other arrangements with the aim of providing pension benefits during the life of your retirement. It does however, provide greater scope for investment opportunities, allowing any investment approved by HM Revenue and Customs to be held within the wrapper, such as Commercial Property and shares.
A Stakeholder pension is a form of low cost personal pension aimed at encouraging those people whom do not currently have pension provision to save for their retirement. They became available on 6th April 2001 and, contrary to popular belief, are not a form of state pension. In order to reach as wide an audience as possible, Stakeholder pension schemes are intended to be flexible and easy to understand and offer the benefits of cheaper charges and low minimum contributions.