Income Drawdown / Unsecured Pensions
Company Pensions, Auto Enrolment/NEST
Company pension reform means rules is changing how employers must run their pension scheme. Auto enrolment/Nest are being phased in and mean compulsary employer contributions and that pension plans will need a default fund. The Government is shifting the responsibility for pensions from public funds to the private sector. Company pension plans will need to meet many new criteria. Non-compliance will be the result in penalties and fines.
Annuity Providers and Best Retirement Annuity Incomes
Annuities normally provide a 25% lump sum and a retirement income. Annuity providers compete on rates meaning that the best annuity quotes may provide 40% more than your pension provider is offering. Annuity Tables and calculators can help you get the best annuity. UK Annuity advice can ensure you are comparing like with like, and choosing the right type of annuity ie Immediate Vesting Personal Pension Plan (IVPPP), Compulsory Purchase Annuity (CPA), Purchased Life Annuity (PLA).
Reviews of Pension Performance/ Transfers
Pension fund performance depends on the growth of the funds and the amount of charges coming out. When looking at a pension transfer a financial adviser will review a forecast of what your funds should be at retirement age against like for like forecasts from other providers on the open market. Defined benefits and guarantees often mean a pension calculation of this type is irrelevant as you could be transferring guarenteed retirement income for a more risky proposition.
Self Investment Personal Pensions (SIPPS)
Self Invested Personal Pensions (SIPPS) are pension plans that are self managed by an individual (often with backup from an IFA). They are a tax efficient pension wrapper that can purchase commerical property, overseas property, Life settlement and other investments outside the scope of personal pensions. An online platform is normally used to enable the SIPP holder to buy "their" best SIPP investments. SIPP providers must follow SIPP rules but pension pots can be invested more widely in SIPPS than most other retirement vehicles.
New Personal Pension- Planning for Retirement
Personal pensions are a means of retirement planning where you make pension contributions during your working life to provide you an income in retirement. Pension payments attract tax relief to encourage private retirement planning. Setting up a new pension can be very easy. Get advice from an IFA about the best pension for you and how much you should be contribution. With the state pension age rising, and the black whole in the United Kingdom public coffers it is important to take responsibility for your pension provision.