Most people recognise that it is wise to plan for their retirement. This is especially true for those who are hoping to retire before the usual State Retirement ages.
Putting aside a regular amount of money during your working life is probably the most appropriate method to ensure that you will have sufficient income during your retirement. Investing into a Pension plan has historically been the most popular method of making these regular commitments. The tax advantages offered by the UK Government provide the opportunity for your Pension Fund to grow with virtually no tax.
We can help you in your choice of Pension Plan. Our helpful guides explain the differences between the various types of pension arrangement, whether you are employed, self employed or taking time away from day to day working perhaps as a carer or to raise your children.
Registered Pension Schemes
Schemes to provide pensions are called registered pension schemes*. There are four main types of pension scheme, called arrangements:-
Defined benefit arrangements
Money purchase arrangements
- Personal pensions
- Stakeholder pensions
- Retirement annuity contracts
- SSAS - Small Self Administered Schemes
- FSAVC - Free-Standing AVC schemes
- SIPP - Self Invested Personal Pensions
For example the terms might be '1/60th for every year of service, or whatever the fund buys, if greater'. If performance was good then the full fund will be used and it will be a money purchase arrangement. If there was poor performance, then the scheme would pay out the 1/60th and be seen to be defined benefit.
Cash balance arrangements.