Acclaimed Independent Financial Group: Pensions

PENSIONS

Additional Pension Arrangements

Unfortunately, being able to live off a state pension of approximately £80 a week is becoming more and more unrealistic, and for this reason there are additional pension plans on the market to give you a better standard of living in retirement.

Basically these fall into three types: occupational schemes, personal pensions and stakeholder pensions.

Occupational schemes are company pensions set up by employers for their staff and either the employer or the employee, or both contribute to the scheme on a monthly basis. Upon retirement, the employee receives a tax free lump sum and a pension based on the number of years that contributions were made. Alternatively, a fund is built up that will allow the employee to take a tax free lump sum and then purchase an 'annuity' with the balance.

Personal pensions can be set up by self-employed and employees alike. Not only is it an excellent way of saving for retirement, but there is tax relief on contributions. It's worth noting that no other investment offers a 22% or 40% tax relief (based on personal tax rates 2006/2007) depending on the highest rate of tax you pay.

Stakeholder pensions are uncomplicated, flexible, low-cost "personal" pensions created in 2001 to help most people save some money for their retirement. Stakeholder pensions are available to everyone, including children or even those not working, but moreover, the success of a stakeholder pension is to start making contributions as early as possible and to continue doing so for as long as possible, which in turn will result in a lump sum to invest for your retirement.

The Granary, Madam Green Business Centre, Oving, Chichester, West Sussex PO20 2DD
Telephone: 01243 790760 Fax: 01243 779169 Email: Info@Acclaimed-Financial.co.uk

Disclaimer

Acclaimed Independent Financial Group is a trading name of C.P.H. Ltd which is authorised and regulated by the Financial Services Authority