Pension Options
What is a pension?
A pension is a saving and investment plan that is accumulated over your working life in order to provide you with an income to live on when you retirement. There are many different types of pension plans available (see below) including the state pension.
A State Pension
Most people can get State Pension, a regular payment people can claim when they get to state pension age. The amount you’ll get varies depending on your situation. A Single Person’s current state pension is £168.60 per week. 2019-2020
The New State Pension
The New State Pension will be a regular payment from the government that you can claim if you reach State Pension age on or after 6 April 2016. You’ll be able to get the New State Pension if you’re eligible i.e. a man born on or after 6 April 1951 or a woman born on or after 6 April 1953. The new State Pension will replace the current State Pension scheme from 6 April 2016.
Personal Pension
A personal pension is one way you might choose to save for your retirement. Personal pensions can also be called money purchase pensions or defined contribution (DC) schemes. They may be suitable for you if you are working but are not eligible for automatic enrolment into your employer’s pension scheme, you’re self-employed or you’re not working.
Stakeholder Pension
These are a type of personal pension but they have to meet some minimum standards set by the government. Stakeholder Pension plans are similar to Personal Pension plans in that you can take them with you if you change jobs.
SIPP and SSAS
Self-Invested Personal Pensions and Small Self-Administered Schemes. The aim of SIPP and SSAS schemes is to provide benefits for retirement, death, attaining a particular age or in the event of serious ill-health, incapacity or similar circumstances. Both are member-directed pensions.
Workplace Pensions and Automatic Enrolment
Between October 2012 and February 2018 employers now have to offer workplace pensions. This is called automatic enrolment. Your employer must enrol you into their workplace pension if you are an eligible employee.
A PENSION IS A LONG TERM INVESTMENT; THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION
Auto Enrolment advice is not regulated by the Financial Conduct Authority.