The links below will take you to the appropriate pensions page.
Frequently asked Questions about pensions:
My partner works and has an income but I do not can I still take out a pension plan?
Yes you can. Many of our clients are in the same situation, it is not unusual in a typical household for one member of the family to have an income and the other not to. Your partner can contribute a maximum of £3600 per annum into a personal pension on your behalf. There are many reasons why this may be a suitable thing for you to do. You may wish to have the independence a pension plan in your own name would provide. However the main reason most of our clients choose to do this is for tax planning as the pension contribution receives Income Tax relief at your partners highest rate. For example if your partner is a higher rate taxpayer although £3600 will be invested they would only have to contribute £2160, the rest will be paid by the Government.
I have an income and am considering starting a Pension Plan, how much can I contribute into it?
It depends on your circumstances and the type of pension plan which is most suitable for you to take out. The most common form pension plan taken out is A Personal Pension Plan, you can contribute 17.5% to 40% of your net relevant earnings into one of this plans depending on your age. It can be paid in by yourself, your employer or a combination of both.
At what age can I receive the proceeds from my Stakeholder Pension Plan?
For Stakeholder Pension Plans the proceeds can be taken between the ages of 50 to 75. The income generated from the proceeds will be payable until your death and it is even possible to arrange for your partner to receive a reduced income on your death. It is important that when you approach retirement you seek Independent Financial Advice to decide which type of retirement package you take. More often than not you can provide yourself with a higher income by transferring your proceeds to a different provider.
Can I take all the proceeds at retirement as a lump sum?
No you cant. All the proceeds can be used to provide yourself with an income until death. Alternatively you can take a percentage of your fund as a tax free cash lump sum and use the rest to provide an income. The percentage you can take as a lump sum varies depending on the type of pension plan you have. For Stakeholder Plans the maximum is 25%.
My employer runs a Group Personal Pension Scheme, should I join?
It really depends on the type of scheme your employer runs. Most responsible employers will contribute into a plan on your behalf if you contribute into it yourself. For example if you are a basic rate taxpayer and contribute £100 gross and your employer matches your contribution you will have invested £200 per month yet only physically paid out £78 per month. If you are in any doubt you should seek Independent Financial Advice.
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