Types Of Pensions
Type of Pensions: Their is basically 5 types of pensions in the UK and we will give you a brief insight into each during this page including why you should compare pensions at regular intervals. We have set up dedicated pages for pension transfer information and for 2 of the most common types of pension being personal pension and stakeholder pension so you will get more in depth information on these types of pensions by visiting the dedicated pages.
Pension Transfers
Type of Pensions: Their is basically 5 types of pensions in the UK and we will give you a brief insight into each during this page including why you should compare pensions at regular intervals. We have set up dedicated pages for pension transfer information and for 2 of the most common types of pension being personal pension and stakeholder pension so you will get more in depth information on these types of pensions by visiting the dedicated pages.
There are four main types of non-State pension. They are:
Pensions at work
If you work for a business with fewer than five employees, your employer does not have to offer you access to a pension scheme. You should still check what's available, as some small employers may offer a scheme anyway.
The government is planning changes that will mean all employers will have to offer and contribute to a pension in future. Employers who haven't offered an occupational pension in the past may set up their own scheme, or may pay pensions into a new central scheme that is being set up.
What are the benefits?
Although you don't have to join any pension scheme offered through your job, it's usually a good idea to join an occupational pension scheme if it's available because:
Not all pensions offered by employers are occupational pensions. Your employer may offer a stakeholder pension or a personal pensions through a group personal pension arrangement. These pensions are not called occupational pensions even though the employer may contribute.
The fifth pension you have some control over is the state second pension or also known as (SERPS) many people in the past have contracted out of the state second pension and instead invested this part of their national insurance contribution with an insurance company or investment house, this was common practice in the 80s and 90s with many advisors contracting clients out. The best way to find this out is to check your last pension statement and see if it has protected rights included in the statement and this will confirm if you have contracted in our out of the state second pension.
Compare Pensions
Compare Pensions: It is important when you compare pensions that you are aware of all the pension options available to you. Stakeholder pensions and personal pensions are available to everybody in the UK including people in occupational pensions. Many occupational pensions allow (AVC's) additional voluntary contributions to be paid into them but many occupational pensions will only allow you to pay this type of contribution into a cash account which many people do not want. If you fall into this category then yes you can have a pension outside of your work which will better meet your attitude to risk. The government introduced stakeholder pension some years ago to make pensions more cost effective for the client but in today's market many personal pensions are more cost effective and have larger selection of funds to choose from so compare pensions of both types before you decide.
Pension Options
Pension Options: You have several pension options to choose from, if you are considering a transfer of your pension then you can either transfer to a Stakeholder pensions, personal pensions or may have the opportunity to buy back years if you have joined a final salary scheme. If you are just starting on the pension ladder then you can select Stakeholder pensions or personal pensions whichever suits your needs and if you are reaching retirement then you can purchase one single annuity even if you have 4 or 5 different pension funds. There is also the pension option of funds to consider and most importantly that your pension matches your attitude to risk which our panel of Independent Financial Advisors will be able to assist you with. So don't be left wondering what is the best pension option for you get in touch and we will help.
Retirement Pensions
Retirement Pension: These are no different from the types of pensions described above other than a different name. Many people who are approaching retirement like to call it retirement pension which in essence is exactly what it is. If you fall into this category then the next stage for you is to purchase an annuity we would not recommend any one over the age of 58 wishes to discuss pension transfers as at this point in life it is unlikely that this would be to your advantage. You can ask your current provider if they have a strategy to make the funds less exposed to the stock market and this is the avenue we would expect to be followed at this time of life. If you are unsure then please use the contact button at the top of the page and we will be happy to assist.
Compare Pension Summary
Compare Pension Summary: We have put together this page to give you an insight into things you should consider when you wish to compare pension. Their is many other aspects to consider including attitude to risk, retirement age and many other factors so if you need help then please contact us using the box above. Moneyandme hope you have got some benefit from reading this page as our aim is to assist the public in making the right decisions for their needs. If you feel that we could enhance this page in any way for our clients then please use the feedback form at the top left of the page and our IT department will take all feedback into account for future development. Moneyandme would also like to thank you for taking the time to read this and any other pages you have visited and hope you have found them of benefit to help you in your goals.
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