Pensions plan

Do I need an actual pension plan?

A pension plan is not always the most suitable advice, as it depends on your existing investment portfolio and your personal circumstances and objectives.

If you, like most millionaire clients, want to receive a certain amount of income when you stop working then you need to have made a financial plan for a retirement pension.  In order to do this, some sort of retirement planning is essential.  An independent financial adviser or financial planner will be able to help you look at all the options available and provide you with pensions advice.

What are the different types of personal pension plans available?

Briefly, excluding company pensions, there are personal pensions, stakeholder pensions, SIPPs and QROPS.  Below is an outline on each.  For more information, go to the specific page for each one.

Personal pensions

• Available from banks, building societies and life insurance companies
• You can start receiving an income from the age of 55 (by 2010)
• No limit on the number of schemes you can have
• Contributions don’t affect your entitlement to the basic State Pension
• You can save as much as you like, although there is usually a minimum amount
• You receive tax relief on your pension contributions

Stakeholder pensions

• A cheaper type of personal pension with generally less investment options
• Open to everyone and may be worth while for those who are self-employed or who don’t have a company pension scheme available
• You don’t have to be working to contribute to a stakeholder pension
• You don’t have to contribute every month if you are unable to
• You can start receiving an income from the age of 55 (by 2010)
• You receive tax relief on your pension contributions

SIPPs

• Self-Invested Personal Pension Plan
• Holds investments to provide you with tax efficient savings when you retire
• You can choose and manage your own investments and use alternative investments such as directly investing in a commercial property
• Suitable for those with larger funds
• You can make regular payments or a single payment
• You can transfer one or more other pension arrangement into it

QROPS

• Qualifying Recognised Overseas Pension Scheme
• Not suitable for everyone
• Can have significant taxation and investment advantages for individuals with UK pension rights who either have been or will be non-resident in the UK – retiring ex-pats, for example
• Can be established in countries with more favourable pension rules than the UK to afford significant tax and investment advantages when compared with a UK pension
• When living overseas, you can access up to 40% of your fund tax-free under certain circumstances before you reach the minimum retirement age
• When you reach retirement age, you can use your fund’s balance for whatever you wish

Any questions about your pensions plan?

Please call us on 01582 839280 or Email us.