Personal Pension

Random Thoughts About Pension

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But if we’re concerned with more serious sentiments such as ‘what if I suddenly meet an accident?’ or ‘what if I die at the wrong time? It is so because a group (such as family members) could share and modify their pension plans into one program which could accommodate each member’s need.

Aside from these comes the stakeholder pension and company pension. Obviously, those pensions makes life much easier because the most likely than not, the organization or company gets to fix the pension for you. However, as much as we are respecting ‘balance’, it would always be our job to check on the schemes of the organization we are planning to join and the the company we are applying for, so that we could eventually take precautionary measures.

Of course, if we should seek our own opinions, we should also seek others’ advice. Advice would help us balance our opinions and decisions.

So those are just the few ways we could deal with uneasiness and fight with life’s inconsistencies. Those are just few steps in keeping peace within when the circumstances outside are too muddled up. If there is turmoil, there could also be peace of mind, a sense of self-possession. It comes with the saying “if there’s a will, there’s a way!”

Balance is very important.

Death before Retirement, Under Salary Related Company Pension

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You might be wondering, what if you die before retiring? What will happen to your pension fund? This article will serve as a pension advice article, and will answer these questions.

If you die before you reach retirement, let say for example you are under salary related scheme of company pension, you will be subjected to different situations depending on your status as member.

If you’re a member that has stopped making contributions or in short a deferred member, your dependant will be subjected to fewer rights to your benefits depending on your scheme’s rules.

And sometimes, if you are in a civil partnership or married and the scheme’s offering, instead of Additional State Pension, benefits your dependants will receive refunds of your contributions but without interest.

But if you are an active member, meaning you are continuing your contributions, and depending on your scheme’s rules, your dependants may have the following payable benefits:

  • A lump sum of up to four times of your salary at the time of your death, tax-free of course
  • A refund of all your contributions without interest
  • A pension plan, the amount will be stated on your scheme’s rules, for your dependant.

AVCs and Company Pension Schemes

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Need some company pension advice? Then this article will help you.

Let’s admit it, increasing our pension fund is what we desire, to of course assure ourselves that we have sufficiently large amount of income on our retirement. It’s not that bad, who wants to reach his/her retirement age thinking that he/she still needs to work to have enough income to live properly.

And to do this, you can have Additional Voluntary Contributions or AVCs, which are money-making method that will increase your fund, if you are under a company pension scheme.

AVCs are more helpful to those who have started saving for pension mid-way and later on their careers and their lives. To make sure that they have larger funds, for more benefits that they and their love ones could enjoy, AVCs should be practiced.

AVCs’ advantages aren’t limited to their characteristic of building a higher pension fund, but it has also other advantages like:

  • Chance of either varying the amount of payment or even stopping it.
  • Tax relief on contributions, which certain limits are under Pension Rules of April ’06
  • In most cases, administration charges are much lower compared to investing onto a separate scheme.

Facts about SIPP Pension

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Do you know that SIPP pension is a personal pension scheme that is approved by the government of United Kingdom? And do you know that under this personal pension, you are allowed to choose investments of your choice from the collection of accepted investments by the HMRC (HM Revenue and Customs)?

With SIPPs, like stakeholder pension another type of personal pension, tax rebates are also allowed on your contributions. But these are in exchange for limits on accessibility. And also under this scheme benefit withdrawal, rules for contributions and others are the same with other types of personal pension.

Although under SIPPs having any investments that are HMRC-accepted is alright, there are still some that are not allowed by most providers. Not allowed by most, for some of these are subjected to weighty tax penalties. That’s why there are allowed by primary legislation but will eventually be banned by providers due to their high tax penalties. And these weightily taxed investments are the following:

  • Residential properties
  • Assets which are somewhat unusual, but highly collected, like art, stamps, classic cars, etc.
  • Concrete and movable properties, less than £6,000, are subjected to additional conditions with regard to how they are used.

Pension Protection Fund and Financial Assistance Scheme

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PPF is the abbreviation used for the Pension Protection Fund. It is a fund used for protecting members like you of a final salary, also known as a defined benefit, company pension scheme. PPF works by paying normal compensation that is based on the amount of your pension, in case the company got bankrupt and your scheme doesn’t have enough funds to cover your pension.

You will receive regular compensation if your company’s scheme and PPF conditions are in harmony. Compensation equal 100 per cent of your pension will be given to you upon reaching your scheme’s retirement age. And if you haven’t reached your schemes retirement age, depending on PPF rules, you may be entitled to regular compensation of 90 per cent of your pension.

How to qualify for financial help from Financial Assistance Scheme or FAS?

If you have lost out on your pension because your scheme ended after January 1, 1997, you may be entitled to FAS if your:

  • Final salary or defined benefit scheme, in some instances, was overwrought because even though your employer still doing business it could not pay your benefits
  • Final salary occupational pension scheme was under funded.

While You’re Still Young And Strong, Get A Pension!

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Not so long ago, I overheard a story which goes this way:

“Once upon a time, there was an old fisherman by the river. He was a hard-worker for he knew that he would soon enjoy the fruits of his labor.

He took a pause and murmured to himself, ‘I remember the days of my youth—carefree, lax, and full of discovery—and the rest of my days were full of toil and hard work. Now that I am old, I would be harvesting the fruits of my labor and be spending the rest of my days in rest and repose, so I must work the hardest now so that I may gain more.’

Just by then, another boat passed. In the boat was a young man lying unperturbedly. The old fisherman noticed the young man.

‘Hey young lad, I see that you’re doing nothing—just watching the clouds fly and feeling the breeze blow. Why not start working so that you will have a good harvest of your labors when the time comes?’

The young man did not stir but gave a chuckle.

‘I already did!’”

End of the story.

Being young is not an excuse to plan and work for the future. When you’re young, you think most of the ‘present moments’ but as you become older and older you become more conscious of the future. You worry; thus, you work and work for the future, tediously and more diligently as the dawning of your life nears—you get a time-deposit account or a credible pension.

That ‘youthful tendency’ leads most of us people to cram later in our lives. And trust me my fellow youth and young adults, to consider a pension while we’re still young and at the brink of our energies is very important. Yes, you might be too comfortable with your employer’s company pension or you might not want to take a risk backing up your finances with a SIPP pension (which could also go Family or Group SIPP). Or worse, you might just want to do it later in your life, and take the example of the old fisherman. Nonetheless, in case you choose to follow the example of the young man, here’s an advice you might want to consider:

  • If you’re still a working student, a personal pension best suits you. Why? Because it’s tax efficient!
  • If you want a level-up, you could go to SIPP pension. A ‘Self- Invested Personal Pension’ offers a wider range of investment which puts the self-invested pension to be a pooling pension of a group.

The Importance of Pension and Life’s Choices

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They say that ‘life is all about choices’. Truly, no matter how I discuss, negotiate, or blabber here, the decision will be yours at the end of the day. Your choices could make you that old fisherman or that young man. You may ignore the idea of getting a pension, or you may do get one . But then, why not try applying for a pension since most of pension offers today allow very low contributions and they don’t withhold penalties for payment breaks? Save for the future while the times are still right, and while you can still do so.

Balance is very important, especially when we work. We work to improve our social and economic status, our relationship with others, and especially our selves. When we work, we take out so much from us, so then, it is also proper to take back what we gave out in that process—not just to take back, but to store what we take back to provide for difficult times.

So here comes the value of pension. In the first place, why do we have to get one? Simple! Because at any point of our lives, we would have to be independent and alone. Our parents will eventually die, our sons and daughters would have their own lives, and we don’t want to be a burden to any one, do we? Most importantly, we don’t want to be pathetic when ‘those times’ come, right? With sentiments of this kind, a personal pension would serve us best.

Pension Advice in the heart of London

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Pensions can be a very complex area of financial planning and ensuring you get good pension advice is paramount. Depending on your circumstances there is a wide range of products available from simple stakeholder pensions to very complex family SIPPs, thats why if you live in London and you are looking for pension advice in London, you should seek the advice of a retirement specialist such as Retirement Solutions.

Specialist advisers will explain in detail how pensions work and the choices that are available for your particualar circumstances. They do this by conducting a fact find before they give any pension advice. In London there are many advisers that are qualified to give financial advice. But, it is wise to speak to a pension specialist adviser.

Most of the major UK life insurance companies offer pensions but their charges differ considerably, this is exactly why you need to shop around and find the right pension. Also, choice of investment is vastly different between providers, some have a small range of internal funds and others have their own internal funds and a wide range of external funds.

So if you are looking for pension advice in London speak to a pension specialist and not just a generalist IFA, for simple advice explained in plain english speak to Retirement Solutions on 0800 043 6701.

Understanding Personal Pension and Stakeholder Pension

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Personal pension, like any other type of pension plan, is a retirement benefit, which can be acquired by means of paying pension providers or financial organizations. Payments are commonly paid monthly. And organizations that manages fund for plans are more often than not banks, insurance companies, etc.

It is, as of now, the most popular type of pension plan to those who have no means of access to a company pension scheme. You can avail it, even if your just 18 years old, and you can start claiming its benefits anytime from age 55.

Personal pension is best suited for you if you are one of these following employees:

  • Whose employers does not offer any company pension scheme
  • Who have a modest amount of payment that desire to put up the amount they acquire from company pension
  • And who, although have the option of paying into a company pension, choose not to

Aside from employed individuals, it can also be availed by unemployed individuals, only of course if they can afford paying for a plan.

And it is, on the other hand, not suited for the following employees:

  • Whose employers offer access to a stakeholder pension scheme, with an employer contribution
  • And whose employers offer a company pension scheme.

What is Pension and Personal Pension?

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Do you know what pensions are? These are benefits for the retired individuals. These are given either to those who have been granted by their employer pension benefits or those who have paid into a pension plan. These can also be funded by the government or unions, not just by the employee or the employer.

Although it might look like some of Social Security programs, there are no Social Security programs that are managed in a way similar to a pension plan. To easily differentiate the two, it is a government program against a privately funded plan.

When you, as an employee or self-employed individual, pay regularly to a pension provider, usually monthly, that plan is called a personal pension. Banks, insurance companies are just some of the organizations that typically fund these plans.

It is commonly paid by you, but it can also be paid by other people on your behalf. Other people like your spouse or other family members can of course help you save for your retirement.

And good thing about these one is that it has a flexible type of plan, known as the stakeholder pension. It is for those who have modest amount of earnings, people that might stop or vary the amount of their payments.