Tax treatment depends on your circumstances and is subject to change
There are different types of pensions, all with different features and benefits. Understanding what pension you have and how it works is the first step to making sure your financial future is as secure as possible.
Personal pensions come in all shapes and sizes. The key things they have in common are that they will involve a personal contract between you and your pension provider, and their aim will be to provide you with an income at retirement. Plus, the value of your pension will depend on: how much you have contributed; how long you have saved for; how well your investments have done, and the impact of scheme charges.
A final salary pension, which some employers provide as an alternative to a personal pension, guarantees an income for your retirement. The amount you receive depends on how long you have worked for the company and your salary on leaving.
Types of final salary pensions can vary based on whether you work for the public or private sector.
They come with very lucrative benefits and guarantees.
The State Pension is a means tested benefit that many people use to top-up their retirement income. Although it’s been around for over 70 years, the government sometimes makes changes to it. The most recent change was in 2018 when the State Pension age for women increased. And the age for both men and women is set to change again in the coming years.
Will you qualify for the full amount?
Self-invested personal pension (SIPP)
Small self-administered scheme (SASS)
Local government schemes (LGPS)
Private company final salary pensions
We can help you to make the best possible decisions when it comes to your pension.
Taking pension money early is not right for everyone as it will leave you worse off in retirement. Also, tax treatment depends on your circumstances and is subject to change. That’s why it makes sense to get help from a regulated specialist.
