The Financial Group
We simplify all those essential financial decisions
ABOUT PENSIONS   Pensions are, of course, designed to enable you to save sufficient money to live comfortably after you have retired from work. There are many different 'tools' used to save for retirement and the taxation and investment elements of pensions can appear baffling. We specialise in explaining, recommending and monitoring pensions for you. Below are the most common sources of pension to fund for your retirement. The   Basic   State   Pension    -   for   people   who   have   paid   sufficient   National   Insurance   contributions   while   at   work   or have been credited with enough contributions. Additional   State   Pension    -   this   is   now   the   State   Second   Pension   (S2P).   Before   6   April   2002,   it   was   known   as SERPS   (State   Earnings   Related   Pension   Scheme).   From   6   April   2002,   S2P   was   reformed   to   provide   a   more generous   additional   State   Pension   for   low   and   moderate   earners,   carers   and   people   with   a   long   term   illness   or disability   and   is   based   upon   earnings   on   which   standard   rate   Class   1   National   Insurance   contributions   are   paid   or treated as having been paid. Additional State Pension is not available in respect of self employed income. An   Occupational   Pension    (through   an   employer   pension   scheme)   -   if   your   employer   operates   a   pension   scheme, it's usually a good idea to find out about the benefits of the scheme. Personal   Pensions   Scheme   (including   Stakeholder   schemes)    -   open   to   everyone   and   especially   useful   if   you   are self-employed   or   your   employer   doesn't   run   a   company   scheme.   In   2012,   the   government   introduced   reforms   so that   all   employers   over   the   following   5   years   would   be   required   to   offer   their   employees,   who   meet   certain criteria,   automatic   enrolment   into   a   workplace   pension   –   the   National   Employment   Savings   Trust   (NEST), formerly   known   as   Personal   Accounts.   Employers   will   also   be   required   to   contribute   a   minimum   of   3%   of   salary to   these,   which   will   be   phased   in   gradually   over   5   years.   Employees   will   be   required   to   make   a   personal   gross contribution of 4% with tax relief of 1%. State   Pensions   may   not   produce   the   same   level   of   income   that   you   will have   been   accustomed   to   whilst   working.   The   full   Basic   State   Pension is   only   £110.15   per   week   (2013/14)   for   a   single   person   (though   you would   be   able   to   claim   means-tested   state   benefits   if   that   was   your only   income).   It's   important   to   start   thinking   early   about   how   best   to build   up   an   additional   retirement   fund.   You're   never   too   young   to   start a   pension   -   the   longer   you   leave   it   the   more   you   will   have   to   pay   in   to build up a decent fund in later life. Click one of the links for more information on Pensions and Retirement Planning. The Financial Conduct Authority does not regulate Taxation Advice
About Pensions