PENSIONS

A pension annuity is a financial scheme that will pay you a regular retirement income for the rest of your life. 

An annuity may be suitable if you like the security of a guaranteed income, are worried about general investment risk, and want to choose some protection against the effects of inflation. It might not be the right choice if you are likely to change your mind about how much income you want at a later date or want to actively manage your pension fund and the income you receive. 

Regardless of the size of your business, our pension advisers can help you organise your group scheme, NEST requirements, or even more bespoke arrangements. 

The National Employment Savings Trust – NEST – is a workplace pension scheme that is designed to meet the needs of individuals who are new to saving. It’s open to employers of any size, as well as self-employed people, and it gives workers a single retirement pot they can keep contributing to if they change employers or stop working altogether. Employers and their staff can access all information relating to their NEST pension investments online, 24/7.

This approach allows you to continue getting a pension income while still allowing your fund to develop further. It is designed to help you manage your income through the various stages of your retirement, while giving you the potential for investment growth.

You control where you invest your fund, how much income you take, how much tax-free cash you take, and when you take it. You could even leave something behind for your dependants. Please be aware that any income or tax-free cash you take from your pension fund must be within limits set by the government. You also need to be age 55 or over to take your tax-free cash or any income.

As with any investment, there are risks involved in income drawdown. Talk to us for advice on whether this pension strategy is the right choice for you.

You’re not the same as your colleague, your neighbour, or even your best friend. You don’t have the same needs, the same financial circumstances, or the same aspirations. And today you may have different needs than you will have tomorrow – so it’s important to choose a pension plan that gives you both control and choice over where your money is invested. 

A personal pension may be suitable if you understand the need for initial and ongoing advice in return for a wider investment choice, and you are keen to achieve a potentially better performance than a stakeholder pension. You will have the opportunity to choose from a wide range of risk-rated pension funds from some of the most prestigious fund managers. It’s not the best option if you feel you do not need a high level of investment advice, or you are only considering investing for a short time before moving your money on or taking your benefits.

Self-invested personal pensions work in a similar way to standard personal pensions. They are ideal if you want all the security and benefits of a conventional pension plan, with added flexibility. 

These government-approved schemes allow you to make your own investment decisions from a range of plans that have been approved by HMRC. 

If you don’t want to receive a high level of investment choice and advice; you would rather not take on the responsibility of managing your own portfolio; or you will be making lower contributions, a SIPP may not be the best product for you. 

Stakeholder pensions are low-cost personal pension plans that have been designed to help people save for their retirement. By law, stakeholder pensions must meet a minimum number of standards to make sure they offer value for money, flexibility, and security.

Stakeholder pensions enable you to make regular or lump sum contributions to your pension pot, in a highly tax-efficient way. They are popular amongst employed or self-employed individuals who do not have access to a company scheme. They are not preferable if you eventually want access to a wider range of funds than the stakeholder charge cap allows; want immediate access to non-insured investment options; or want to take a more active role in your investment decisions.