A workplace pension is a way of saving for retirement arranged by an individual’s employer. It is sometimes called a ‘company pension’, an ‘occupational pension’ or a ‘works pension’. Automatic enrolment into a workplace pension is an easy, hassle-free way for workers to save for their retirement while they are earning.
Planning for Retirement
What is a pension?
The world of pensions has changed incredibly over the last few years to make them more attractive to people as savings vehicles. In April 2015, Pensions Freedoms came into force which effectively allows you access to 100% of your pension savings that are held in a money purchase pension arrangement however that doesnt mean its the best option or tax efficient to access your pension in this way. A pension is just a 'tax wrapper'.
What these changes have meant is that the pension landscape has changed incredibly and people are contributing more to pensions towards their retirement goals. There are many things to consider when you are thinking about your pension planning:
- Will my pensions provide enough for me to live on in retirement?
- What pensions have I got? Have I got lots of little pots that I dont know much about?
- Is a pension the right vehicle for me?
- What state pension will I be entitled to? How do the new state pension rules affect me?
- Is there anywhere else I can get an instant 20% return on my money in the form of tx relief?
- Am I maximising my workplace scheme and what my employer will offer me?
- Can my children have a pension and start their saving early?
- What happens to my pension when I die?
Although the new rules apply to every person, they don't apply to every pension plan so its vital to have your pensions reviewed to ensure they are still in the best place for you, not just in terms of charges and performance but in terms of the actual makeup of the plan as well.
We also work alongside Openwork's Pension Transfer Specialists to be able to offer our clients a robust Defined Benefit Transfer Processes which has been awarded the Gold Standard for Pension Transfer Advice. If you have a deferred defined benefit (Final Salary) scheme that you wish to discuss, call us today for an initial chat.
With the flexibility of pensions improving, people are more interested in utilising them as a savings vehicle towards their financial future. If you have pensions all over the place or are just starting out on your Planning journey, why not speak to one of our advisers today and ensure you are on track to the future you want.
Call KBA on 01942 889883 for more information or email info@kbafinancial.com.
The government has introduced a new law designed to help people save more for their retirement. It requires all employers to enrol eligible workers into a workplace pension scheme if they are not already in one.
The fundamental idea of a personal pension plan is simple. You put money into a savings fund and it hopefully grows in value. At retirement, you have several options which are usually designed to replace some (or all) of your employment income.
With pensions being most people’s second-largest asset, they can become a major consideration in any divorce settlement.
We all know it’s important to plan for retirement, but many of us are still not planning well, or early enough.
Personal pensions may be suitable if you are self-employed, if you are not working but can afford to put aside money for retirement, or even in addition to a company pension.
