We know that pensions aren’t the most riveting of subjects and it can be easy to put off saving for retirement, particularly when it is decades away. Life is expensive and there are always things to pay for; wedding, holiday, children and mortgage to name but four.
However, if you want to enjoy a good standard of living in retirement and have a nice home, exciting holidays and be able to spoil the grandchildren, then starting a pension plan when you are young and working is imperative.
This guide takes a quick looks at some of the major pension types that you may have paid into at some time. To discuss your pension arrangements in more detail book a free initial review.
The pension provider is often an insurance company or an investment platform. If you’re employed, your employer can contribute to your stakeholder pension. Other people are also able to contribute, and you can also contribute to other people’s stakeholder pensions. Since 2006, there has been no restriction on the number of different pension schemes that you can belong to. Stakeholder pensions are flexible and portable. If you change jobs, or stop working, you can continue contributing to the scheme, and, if you join a new employer, they may also decide to contribute to it.
The government established the S32 policy as part of the 1981 Finance Act. The original intention was to allow workers and former employers to transfer built-up pension benefits into a new vehicle rather than leaving them frozen at the termination of employment.